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N° 2007-19 |
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| November 2007 |
| China and India in International Trade: from Laggards to Leaders? |
Françoise Lemoine
Deniz Ünal |
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| China and India are demographic giants which have become big economic powers before
getting rich. Their rise in international trade has created two symmetric shocks, on the
supply of manufactured goods and the demand of primary goods, contributing to a reversal
in world relative prices. They have kept traditional specialisation in textiles but have
developed new outward-oriented sectors linked to new technology. Foreign firms, through
offshoring and outsourcing, have played a critical part in turning China into a global export
platform for electronic products, and India into a global centre for ICT services. Beyond the
question of their technological catch-up, the challenge is now their quality upgrading,
especially for China. In the two countries, there is a debate about the necessary changes to
make long term growth sustainable. Their successful integration in world trade has not
solved the problem of their overall oversupply of labour, but has accentuated the shortage
of highly-skilled personnel. |
Non-technical summary |
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Résumé
non-technique
en français |
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| Full text |
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| China; India; foreign trade; technology; terms of trade |
Keywords |
| F14; F15; 033; 053; 057 |
JEL classification |
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