an analysis for india and china - icrier

Table 5.5 : China: Top ten sectors based on RCAI
Rank HS Code Sector
1 46 Manufactures of plaiting material, basketwork, etc.
2 67 Bird skin, feathers, artificial flowers, human hair
3 66 Umbrellas, walking-sticks, seat-sticks, whips, etc
4 42 Articles of leather, animal gut, harness, travel goods
5 50 Silk
6 95 Toys, games, sports requisites
7 65 Headgear and parts thereof
8 64 Footwear, gaiters and the like, parts thereof
9 63 Other made textile articles, sets, worn clothing etc
10 86 Railway, tramway locomotives, rolling stock, equipment
Within the sectors (HS-2 digit), we have further delineated the comparative
advantage in the world market for China at the commodity level (HS-6 digit). A total of
1828 commodities are identified in this manner. Out of these, the maximum number of
commodities where China holds comparative advantage in the world market are observed
in the electrical and electronic equipment with 129 commodities, closely followed by
organic chemicals and articles of apparel, not knit/crocheted with the number of
commodities being 118 and 111 respectively 7 . Sectors like articles of apparel,
knit/crocheted and inorganic chemicals also show significant presence in terms of
number of commodities with comparative advantage in the world market. Articles of
apparel knit/crocheted or not knit/crocheted (i.e. HS 61 and 62) together contribute
maximum number of commodities and 11.2% share in the total comparative advantage
identified for China in the world market.
Table 5.6 : China: Top ten sectors based on the constituent number of commodities
with RCAI>1
Rank HS Code Sector
*
RCA f %
Contribution to
total RCA
1 85 Electrical, electronic equipment 129 7.1
2 29 Organic chemicals 118 6.5
3 62 Articles of apparel, accessories, not knit or crochet 111 6.1
4 28 Inorganic chemicals, precious metal compound, isotopes 96 5.3
5 61 Articles of apparel, accessories, knit or crochet 93 5.1
6 52 Cotton 91 5.0
7 84 Nuclear reactors, boilers, machinery etc 88 4.8
8 55 Manmade staple fibres 71 3.9
9 73 Articles of iron or steel 63 3.4
10 63 Other made textile articles, sets, worn clothing etc 49 2.7
# Organic chemicals does not enjoy comparative advantage in the world market at the aggregate level, (RCAI:
HS-291
7 A detailed list of sector-wise distribution of commodities in which China enjoys advantage in world
market in 2000 and 2003 is presented in Appendix Tables A.6 and A.8 respectively.
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