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What Determines Trade Between China And India During The Recession Of 2008–2012?

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  • Jianhong Zhang
  • Désirée van Gorp
  • Haico Ebbers

Abstract

Despite the international status of China and India rising dramatically in the previous decades, trade between the two countries did not grow accordingly. This paper investigates the determinants of the bilateral trade performance during the period of 2008–2012 from two perspectives: comparative advantage and trade protection. Two cases, Chinese exports to India, and Indian exports to China, are analyzed by using product‐level data. The results suggest that (1) the law of comparative advantage and trade protection explain the pattern of China–India trade, while (2) in a time of crisis, the adverse forces become prominent which explains the declining trend of the bilateral trade. (JEL F13, F14)

Suggested Citation

  • Jianhong Zhang & Désirée van Gorp & Haico Ebbers, 2019. "What Determines Trade Between China And India During The Recession Of 2008–2012?," Contemporary Economic Policy, Western Economic Association International, vol. 37(2), pages 389-406, April.
    • Handle: RePEc:bla:coecpo:v:37:y:2019:i:2:p:389-406
    DOI: 10.1111/coep.12282
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    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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