an analysis for india and china - icrier

For the 600 commodities classified as technology intensive using the ETA
system, a further delineation into medium and high technology is undertaken using the
hwwa matrix. 49 commodities are thereby identified as high technology and 210 as
medium technology intensive manufactures.
Comparative Advantage based on WDI Classification
According to the more comprehensive WDI system of classification, 112 items
are classified as intensive in high technology and human capital. Within this 49 items are
intensive in physical capital, and 63 items can be classified as intensive in labor capital.
The dominant items in the category of high technology, human and physical capital are
medicinal and pharmaceutical products (SITC-541) and other organic chemicals (SITC-
516). In the category of high technology, human capital and labor intensive goods the
dominant share is of the electrical machinery and apparatus (SITC-778), which is
otherwise classified as medium skill and technology by the ETA. 59 items are classified
as low technology and human capital intensive, of which 21 are intensive in labour.
Musical instruments and parts has a dominant share in this category. Commodities are
almost uniformly distributed across industries like perfumery, cosmetic or toilet
preparations, explosives and pyrotechnics products, internal combustion piston engines,
and radio broadcast receivers. In the category characterized as medium technology,
human capital, and capital intensive comprising of 147 products, SITC-523, i.e. metal
salts and peroxysalts of inorg. has a predominant share of 39 per cent. This is followed
by shares of industries like Inorganic chemical elements, oxides and halogen salts (SITC-
522), tubes, pipes and hollow profiles, and tube or pipe fittings, of iron or steel (SITC-
679), Organo-inorganic compounds, heterocyclic compounds, nucleic acids and their
salts, and sulphonamides, (SITC-515), and Other inorganic chemicals; organic and
inorganic compounds of precious metals (SITC-524). In comparison, medium
technology, human capital and labor intensive category has 198 manufactured
commodities A clear dominance in this case is observed in the tools for use in hand or
machines (SITC-695) dominates this category followed by Household-type electrical and
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