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In recent years wages in China have been rising and the yuan has appreciated, potentially eroding China's cost advantage in manufactures. This paper explores the evolution of China's relative unit labor costs in manufacturing over 1998-2009. Between 1998 and 2003 China's unit labor costs fell,...
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­integration space, the identifying restriction of an infinitely price-elastic export supply curve produces best results. However, due to … missing export price statistics long-run interpretations are to be taken with care because they are conditional upon … assumptions on how costs and exchange-rates are passed through on export prices. …
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