Production networks in China and India : a comparative analysis
Document Type
Journal article
Source Publication
Economic Change & Restructuring
Publication Date
3-1-2013
Volume
46
Issue
1
First Page
45
Last Page
69
Keywords
India, South Asia, China, Production hubs
Abstract
In this paper, we examine and compare the two important production hubs in Asia: China and Greater China and India and South Asia. We show that in China, Hong Kong and Taiwan, manufacturing trade has continued to be highly relevant, with trade in parts and components growing in importance. In contrast, in India, Pakistan and Sri Lanka, trade in parts and components remain limited. We then calculate various revealed comparative advantage (RCA) indices, which China having more components with RCA values exceeding one. Some of the most important components exported by China include electronic parts and telecommunication parts. One explanation is to why India is relatively weak in parts and components trade is that India is strong in service trade. Other reasons may be related to better port infrastructure, higher research and development intensity and higher educational enrollments in China.
DOI
10.1007/s10644-012-9133-4
Print ISSN
15739414
E-ISSN
15740277
Publisher Statement
Copyright © Springer Science+Business Media New York 2012
Access to external full text or publisher's version may require subscription.
Full-text Version
Publisher’s Version
Language
English
Recommended Citation
Fung, K. C., Hwang, H.-C., Ng, F., & Seade, J. (2013). Production networks in China and India : a comparative analysis. Economic Change & Restructuring, 46(1), 45-69. doi: 10.1007/s10644-012-9133-4