A Comparative Analysis of China's and India's Recent Export Performances

The implication of this study is that India's reform measures need to be bolstered effectively to catch up and to overtake China.

Asian Economic Papers
Winter 2008, Vol. 7, No. 1, Pages 1-28
Posted Online February 14, 2008.
(doi:10.1162/asep.2008.7.1.1)
A Comparative Analysis of China's and India's Recent Export Performances*
Kaliappa Kalirajan
Foundation for Advanced Studies on International Development and National Graduate Institute for Policy Studies, 7-22-1 Roppongi, Minato-ku, Tokyo 106-8677, Japan, kpkalirajan@yahoo.com
Kanhaiya Singh
National Council of Applied Economic Research, Parisila Bhawan, 11, Indraprastha Estate, New Delhi 110 002, India

Drawing on the convergence theory, one would expect that the export performance of India (a latecomer to integrating with the global economy) would be at least on par with that of China because China's performance has happened as predicted by the theory.

This study, using performance measures based on the endogenous growth theory that internalizes the ability to export the maximum possible exports under the determinants of exports including the existing behind the border and beyond the border constraints, shows that India's export performance is still far behind that of China. The implication of this study is that India's reform measures need to be bolstered effectively to catch up and to overtake China.

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