Growing competition in manufactures from China is believed to have placed severe pressure on the global prices of the manufactured products which China exports. This has implications for the relative prices of different sets of products and different groups of countries ("the terms of trade") and for the geographical location of global manufacturing.

This research product tests the view that China's global expansion has undermined prices by examining price trends of manufactured products imported into the US, the EU and Japan, over the period 1988-2006. The prices of products sourced from China will be compared with the same products imported from high, middle and low income economies. It will also analyse the price behaviour of different groups of products defined by their technological intensity, addressing the related view that Chinese competition is progressing from low-technology products to medium- and high-technology products

The analysis of global prices is conducted at a much high level of detail than most previous analyses of price trends.

Start date
31 March 2008
End date
29 September 2008
Grant holder
Professor Raphael Kaplinsky
Professor Xiaolan Fu
Grant amount
Grant reference
Area & Development Studies
Area and Development Studies
Grant type