Title

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

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Full-text Version

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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