Abstract

https://ssrn.com/abstract=2825436
 


 



Wage and Price Dynamics in a Large Emerging Economy:: The Case of China


Carsten A. Holz


Hong Kong University of Science & Technology (HKUST)

Aaron N. Mehrotra


Bank for International Settlements (BIS)

2014

BOFIT Discussion Paper No. 3/2014

Abstract:     
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. Keywords: labour costs, inflation, China, global economic slack, globalization JEL Classification: E31; F42; J30

Number of Pages in PDF File: 26

Keywords: E31, F42, J30


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Date posted: August 18, 2016  

Suggested Citation

Holz, Carsten A. and Mehrotra, Aaron N., Wage and Price Dynamics in a Large Emerging Economy:: The Case of China (2014). BOFIT Discussion Paper No. 3/2014. Available at SSRN: https://ssrn.com/abstract=2825436

Contact Information

Carsten A. Holz (Contact Author)
Hong Kong University of Science & Technology (HKUST)
Clearwater Bay
Kowloon
Hong Kong
Aaron N. Mehrotra
Bank for International Settlements (BIS) ( email )
Centralbahnplatz 2
Basel, Basel-Stadt 4002
Switzerland
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