Emerging Giants The Economic Rise of China and India

EmergingGiants: The Economic Rise of China and India

Institution’sName

EmergingGiants: The Economic Rise of China and India

Itis an irrefutable fact that the countries of India and China havearisen to the level of world’s most influential economies. Theireconomic contribution to the global GDP has had a tremendous impacton their economic progress. In essence, it is evident that manyfactors have been consolidated to make the trade in these countries asuccess, and to pitch them at a good position to transact businesswith other nations. The discussion is an analysis of the exports fromChina and India to Canada in 1993 and 2015 (Smith, 2016). Theeconomic development of China and India is based on domesticproduction.

Analysisof the Exports from China and India in 1993

Itis observable that in the year of 1993, the products China and Indiaexported to Canada were low skilled manufacturing goods. I classifythese products in this category because I consider the inputsinvested into their production. In 1993, China and India exportedmostly clothing to Canada. It required physical capital because theyused sewing machines in producing these goods. Additionally, humancapital was necessary, even though semi-skilled. It is apparent thatmost of the products that were exported to Canada from China andIndia were goods that did not require a particular expertise toproduce. The data on these exports reveal that the products exportedin 1993 from China and India to Canada were low skilled manufacturinggoods.

Analysisof Exports from China and India in 2015

Inthe year 2015, they were high skilled manufacturing goods. The goodsexported in 2015 were more sophisticated and required expertise inspecific fields to produce the kind of products China and Indiaexport. For instance, Petroleum oils from India or China’sTelephones for cellular networks required an elaborate expertise toproduce.

Itis critical to confirm that the resource availability in a countryaffects its economic development. However, that is not to indicatethat the resource availability in itself will ensure growth becauseit will indeed depend on other factors such as human capital,physical capital and so on (Liu et. Al., 2015).

Ina nutshell, the determination of the sophistication involves, usingGDP per capita, PPP from World Development Indicator of the WorldBank. The value is divided by the quantity to get unit value for eachcountry product observation and calculate the relative unit value asa country’s unit value divided by the export share weighted averageunit value of the product of all its existing exporting countries(Jarreau and Poncet, 2012). Mainly, I observe that in the recentupgrading of China’s exports, it is not restricted to foreignentities but entails domestic producers (Yu. and Hu., 2015).

Conclusion

Decisively,the exports from China and India to Canada have displayed an upgradein sophistication. The two countries produced goods that involvedhigh-skilled manufacturing in 2015. The difference in export in theyear 1993 and 2015 reveals the growth that has been witnessed overthe years in China’s and India’s economic development.

Reference

Jarreau,J., &amp Poncet, S. (2012). Export sophistication and economicgrowth: Evidence from China. Journalof development Economics,97(2),281-292.

Liu,Y., Mao, L., Li, J., Shi, G., Jiang, S., Ma, X., … &amp Feng, H.(2015). Resource availability differentially drives communityassemblages of plants and their root-associated arbuscularmycorrhizal fungi. Plantand soil,386(1-2),341-355.

Smith,T. (2016). of Capital. TheCirculation of Capital: Essays on Volume Two of Marx’s Capital,67.

Yu,C., &amp Hu, X. (2015). Sophistication of China`s ManufacturedExports and Determinants. TransnationalCorporations Review,7(2),169-189.

DataAppendix

Ihave removed data from:

Canadian Imports

Products

Top 25 Products (HS6 Codes)

Origin

India

Destination

Canada

Period

Specific Year(s): 1993

Units

Value in Thousands of Canadian Dollars

1993

620520 – Mens/Boys Shirts – Woven – Cotton

21605.39

620630 – Womens/Girls Blouses, Shirts and Shirt-Blouses – Woven – Cotton

15779.83

570110 – Carpets – Wool/ Fine Hair – Knotted

11991.9

610910 – T-Shirts, Singlets and Other Vests – Knitted – Cotton

9640.697

080130 – Cashew Nuts – Fresh or Dried, Whether or Not Shelled or Peeled

8806.025

610831 – Womens/Girls Pyjamas and Nightdresses – Knitted – Cotton

6356.937

Source: Trade Data Online (accessed: October 26, 2016)

Canadian Imports

Products

Top 25 Products (HS6 Codes)

Origin

India

Destination

Canada

Period

Specific Year(s): 2015

Units

Value in Thousands of Canadian Dollars

2015

300490 – Medicaments Nes – in Dosage

191675.1

271019 – Petroleum Oils and Oils from Bituminous Minerals, O/T Crude, O/T Light, and Preparations

160482.3

030617 – Other Shrimps and Prawns

121668.4

711319 – Articles of Jewellery – Precious Metals (Other than Silver)

118095.7

710239 – Diamonds – Non-Industrial – Worked – Not Mounted or Set

117871.5

271012 – Light Oils and Preparations

100496.2

Source: Trade Data Online (accessed: October 26, 2016)

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