Sino-Indian Marginal Intra-industry Trade and Revealed Symmetric Comparative Advantage

This paper calculates indicators for inter-industry trade and revealed symmetric comparative advantage under Standard International Trade Classification (SITC) 3-digit groups to analyze Sino-Indian trade. It is concluded that Chinese products that have comparative advantage in the Indian market are also high in intra-industry trade. This fact fully indicates that both countries, in light of their respective strategy for economic development, have similar preference in industrial development, making their bilateral trade mainly intra-industry trade, which is gathering momentum.