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Bilateral Trade Existing Problems and Countermeasures between China and India

Author: WuGuoAn
Tutor: QiuXun
School: Guizhou College of Finance and Economics
Course: International Trade
Keywords: China and India economic and trade relations trade potential Trade Gravity Model
CLC: F224
Type: Master's thesis
Year: 2009
Downloads: 140
Quote: 1
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Abstract


China and India are both countries with ancient civilizations and the history of exchanges between the two countries can be traced back two thousand years ago. As two important countries in Asia, China and India have a lot of the similar: major regional developing powers in Asia; a long history and splendid civilization; vast population; having experienced Western colonialism of the country’s long-term direct or indirect rule and in the end achieved national independence.In the 21st century China and India are facing with the rise of the national development tasks and challenges. In the last there were mutual peaceful exchanges and a long history of working together between the two countries, but there were fighting each other and the regret experienced the long-term hostilities. Therefore, out of geopolitical considerations, properly handling the relationship between China and India is an important condition for the revitalization and development.In the context of globalization, It is common interest focus of government and people between the two countries and other theory of community how to correctly understand the rise of their own, resolve conflicts, increase consensus, narrow differences, and achieve ever-increasing economic and trade ties with each other, as well as political cooperation, cultural exchanges.The full text is divided into five sections: The first is the introduction, mainly presenting industries of China and India within the meaning of issues and research background to description of research, literature review and content of research methods. The second part is to introduce the status quo of Sino-Indian economic and trade structure and trade. The third part studies the use of the trade such as trade integration of key indicators, the revealed comparative advantage index; analysis of intra-industry trade index of Sino-Indian trade has the development potential of cargo space. The fourth part is to introduce a gravity model analysis of trade between China and the trading partners of the relationship between the volume of bilateral trade, the model analysis and testing, the potential for Sino-Indian trade to the empirical analysis, pointing out the inadequacies of the model and summarize the model role. And the third and the fourth part are the focus of the article. This innovation is to analyze the Sino-Indian trade in complementary products by the combination degree of trade, by the comparative advantage index, by the intra-industry trade index of qualitative; to analyze empirically Sino-Indian trade by the bilateral trade gravity model for testing the trade potential of China and India. In view of these problems the fifth part is to explore the development of countermeasures of the Sino-Indian trade, to propose a number of recommendations from both the macro and micro aspects, and finally to point out that Sino-Indian trade has potential for development.

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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods
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