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Why is China so Competitive? Measuring and Explaining China's Competitiveness
Author(s) -
Adams F. Gerard,
Gangnes Byron,
Shachmurove Yochanan
Publication year - 2006
Publication title -
world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.594
H-Index - 68
eISSN - 1467-9701
pISSN - 0378-5920
DOI - 10.1111/j.1467-9701.2006.00773.x
Subject(s) - china , foreign direct investment , chinese economy , economics , exchange rate , international trade , joint venture , investment (military) , world economy , chinese market , international economics , monetary economics , commerce , macroeconomics , political science , law , politics
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.