A Study On Sino-Indian Trade Imbalance Structure Based On Value Added Trade

China and India are the two emerging economies in the world today.The economic development of the two countries plays an important role in promoting world economic growth.With the rapid development of the current economy,the scale of bilateral trade between China and India has continued to expand,and the problem of trade imbalance has become increasingly prominent.As a result,trade frictions between the two countries have continued,which has seriously affected the economic and trade development and even bilateral relations between the two countries.This paper is based on the value-added trade to study the trade imbalance structure of the two countries,which can not only correct the error of traditional trade statistics,but also objectively reveal the current situation of Sino-India trade imbalance,so that it has important theoretical and practical significance.This paper begins with the related concepts,defines the concept of trade imbalance and trade structure,and discusses the theoretical basis of the trade imbalance structure.Secondly,based on the value-added trade,this paper studies the total structural characteristics of Sino-Indian trade imbalance,the industry characteristics of good trade imbalance and the industry characteristics of service trade imbalance.Thirdly,the principal factors analysis method and multiple linear regression analysis method are used to empirically study the main factors of the imbalance between Sino-India trade in goods and services.Finally,it summarizes the structural characteristics of Sino-Indian trade imbalance and the implications for solving the trade imbalance problem.This paper finds that,from the perspective of value-added trade,China is in a trade surplus as a whole,in which trade in goods has a large trade surplus and trade in services has a smaller trade deficit.However,India is in a trade deficit as a whole,in which trade in goods has a large trade deficit,and trade in services has a smaller trade surplus.In the empirical study of the influencing factors,the effects of domestic factors and international division of labor on the bilateral trade imbalance are considered.The study found that the position gap of global value chain and the participation gap of global value chain in the two countries are the main factors leading to the imbalance of trade in goods and the imbalance of trade in services.Therefore,improving the status of the country in the international division of labor and adjusting the trade imbalance structure are the fundamental ways to solve the trade imbalance between China and India.