TRADE CONCENTRATION VS. DIVERSIFICATION: A STUDY OF CHINA AND INDIA (2001-2023)
DOI:
https://doi.org/10.29121/shodhkosh.v5.i1.2024.4535Keywords:
Exports, Imports, Concentration Index, Diversification Index, Intensity IndexAbstract [English]
The primary objective of this study is to analyze trade relations between China and India. It utilizes indicators such as the trade intensity index, concentration index, and diversification index to assess their trade dynamics. The analysis is based on secondary data from WITS and UN Comtrade, covering the period from 2001 to 2023. The findings indicate that China has a highly diversified export structure, allowing it to adapt to global economic changes, whereas India's exports remain concentrated in a limited number of industries. Despite efforts to enhance trade relations, the study highlights India's continued structural dependence on Chinese imports as a key economic challenge.
References
Agosin, M. R., Alvarez, R., & Bravo-Ortega, C. (2012). Determinants of export diversification around the world: 1962–2000. The World Economy, 35(3), 295–315. DOI: https://doi.org/10.1111/j.1467-9701.2011.01395.x
Bhurange, A., et al. (2013). Trade openness and economic growth nexus: BRICS. Ministry of External Affairs, Government of India. ISFIRE Working Paper Series.
Chauhan, A. K., & Kumar, M. (2024). Trade beyond borders: Decoding India-China economic relations. Scholar Journal of Economics, Business and Management, 11(3), 85-95. DOI: https://doi.org/10.36347/sjebm.2024.v11i03.003
Hall, M., & Tideman, N. (1967). Measures of concentration. Journal of the American Statistical Association, 62(317), 162-168. DOI: https://doi.org/10.1080/01621459.1967.10482897
Karkanis, D., & Fotopoulou, M. (2022). Trade integration, product diversification, and the gravity equation: Evidence from the Chinese merchandise imports. Journal of Chinese Economic and Foreign Trade Studies, 15(1), 23–40. DOI: https://doi.org/10.1108/JCEFTS-12-2020-0070
Koveos, P. E., & Tang, L. (2007). China and India: A tale of two entrepreneurial giants. Journal of Developmental Entrepreneurship, 12(4), 377-381. DOI: https://doi.org/10.1142/S1084946707000794
Lederman, D., & Maloney, W. F. (2003). ‘Trade structure and growth’ Policy Research Working Paper No. 3025. World Bank. DOI: https://doi.org/10.1596/1813-9450-3025
Long, C., & Zhang, X. (2012). Patterns of China's industrialization: Concentration, specialization, and clustering. China Economic Review, 23(1), 54–67. DOI: https://doi.org/10.1016/j.chieco.2011.09.002
Melitz, M. J. (2003). The impact of trade on intra-industry reallocations and aggregate industry productivity. Econometrica, 71(6), 1695–1725 DOI: https://doi.org/10.1111/1468-0262.00467
Prabhakaran, G., & Nedumaran, G. (2022). Trade balance and growth of Indian agriculture exports of cashew in India. Maayan International Journal of Commerce (MIJCOM), 1(1), 65-72.
Prasad, A., Refass, S., Saidi, N., Salem, F., & Shepherd, B. (2023). Global Economic Diversification Index 2023. Global Economic Diversification Index Series.
Vahalík, B. (2015). Analysis of export diversification development of the European Union and BRICS countries. Central European Review of Economic, 18(18), 59-69.
Vivoda, V. (2019). LNG import diversification and energy security in Asia. Energy Policy, 129, 967-974. DOI: https://doi.org/10.1016/j.enpol.2019.01.073
Wani, N. U. H., Rahman, A., & Grover, V. (2023). Regional Trade Expansion Opportunities in Central and South Asia: Exploring Trade Complementarity, Diversification, and Similarity. Cogent Economics & Finance, 11(1), 236-346. DOI: https://doi.org/10.1080/23322039.2024.2363461
Woerheide, W., & Persson, D. (1993). An index of portfolio diversification. Financial Services Review, 2(2), 73-85. DOI: https://doi.org/10.1016/1057-0810(92)90003-U
Wu, Y., & Chen, C. (2021). The impact of China’s outward foreign direct investment on trade intensity with Belt and Road countries. Emerging Markets Finance and Trade, 57(6), 1773-1792. DOI: https://doi.org/10.1080/1540496X.2019.1646124
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Manisha Devi, Lalit Sharma
This work is licensed under a Creative Commons Attribution 4.0 International License.
With the licence CC-BY, authors retain the copyright, allowing anyone to download, reuse, re-print, modify, distribute, and/or copy their contribution. The work must be properly attributed to its author.
It is not necessary to ask for further permission from the author or journal board.
This journal provides immediate open access to its content on the principle that making research freely available to the public supports a greater global exchange of knowledge.
