EconStor >
ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/46571
  
Title:The rapidly deepening India-China economic relationship PDF Logo
Authors:Whalley, John
Shekhar, Tanmaya
Issue Date:2010
Series/Report no.:CESifo working paper: Trade Policy 3183
Abstract:In this paper we focus on the rapidly deepening bilateral India-China economic relationship. Each is deeply integrating into the global economy through trade and FDI inflows, China is seen as primarily manufacturing-lead growth with India as service-lead growth (see Rodrick & Subramanian (2006)). An alternative view is that India is effectively a lagged version of China, and the two have to be considered a joint global presence. India and China are thus viewed in the literature in different comparative mode. That their bilateral closeness is deepening is evident in a number of areas. On the trade front, India-China bilateral trade has increased by a factor of 33 between 1995 and 2007, and this growth has occurred at an accelerating rate. This compares with a 7 fold increase in the China's overall trade this period. With bilateral FDI the increase is even more dramatic, around 90 fold over the same period, but admittedly from a small base. And while strategic issues remain between India and China since they are complicated by the relationships of each other with Pakistan, on bilateral economic policy coordination there has also been considerable joint movement towards joint positions. There has been a feasibility study for a possible India-China FTA. They have also jointly agreed a bilateral pact on climate policy underpinning their joint negotiating stance in Copenhagen in 2009 on a post Kyoto global climate regime; and in international forums such as the WTO (and specifically in the Doha Round) both countries have supported each others' positions, and especially so in key meetings such as in July 2008 in Geneva.
Subjects:India
China
deepening
trade
FDI
policy coordination
JEL:F10
Document Type:Working Paper
Appears in Collections:CESifo Working Papers, CESifo Group Munich

Files in This Item:
File Description SizeFormat
638963591.pdf186.8 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/46571

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.