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A study on variation in comparative advantage in trade between China and India

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  • Bagaria, Nidhi
  • Santra, Swarup
  • Kumar, Rajesh

Abstract

This Paper investigates the comparative advantage of India & China and how this has changed over the period of 2002-2012. Comparative advantage has been tested using Revealed comparative Advantage (RCA). Export Products are analyzed based on Standard International Trade Classification (SITC) revision 1, which divide total export into ten groups. It has been found that in some commodities RCA remained stable throughout the study period whereas in some commodities there has been large variation. In some commodity groups India and China complement each other whereas in some commodities they are competing they are competing with each other in the World market. The analysis can be applied to guide policy makers in their evaluation of trade and industrial policies.

Suggested Citation

  • Bagaria, Nidhi & Santra, Swarup & Kumar, Rajesh, 2014. "A study on variation in comparative advantage in trade between China and India," MPRA Paper 53287, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:53287
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    References listed on IDEAS

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    1. Wu, Yanrui & Zhou, Zhangyue, 2006. "Changing bilateral trade between China and India," Journal of Asian Economics, Elsevier, vol. 17(3), pages 509-518, June.
    2. Banerjee, Abhijit Vinayak, 2006. "The paradox of Indian growth: A comment on Kochhar et al," Journal of Monetary Economics, Elsevier, vol. 53(5), pages 1021-1026, July.
    3. 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.
    4. Przemyslaw Kowalski, 2008. "China and India - A Tale of Two Trade Integration Approaches," Trade Working Papers 22170, East Asian Bureau of Economic Research.
    5. Kumar, Anjani, 2010. "Exports of Livestock Products from India: Performance, Competitiveness and Determinants," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 23(1), January.
    6. Amita Batra & Zeba Khan, 2005. "Revealed comparative advantage: An analysis for India and China," Indian Council for Research on International Economic Relations, New Delhi Working Papers 168, Indian Council for Research on International Economic Relations, New Delhi, India.
    7. Przemyslaw Kowalski, "undated". "China and India: A Tale of Two Trade Integration Approaches," Indian Council for Research on International Economic Relations, New Delhi Working Papers 221, Indian Council for Research on International Economic Relations, New Delhi, India.
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    Cited by:

    1. Ram N. Acharya & Rafael Perez-Pena, 2020. "Role of Comparative Advantage in Biofuel Policy Adoption in Latin America," Sustainability, MDPI, vol. 12(4), pages 1-13, February.

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    More about this item

    Keywords

    Revealed Comparative Advantage (RCA); International Trade; China and India;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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