Institute for Economic and Social Research

Seminar | Siwei Cao, Beijing Normal University


Time: May 27 (Fri.), 14:00 -15:30 (Beijing Time)

Title: Can China fill its own shoes? China-Europe Express Railway and export manufacturing relocation from coast to inland regions

About the Speaker:



Steady decline of China’s comparative advantage in cheap labor manufacturing raises the question of which country(s) will replace China to be the next export centers. We provide empirical support that China might end up replacing itself through manufacturing relocation from its coastline to inland regions. A new rail freight service connects inland Chinese cities with the European Union, incentivizing manufacturers to leave the coastal provinces with high real wage and take advantage of the inland cheaper labor while maintaining export convenience to Europe. Inland agglomeration economies, steadily lower wages, and self-sufficient subsidizing policies persistently attract coastal manufacturing capital.


Copyright © 2019 Institute for Economic and Social Research ICP record No.: Yue ICP Bei No. 12087612