The Research On The International Competitiveness Of Agricultural Product Between India And China

Both situated in Asia, China and India, the largest two developing countries in theworld, are at similar level of economic development. The two countries sharesimilarities in such aspects as geographical locations, natural resources,factors ofagriculture production, technological levels and advancement in agriculturaltechnology. All these factors enable China and India to play an important role in theproduction and trade of produce in the world market, demonstrating that they willencounter similar opportunities and challenges in the international trade of produce.This paper was based on the relativity theory of international trade, based on thecurrent situation of import and export trade of agricultural products between China andIndia, analyzed the power of international competitive of two countries byinternational market share, competitive advantage index, revealed comparativeadvantage index. Est. researched the international competitiveness of major agricultureproducts between two countries in recent years. Then, the paper based on CMS modeland Michael Porter diamond model, using the year of1997-2011related indicators dataof the two countries, analyze the factors that affecting international competitivenessbetween two countries, those factor including agriculture nature resources, agricultureeconomic development, agriculture fund investment, technology investment, laborinvestment, government export policies, the result of research showed:(1)From theinternational market share, the position of China’s agricultural products in theinternational trade is superior than India’s, But from the competitive index andrevealed comparative advantage index, the overall competitiveness of China’sagricultural products is lower than India’s. Meanwhile, the internationalcompetitiveness of China’s agriculture products tends to decrease.(2)The FI, TI, NRhave positive impact on China’s agriculture product of international competitiveness,while the LI, TP, AP and ETR have negative impact.(3)The FI, TI, TP and NR havegreat influence on China’s agriculture product of international competitiveness， theother’s does little.According to the above findings, this thesis attempts to give suggestions on how toimprove the competitive powers of China’s produce from the perspectives of increasingfinancial input, optimizing the structure of produce exportation, developing intensivefarm clusters, reforming importing and exporting policies, adjusting the production ofproduce and the strategies.