Trade Expansion of China and India: Threat or Opportunity
AbstractBy exploring the export performances and specialization patterns of China and India, we assess their trade competitiveness and complementarity vis-.-vis each other as well as with the rest of the world. Our analysis indicates that (i) India faces tough competition from China in the third markets especially in clothing, textile and leather products; (ii) there is a moderate potential for expanding trade between the two countries; (iii) China poses a challenge for the East Asian economies, the US, and most of the European countries especially in medium technology industries; (iv) India appears to be a competitor mainly for its neighbouring South Asian countries; and (v) complementarity exists between the imports of China and India, and the exports of the US, some European states and East Asian countries, especially Japan, Korea, Malaysia, Singapore and Thailand, implying opportunities for trade expansion; and finally (vi) the export structure of China is changing with the exports of skill intensive and high technology products increasing and those of labour-intensive products decreasing gradually. This suggests that challenges created by China in traditional labour-intensive products might reduce in the long run
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Bibliographic InfoPaper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number RP2008/08.
Length: 24 pages
Date of creation: 2008
Date of revision:
international trade; export competition; China; India;
Other versions of this item:
- Mahvash Saeed Qureshi & Guanghua Wan, 2008. "Trade Expansion of China and India: Threat or Opportunity?," The World Economy, Wiley Blackwell, vol. 31(10), pages 1327-1350, October.
- NEP-ALL-2008-09-29 (All new papers)
- NEP-CNA-2008-09-29 (China)
- NEP-CWA-2008-09-29 (Central & Western Asia)
- NEP-DEV-2008-09-29 (Development)
- NEP-INT-2008-09-29 (International Trade)
- NEP-SEA-2008-09-29 (South East Asia)
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