A Comparative Study On Agricultural Trade Between China And India

Similar levels of economic development, both in Asia, China and India have some similarities in terms of geographic location, natural resource endowment, production conditions and production technology level,so does the market radiation, these factors have determined that China and India are competitive in the export of agricultural products.The Revealed Comparative Advantages Index, Export Similarity Index, Trade Complementarity Index and the Index of Intra-Industry Trade are used in this paper to analyse the competitive and complementary trade relations between China and India. The export product mix and market structure, the similar factors determines that China and India's main trade relation is complementary. In addition, the main form of bilateral trade between China and Inida's agricultural products is the inter-industry trade which mainly based on the difference of resource endowment.In order to prove the influential of different effects to the trade growth of China and India 's agricultural products, CMS model is used to analyse the trade growth from the products and the market perspectively with a two-stage analysis, the study results show that: The Chinese agricultural products' s increasing effect, as well as product mix effect are on the rising; Comprehensive competitiveness effect and the market construce effect are some sort of declining. While the increasing effect and the market structure effect of India agricultural products's exort trade are rising fairly fast, comprehensive competitiveness effect and product competitiveness effect have declined. China's agricultural products export structure tends to spread, while India's is sort of concentrating, in a specific market, the decisive factors for export growth of China and India tend to spread, the competitiveness of China and India in the international market of the overall is declining. The dominant factor of China's agricultural exports to India varies from the increasing effect to thecomprehensive competitiveness effect; While India growth of agricultural exports to China's decisive factor varies from the comprehensive competitiveness to the increasing effect.Research shows that the dominant factor of the China and India agricultural exports growth is the growth of international agricultural market demand, the two countries' overall export competitiveness of agricultural products is not strong, The main bilateral trade form of China and India is the inter-industries which is based on the differential natural resources endowments. The two countries have potential trade cooperation.