REVEALED COMPARATIVE ADVANTAGE:AN ANALYSIS FOR INDIA AND CHINA

Amita BatraZeba Khan

AUGUST 2005

The views expressed in the ICRIER Working Paper Series are those of the author(s) and do not necessarily reflect those of the Indian Council for Research on International Economic Relations (ICRIER).

Contents

List of Tables ......................................................................................................................1List of Figures.....................................................................................................................1Foreword............................................................................................................................. i1 Introduction............................................................................................................12 Objectives................................................................................................................23 Selective Review of Literature ..............................................................................34 Measuring Revealed Comparative Advantage....................................................55 Revealed Comparative Advantage -The Analysis..............................................6

5.1India........................................................................................................................6

5.1.1Sector-wise................................................................................................................7

5.1.2Commodity-wise .......................................................................................................9

5.2China ....................................................................................................................10

5.2.1Sector-wise...............................................................................................................10

5.2.2Commodity-wise ......................................................................................................12

6 Inter-temporal Variation in Revealed Comparative Advantage: 2000-2003 .14

6.1India......................................................................................................................14

6.2China ....................................................................................................................17

6.3Spearman Rank Correlation based Analysis ........................................................19

6.3.1India..........................................................................................................................20

6.3.2China ........................................................................................................................21

6.4India-China: A Comparative Analysis .................................................................23

7 Revealed Comparative Advantage According to Factor Intensity: Manufacturing Sector..........................................................................................27

7.1Methodology ........................................................................................................27

7.2India......................................................................................................................28

7.3China ....................................................................................................................34

7.4India-China: Comparative Analysis .....................................................................39

7.4.1Factor Intensity.........................................................................................................39

7.4.2Degree of Export Competition .................................................................................43

8 Main Findings and Conclusions .........................................................................47

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