1、市场经济带给企业巨大的生存压力，且短期内难以提升竞争力，所以做出次优选择。
随着社会主义市场经济体制的建立，企业的外部压力将主要来自市场而不是来自政府的行政干预。这种情况下，在短期内提升企业竞争力的目标确难以实现，因此在全球化经济的驱动下，为了尽快吸引国际市场的目光，而采取了次优策略。
2、劳动力市场人力资本供给存在结构性矛盾是一个由来已久的问题。
长期以来，中国劳动力市场明显供大于求，但结构性缺工突出，大量低文化、低技能的农民工涌入城市，他们吃苦耐劳，再低的工资也可以接受，这是城市劳动力市场价格不能提高的一个主要原因。
4、政府“营造投资环境”的负面作用，引发土地价格的恶性竞争。
90年代中期之后，引进外资作为一种国家战略受到极大鼓励，但事实上却出现了GDP不断
增长，招商用地价格不断下滑的怪现象。
Race to the bottom - a "race to the bottom" phenomenon in China reasons
A market economy brings enterprise tremendous pressure to survive, and it is difficult to enhance competitiveness in the short term, so make sub-optimal choices.
With the establishment of the socialist market economic system, the external pressure on companies will mainly come from the market rather than administrative intervention from the government. In this case, to enhance the competitiveness of enterprises in the short term goal is indeed difficult to achieve, so in a globalized economy, driven by the international market in order to attract attention as soon as possible, while taking a sub-optimal strategy.
2, the labor market there is a structural contradiction of human capital supply is a long-standing problem.
For a long time, China's labor market is clearly oversupply, but prominent structural shortage of workers, a large number of low literacy skills of migrant workers into cities, they work hard, then you can accept low wages, it is not the price of the urban labor market a major improvement.
3,the government "to create the investment climate," the negative effects caused by the vicious competition in land prices.
After the mid-1990s, the introduction of foreign capital as a national strategy to be greatly encouraged, but in fact there has been a growing GDP, investment land prices continue to decline strange phenomenon.
