The China Price: evidence and some implications

Sebastian Claro, Roberto Álvarez

Research output: Contribution to journalArticlepeer-review

Abstract

China’s import penetration in Chilean markets is higher in unskilled-labor
intensive sectors as predicted by traditional endowment-based theories of
comparative advantage. However, there is also evidence of within-industry
specialization. In particular, high-income countries receive higher prices for
its products, and Chinese products are not only cheaper in comparison to the
world average but also relative to countries with similar income per capita.
These price differences cannot account for the depth and sectoral distribution of
China’s import penetration. The relative price of Chinese products have stayed
relatively constant since the beginning of the 1990s, which means that factors
other than price, like quality upgrading, productivity growth or the access of
foreign direct investment are crucial to explain the Chinese import boom.
Original languageAmerican English
Pages (from-to)117-139
JournalEstudios de Economia
Volume33
Issue number2
StatePublished - 2006

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