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

Author

Listed:
  • 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
    as

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    File URL: https://mpra.ub.uni-muenchen.de/53287/1/MPRA_paper_53287.pdf
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    References listed on IDEAS

    as
    1. Przemyslaw Kowalski, 2008. "China and India - A Tale of Two Trade Integration Approaches," Trade Working Papers 22170, East Asian Bureau of Economic Research.
    2. 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).
    3. Wu, Yanrui & Zhou, Zhangyue, 2006. "Changing bilateral trade between China and India," Journal of Asian Economics, Elsevier, vol. 17(3), pages 509-518, June.
    4. 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.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Revealed Comparative Advantage (RCA); International Trade; China and India;

    JEL classification:

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

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