Comparative Research On Departure From The Trade Patterns Between China And India

With the opening up of the Indian economy, rapid economic development andthe development of trade, India’s trade patterns gradually been of concern. India’strade patterns and China are similar to a large extent, especially in factor endowmentsand industrial structure. India and China are developing countries, the relatively lowlevel of technology, and low-technology manufactures a larger proportion of the trade;India and low-technology manufactures trade patterns are deviated from. At the sametime the two countries in a positive departure from the causes of similarities anddifferences. Pattern of trade from India back to the analysis of the circumstances andreasons for China to improve low-technology manufactures production efficiency andimprove textile competitiveness has a major role in enlightening.Since this paper to study the trade patterns to deviate from the perspective of thefirst trade patterns to deviate from the explanation. When a country has a comparativeadvantage in the production of a product (the paper uses symmetric revealedcomparative advantage index measure), then it should be reflected in foreign trade,the net import capacity (the text using the net export rate measure). If you should haveadvantages based on net export capacity, then it is called a negative divergence. If theactual net export capacity than it should have comparative advantage, then it is calledbeing deviated from.There is a positive departure from the study found that India’s low-technologymanufactures. Greater than they should have the comparative advantage of India inthe low-technology manufactures the actual export capacity. There are also positivedeparture from the tendency in low-technology manufactures trade patterns.Symmetric revealed comparative advantage index, the net export rate index, absolutetrade patterns to deviate from the tendency of the index and the relative trade patternsto deviate from the propensity score analysis, we can see that India and China aresimilar to the top five products are mostly labor-intensive products. Textiles, clothing, footwear positive divergence and to continue an upward trendin recent years. India LT1positive departure from the basic floating in a certain range,little change. Other low-technology manufactures (LT2, ceramics, simple metalcomponents/structures, furniture, jewelry, toys, plastic products,24kinds) from1988to2005, the same being deviated from. But in2005-2007two-year period, a negativedeparture from the situation. Overall2004-2008During this time the Indian tradepatterns deviate from both positive and negative, the basic rationalized; only the2008departure from the rising tendency, need to be to continue to focus on research.Are both extremely abundant labor resources, will have a comparativeadvantage in the production of labor-intensive products. So there are departures arereasonable. India and China, once the development is import substitution-basedeconomy. Import substitution refers to the domestic products instead of imports offoreign products, this will lead to an increase in net exports; also make positivedeparture from the low-technology manufactures. Sino-Indian government policy toencourage exports. Compared to developed countries in the tariff on the levelremained too high. In particular, the Indian Ministry of Commerce, the positiveanti-dumping restrictions on imports to a certain extent. Reached a prize to the limitinto the situation would lead to the emergence of positive divergence.India and China are deviated from the existence of low-technology manufactures.Departure from the show in India and China in low-technology manufactures aredeviated from the means that may be in the production and management there may beinefficient, will be a waste of resources of the high consumption of high export. Theseappear to deviate from the industrial structure needs to be further optimized. China toimprove low-technology manufactures production efficiency and improve textilecompetitiveness, a major inspiration. Especially in the production and management ofthe textile and clothing industry to enhance its competitiveness, increase value-addedproducts and policy makers on the revelation.The innovation of this paper is reflected in the following three aspects: first, thereference model tools-trade mode of departure from the the tendency index-tomeasure India’s trade patterns to deviate from the situation, and on this basis to analyze the causes. Second, from the angle of departure from the situation of theIndian trade patterns to study the effect of India’s foreign trade policy. Third, thedeparture from the pattern of trade in China and India compared to the same time todraw inspiration...