Risks from Over-Specialisation - China's Underwear Town
This is an absolutely fascinating insight into China's one-trick industrial towns - underwear accounts for 80% of the Gurao's output. If that statistic isn't 'pants', I don't know what is! But is China's comparative advantage in underwear falling apart at the seams?
One trick low skilled manufacturing clusters are a feature of every industrial revolution but they are particularly vulnerable to international competition
However, increasingly China's position as a low cost manufacturer is coming under threat, and this is only going to happen at a faster rate, and the over-dependence upon one sector might prove to be destabilising, and given the number of migrant workers employed, such towns might fade away.
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Graham Watson has taught Economics for over twenty years. He contributes to Tutor2U, reads voraciously and is interested in all aspects of Teaching and Learning.
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