Research On The Competitiveness And Complementarities Of Sino-Indian Trade

As the largest developing countries in the world, China and India have attracted more and more attention all over the world, which because of the similar economic development, large potential in economics and market. Recent decades have witnessed the significant development of the Sino-Indian trade position. The trade competitiveness and complementarities of the area has received increased attention in academic research. Therefore, this research is very helpful to solve the problems between China and India trade. In this paper, there’s an analysis in the issues of Sino-India trade through competitiveness and complementarities index, and then list the competitive and complementary product in the Sino-India bilateral trade, which can help us provide the improvement of Sino-India trade.In light of such changes in Sino-India trade, the research study provides an empirical assessment of the trade situation using data for the period 2002-2012, with a specific assessment of: trade competitiveness, revealed comparative advantage, export similarity, the trade complementary. The research also assesses the intra-industry trade of both merchandise services between China and India. Trade competitiveness and complementarities are existed simultaneously of the Sino-Indian trade. Compared with China and India, China indicates a more comparative advantage in the merchandise trade, while India has dominated the trade in services. The competitiveness of Sino-Indian trade is predominantly in labor intensive industry and traditional services industry. Complementarities of Sino-Indian trade is existed in primary industry, as well as capital and technology intensive industry. In term of trade in services, the complementarities of Indian export to China is prominent. Since the different developing priority of Chinese and Indian trade, the complementarities of bilateral trade is becoming dominated.