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Research Paper | Economics | China | Volume 6 Issue 3, March 2017

Empirical Analysis of Sino-India Merchandise's Trade Complementarity and Potentiality along One Belt and One Road

Xiaoling Kang | Ying Zhang

Abstract: The trade between China and India becomes the heated topic because of proposals of One Belt and One Road and BCIM economic zone corridor. This paper uses Trade Intensity Index (TII), Revealed Comparative Advantage Index (RCA), Trade Complementarity Index (TCI), Trade Specialization Coefficient (TSC) to study the complementarity of merchandise trade between India and China and applies gravity model for the trade potential calculation between China and India. The result indicates that complementarity and competitiveness co-exist in the field of trade and that actual trade value between them is far less than the estimated value, so there is broad space for India and China to explore.

Keywords: TII, RCA, TCI, TSC, Gravity Model

Edition: Volume 6 Issue 3, March 2017,

Pages: 1076 - 1080