A study on variation in comparative advantage in trade between China and India (original) (raw)
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An RCA Analysis of India–China Trade Integration
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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 specialization of the economies under study. Major findings suggest that both the countries 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 differences, 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 leve...
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The most countries try to improve their advantage towards goods with high range of demand and sustainable trade such as industrial goods and merchandise. India embarked on the path of globalization in the early 1990s with the objective to attain a higher growth profile. This question can be brought up in which goods India has have comparative adventage. The aim of this study is to analyze comparative advantages of Indian's exports commodities during of post liberalsation in 1990-2014. The well-known index for determining trade advantage is revealed comparative advantage (RCA) by Balasa. The findings by India’s RCA in exports showed India has gained comparative advantage in a number of agriculture sector such as Food items, Textiles, Leather and other Manufactures.