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
Authors:	Holz, Carsten A. ; Mehrotra, Aaron
Publisher:	Helsinki : Bank of Finland, Institute for Economies in Transition (BOFIT)
Subject:	labour costs \| inflation \| China \| global economic slack \| globalization

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Series:	BOFIT Discussion Papers ; 3/2014
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
ISBN:	978-952-6699-62-2
Other identifiers:	777712393 [GVK] hdl:10419/212789 [Handle] RePEc:zbw:bofitp:bdp2014_003 [RePEc]
Classification:	E31 - Price Level; Inflation; Deflation ; F42 - International Policy Coordination and Transmission ; J30 - Wages, Compensation, and Labor Costs. General
Source:	EconStor

Persistent link: https://www.econbiz.de/10012148720