an analysis for india and china - icrier

In the science based manufactures category as classified by the OECD system,
photographic apparatus, equipment and supplies and optical goods dominates followed
by medicinal and pharmaceutical products and professional, scientific and controlling
instruments and apparatus both, with almost the same number of commodities. A smaller
number is found in the category of office machines and automatic data processing
machines. (Refer Appendix Table A.19 and A.20).
Table 7.8 : Top science based manufactures in which China is advantageously
placed
Rank SITC Description
1 88 Photographic apparatus, equipment and supplies and optical goods, n.e.s.; watches
and clocks
2 54 Medicinal and pharmaceutical producrs
3 87 Professional, scientific and controlling instruments and apparatus, n.e.s.
4 75 Office machines and automatic data-processing machines
Factor Intensity Analysis at the Three Digit Level
Comparative Advantage based on ETA Classification
According to the ETA classification system, of the 1631 SITC manufactured
commodities where China enjoys comparative advantage in the world market, 660
commodities are unskilled labor intensive(ULI), 600 are technology intensive, 334
commodities are human capital intensive and 94 are natural resource intensive. The
maximum advantage for China in 2003 lies in the category of ULI manufactured goods.
In comparison with 2000, the number of technology intensive commodities register an
increase while that in the category of ULI fall in 2003.
Table 7.9 : China’s comparative advantage in terms of factor Intensity based on
ETA
2000 2003
Human Capital 350 334
Natural resource 97 94
Technology 575 600
Unskilled labour 674 660
Unclassified 48 45
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