Share This Article:

Research on the Factors of Trade Growth between China and India
—An Empirical Analysis Based on Constant Market Share Model

Abstract Full-Text HTML XML Download Download as PDF (Size:287KB) PP. 569-577
DOI: 10.4236/jssm.2015.84057    2,582 Downloads   3,038 Views   Citations

ABSTRACT

Based on 2000-2011 trade data, this paper decomposes the trade growth factors between China and India by using Constant Market Share model (CMS). The conclusion shows that scale effect is always a major factor; the scale effect of the exports growth from China to India is manifested in the industrial finished or semi-finished products, and the competitive effect of primary products is even more significant; however, the growth of economies of scale of Indian exports to China mainly concentrates on primary products, and the competitive effect is the main factor that is restricting the growth of primary products exports, while the competitive effects of industrial finished products increase export. Adjusting the trade structure in order to meet the changes of import demand is an important means to enhance the competitiveness of export products and expand the scale of bilateral trade development. In addition, China and India Free Trade Agreement strategy should be put on the agenda, and the economic integration mechanism should be actively built.

Conflicts of Interest

The authors declare no conflicts of interest.

Cite this paper

Xiao, Y. , Zheng, X. , Hu, L. and Chen, Q. (2015) Research on the Factors of Trade Growth between China and India
—An Empirical Analysis Based on Constant Market Share Model. Journal of Service Science and Management, 8, 569-577. doi: 10.4236/jssm.2015.84057.

References

[1] Wang, Y.L. (2004) Observe the Development Perspectives of Clothing Textile Trade between China and India from Terms of Competitiveness and Complementarity. World Economy Study, 8, 59-63.
[2] Tan, J.R. (2004) Comparative Study of Livestock Product Trade between China and India. International Trade Problem, 11, 39-42, 54.
[3] Guo, J.H. (2006) A Comparative Study of Foreign Trade System Reform between China and India. Contemporary Asia-Pacific Studies, 2, 18-23, 37.
[4] Zhu, J. and Chen, X.Y. (2006) The Potential Analysis of Agricultural Goods and Its Complementarity between China and India. International Trade Problem, 1, 40-46.
[5] Zhang, M.Q. (2004) India’s Economic Development Characteristics and Its Future. Journal of Contemporary International Relations, 10, 11-13.
[6] Ye, D.L. (2005) China and India Trade Development Potential and the Trade Policy Correction Analysis. Journal of International Economic and Trade, 5, 32-35.
[7] Xu, F. (2005) Prospect of China-India Trade and Economic Cooperation under the Background of Economic Globalization Analysis. Journal of South Asian Studies Quarterly, 2, 118-122, 126.
[8] Ni, X.Q. and Wang, X.Y. (2006) Try to Talk about the Development of the China-India Trade Cooperation Characteristics and Influencing Factors of. Journal of South Asian Studies Quarterly, 4, 91-97, 126, 127.
[9] Yang, W.W. and Ni, X.Q. (2007) Problems and Countermeasures of China-India Trade and Economic Cooperation Status. Journal of Social Science, 9, 16-24.
[10] Chen, J.D. And Tang, L. (1997) Present Situation and the Reason for Restricting the Development of Bilateral Trade between China and India Trade. Journal of South Asian Studies Quarterly, 2, 2, 14-19.
[11] Li, L. and Shao, B.J. (2008) The Establishment of the Sino-Indian Free Trade Area of China and the World Economic Impact Study. Journal of World Economic Studies, 2, 22-28, 86, 87.
[12] Yang, H.L. and Zhang, Z.H. (2012) The Analysis of Trade Expansion Effect of FTA, Based on the Gravity Model of Trade between China and India. Journal of Hebei University (Philosophy and Social Sciences Edition), 5, 4-7.
[13] Luo, W.B. and Zhou, J.T. (2006) The Obstacle and Countermeasure of Building Sino-Indian Free Trade Area. Journal of South Asian Studies Quarterly, 1, 5, 104-107.
[14] Yang, W.W. and Dai, J.T. (2006) For the Construction of Rational Understanding of Sino-Indian Free Trade Area. South Asian Studies, 1, 17-21.
[15] Zhang, Y.Y. and Jiang, L. (2006) Strategic Thinking for the Development of Sino-Indian Economic Trade Relations in the New Period. Journal of Contemporary Asia Pacific, 8, 12-20.

  
comments powered by Disqus

Copyright © 2018 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.