Wage and price dynamics in a large emerging economy: The case of China

This study finds that the growth in labour costs in China is not passed through fully to final prices in China, neither in the tradable goods sector nor in the economy as a whole. This probably reflects the strong pressure on profit margins from a highly competitive environment, especially in manufactured goods. The potential implications of labour cost increases in China for global inflation pressures are also discussed.

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Year of publication:	2014-01-20
Authors:	Holz, Carsten A. ; Mehrotra, Aaron
Institutions:	Siirtymätalouksien tutkimuslaitos, Suomen Pankki
Subject:	labour costs \| inflation \| China \| global economic slack \| globalisation

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Extent:	application/pdf
Series:	BOFIT Discussion Papers.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series BOFIT Discussion Papers Number 3/2014 26 pages
Classification:	E31 - Price Level; Inflation; Deflation ; F42 - International Policy Coordination and Transmission ; J30 - Wages, Compensation, and Labor Costs. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010735268