661. Technology Trade in India-China Relations: Divergent Dynamics and Implications
- Author:
- Varaprasad S. Dolla
- Publication Date:
- 05-2011
- Content Type:
- Journal Article
- Journal:
- Journal of International Affairs
- Institution:
- School of International and Public Affairs, Columbia University
- Abstract:
- The recent and growing technology trade among India, China and the rest of the world is punctuated with distinctive trajectories and dynamics. Propelled by the simultaneous phenomena of impressive economic growth and increasing technological capabilities, the two countries under review have made a paradigmatic shift from being predominantly technology-importing countries in the 1980s to technology-exporting countries at the beginning of the 21st century. The consequent outcome of this process is the changing composition of technology exports wherein the share of technology-intensive products is increasing in their overall export baskets, which is a clear indication of the two countries' growing technological prowess. A key element in this growth is that the technology component in the overall bilateral trade between India and China is increasing both in volume and diversification. A considerable part of China's exports to India constitute technology-intensive products, but primary goods dominate Indian exports to China, revealing China's edge over India. This is likely to change as India strengthens its comparative advantage in software and begins to catch up with China in sectors such as manufacturing. These developments have several implications not only for their economies, but also for those in both developed and developing countries.
- Political Geography:
- China and India