an analysis for india and china - icrier

ut also according to the stage of processing, and their economic functions in order to
facilitate economic analysis. The HS classification while having the advantage of detail
and dis-aggregation is restricted only to a precise breakdown of the products' individual
categories. For analyzing comparative advantage by factor intensity therefore SITC is a
preferred classification.
As all calculations for RCA in this paper have been done using export data at the
six-digit level of HS classification, as a first step, a concordance of the HS with the SITC
system of classification has been undertaken. Commodities at the HS- 6 level have been
mapped onto the five-digit SITC product classification using the UN COMTRADE
classification registry. The set of five digit SITC commodities thus attained is then
aggregated to three and two digit levels as the product classification by factor intensity is
available only at this level of aggregation.
Factor intensity analysis at the two – digit level of classification has been
undertaken using the UNCTAD, OECD and Anderson and Garnaut (1980) system of
classifications. At the three digit level, the Empirical Trade Analysis (ETA), Williamson
Davidson Institute (WDI) and world matrix of sectoral economic data (hwwa) 9
classification systems have been used. The discussion in this section is based largely on
the UNCTAD at the 2 digit level and ETA and WDI at the 3 digit level of classification
respectively as these are the most comprehensive systems of classification.
7.2 India
As stated in the section 4.1.1, there are 1512 items where India enjoys
comparative advantage in the world market at the HS-six digit code in 2003. All the 1512
commodities are mapped onto the SITC five - digit code. According to the SITC
classification 10 , 112 items are classified in the category of Food and Live Animals and
128 items get classified in the primary category. 1272 items are categorized as
manufactured items. The focus of the analysis in this section is on the 1272 manufactured
9 http://www.hwwa.de/wmatrix/Technical_Description.html (hwwa)
10 SITC-0: Food and Live animals, SITC 1-4: Primary commodities, SITC 5-8: Manufactured items.
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