Why is China so Competitive? Measuring and Explaining China's Competitiveness

28 Pages Posted: 19 Jan 2006

See all articles by F. Gerard Adams

F. Gerard Adams

Northeastern University - D’Amore-McKim School of Business

Byron Gangnes

University of Hawaii - Department of Economics

Yochanan Shachmurove

City University of New York, CUNY City College of New York - Department of Economics; The University of Pennsylvania - Department of Economics

Abstract

This paper evaluates factors responsible for the competitiveness of China in the world economy and relative to its East Asian rivals. China has been highly successful in capturing world export markets. Chinese competitiveness is not just a matter of an undervalued exchange rate and extremely low labour costs. It reflects the coincidence of favourable cost conditions with improvements in China's ability to produce products that meet world market specififications. These improvements are closely related to foreign participation in China's economy through foreign direct investment and joint venture enterprises.

Suggested Citation

Adams, F. and Gangnes, Byron and Shachmurove, Yochanan, Why is China so Competitive? Measuring and Explaining China's Competitiveness. The World Economy, Vol. 29, No. 2, pp. 95-122, February 2006, Available at SSRN: https://ssrn.com/abstract=877126 or http://dx.doi.org/10.1111/j.1467-9701.2006.00773.x

F. Adams (Contact Author)

Northeastern University - D’Amore-McKim School of Business ( email )

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Byron Gangnes

University of Hawaii - Department of Economics ( email )

Honolulu, HI 96822
United States

Yochanan Shachmurove

City University of New York, CUNY City College of New York - Department of Economics ( email )

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New York, NY 10031
United States
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The University of Pennsylvania - Department of Economics ( email )

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