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Bilateral trade between C hina and C anada: trends, patterns, and comparisons
Author(s) -
Fen Su,
Latif Ehsan
Publication year - 2014
Publication title -
asian‐pacific economic literature
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.232
H-Index - 21
eISSN - 1467-8411
pISSN - 0818-9935
DOI - 10.1111/apel.12074
Subject(s) - complementarity (molecular biology) , economics , bilateral trade , international trade , international economics , biology , geography , genetics , archaeology , china
Using data from the U nited N ations C omtrade database Standard International Trade Classification Revision III , this study examined major trends of and changes in the bilateral trade between C anada and C hina. It investigated issues related to trade intensities, intra‐industry trade, comparative advantages, and trade complementarity in the two countries. The results showed that there has been a significant increase in bilateral trade between the two countries over the past decade or so. However, the estimated trade intensity indices suggest that C anada and C hina are trading less than they should. On the other hand, analysis using revealed comparative advantage indices suggests that there is no overlap in comparative advantage between two countries. Further, the trade complementarity indices show that C anada's export structure is compatible with C hina's import structure and at the same time, C hina's export structure is also compatible with C anada's import structure. Thus, there is a high potential to increase bilateral trade between C anada and C hina.