An RCA Analysis of India–China Trade Integration
| Author | Mohd Hussain Kunroo,Irfan Ahmad Sofi,Imran Ahmad |
| Published date | 01 February 2018 |
| Date | 01 February 2018 |
| DOI | http://doi.org/10.1177/0015732516681885 |
| Subject Matter | Commentary |
An RCA Analysis of
India–China Trade
Integration: Present,
Potential and Prospects
Imran Ahmad1
Mohd Hussain Kunroo2
Irfan Ahmad Sofi3
Abstract
The present study discusses the short- and long-run trade patterns of India and
China. Applying revealed comparative advantage (RCA) and bilateral RCA, this
study specifically tries to find out the pattern of exports and areas of specializa-
tion of the economies under study. Major findings suggest that both the coun-
tries have been performing well, in terms of merchandise trade exports, over
the past few decades, especially since 2000. The export-performing behaviour of
India and China with each other, as well as with the world, is seen quite general
in nature. In other words, irrespective of their institutional and structural differ-
ences, both India and China maintain almost the same upward moving trend with
respect to the flow of exports between them and that with the world market.
However, once we go from Standard International Trade Classification (SITC)
two-digit to SITC four-digit level of analysis, the sample economies reveal their
specialized products. At the disaggregate level, India’s export basket is void of
food products and raw materials, and it generally contains engineering goods
and technologically driven products as advantageous products. The study finds
that the areas of specialization are much wider, and the technology-embedded
products are larger for China as compared to India.
JEL: F10, F11, F43
Keywords
India and China, trade integration, product specialization, exports, RCA
Foreign Trade Review
53(1) 49–58
2018 Indian Institute of
Foreign Trade
SAGE Publications
sagepub.in/home.nav
DOI: 10.1177/0015732516681885
http://ftr.sagepub.com
Corresponding author:
Mohd Hussain Kunroo, Assistant Professor, Department of Economics, Central University of Rajasthan,
Bandarsindri, Kishangarh, Ajmer 305817 India.
E-mails: mhkunroo@curaj.ac.in; mhkunroo@gmail.com
1 Department of Economics, Aligarh Muslim University, Aligarh, UP, India.
2 Department of Economics, Central University of Rajasthan, Bandarsindri, Ajmer, India.
3 School of Humanities and Social Sciences, Indian Institute of Technology, Guwahati, Assam, India.
Commentary
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