- P-ISSN2287-1608
- E-ISSN2287-1616
- KCI
Bilateral Trade Potential of IP Sensitive Products: A Comparative Study of India and China
Arushi Jain (Goldman Sachs)
Sidheswar Panda (Kalinga Institute of Industrial Technology)
Abstract
This study examines performances and varieties of export of IP sensitive products across emerging countries, namely, India and China by utilizing 6-digit disaggregated product-level export data. Further, this study constructs trade margins — extensive and intensive margins to understand trade potential and different trade patterns, specifically, exporters’ productivity, product diversification, and volume of trade during 2007-2016. This study finds India’s performance is comparable with China at the extensive margin though the gap between India and China is very wide in terms of the total value of exports and the intensive margin. China majorly exports more expensive electronics and manufacturing-related products as opposed to relatively cheaper medicinal and synthetic products, the total value of exports from China to the rest of the world is much higher than that of India. This study suggests that India is exporting IP-sensitive products to lower-income countries sufficiently, but the IP-sensitive exports to higher-income countries are still lagging.
- keywords
- Exports, IP-sensitive products, Trade margins, Product-level data, Technological innovation
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