China's Impact on the Manufacturing Exports of Other Developing Countries

This report brings to light the waning strength of China’s labor-intensive export manufacturing and its impact on manufacturing activity in other developing economies. Rising wages and labor shortages are prompting factory owners in China to relocate facilities inland or in many cases flee to other developing countries where wages are lower or competitive and supply of unskilled and semi-skilled workers is abundant.

The results suggest that China’s waning strength in labor-intensive exports is benefiting some developing economies more than others, while a few appear to not be benefiting at all.

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