Examining Intra-Industry Trade between India & China: Is India on the Right Track? - Theoretical Economics Letters

TEL > Vol.9 No.6, August 2019

Examining Intra-Industry Trade between India & China: Is India on the Right Track? ()

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Download as PDF (Size: 1932KB) PP. 1834-1851

DOI: 10.4236/tel.2019.96117 1,682 Downloads 4,686 Views Citations

Author(s)

Rishi Dwesar¹, Ankit Kesharwani^2*

Affiliation(s)

¹Department of Marketing & Strategy, IBS Hyderabad (A Constituent of the ICFAI Foundation of Higher Education), Hyderabad, India.
²Department of Marketing, Indian Institute of Foreign Trade (IIFT), New Delhi, India.

ABSTRACT

Massive growth in Industrialization and Gross Domestic Product (GDP) and a stronger relation between India and China have led to an increase in bilateral trade between the two countries. This paper examines the intensity of Intra-Industry Trade (IIT) between India and China using A-Index over a two-decade period (1999 to 2018). Further, the study examines trade patterns of commodities traded between the countries and how have they changed over the years. The study used data of 99 commodities and conducts a decade wise comparison. Recent developments and policy changes on the bilateral trade front between India and China have also been discussed. The research has important implications for policymakers, economists and business involved internal trade.

KEYWORDS

India-China Bilateral Trade, Intra-Industry Trade, India-China Trade Deficit

Share and Cite:

Dwesar, R. and Kesharwani, A. (2019) Examining Intra-Industry Trade between India & China: Is India on the Right Track?. Theoretical Economics Letters, 9, 1834-1851. doi: 10.4236/tel.2019.96117.

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