We construct a model between labor costs and revealed comparative advantage index in Chinese manufacturing industry. Using annual data from 1995 to 2014, we found that the two series of labor costs and revealed comparative advantages index are non-stationary. They are in co-integration. The revealed comparative advantages index are from 1.66 to 2.01. The results showed that Chinese labor-intensive industry still maintained a comparative edge in the world, however it has a risk to decline.
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