TY - JOUR
T1 - Production networks in China and India : a comparative analysis
AU - FUNG, K. C.
AU - HWANG, Hsiang-Chih
AU - NG, Francis
AU - SEADE, Jesús
PY - 2013/3
Y1 - 2013/3
N2 - 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.
AB - 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.
KW - China
KW - India
KW - Production hubs
KW - South Asia
UR - http://commons.ln.edu.hk/sw_master/3142
UR - http://www.scopus.com/inward/record.url?scp=84874949928&partnerID=8YFLogxK
U2 - 10.1007/s10644-012-9133-4
DO - 10.1007/s10644-012-9133-4
M3 - Journal Article (refereed)
SN - 1573-9414
VL - 46
SP - 45
EP - 69
JO - Economic Change and Restructuring
JF - Economic Change and Restructuring
IS - 1
ER -