WHAT DETERMINES TRADE BETWEEN CHINA AND INDIA DURING THE RECESSION OF 2008–2012?

Despite the international status of China and India rising dramatically in the previous decades, trade between the two countries did not grow accordingly. This paper investigates the determinants of the bilateral trade performance during the period of 2008–2012 from two perspectives: comparative adv...

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Published in:Contemporary Economic Policy Vol. 37; no. 2; pp. 389 - 407
Main Authors: Zhang, Jianhong, van Gorp, Désirée, Ebbers, Haico
Format: Article
Published: Wiley-Blackwell Apr2019
Subjects:
Online Access:View this record in EBSCOhost
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      aug:
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          Zhang, Jianhong
          van Gorp, Désirée
          Ebbers, Haico
        affil:
          Nyenrode Business University, YNUFE, Breukelen, 3621 BG The Netherlands
          Nyenrode Business University, Breukelen, 3621 BG The Netherlands
      su:
        China
        India
        Trends
        Comparative advantage (International trade)
        Exports
      sug:
        subj:
          Trends
          China
          India
          Comparative advantage (International trade)
          Exports
      ab: Despite the international status of China and India rising dramatically in the previous decades, trade between the two countries did not grow accordingly. This paper investigates the determinants of the bilateral trade performance during the period of 2008–2012 from two perspectives: comparative advantage and trade protection. Two cases, Chinese exports to India, and Indian exports to China, are analyzed by using product‐level data. The results suggest that (1) the law of comparative advantage and trade protection explain the pattern of China–India trade, while (2) in a time of crisis, the adverse forces become prominent which explains the declining trend of the bilateral trade.
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    language: English
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