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Bilateral trade between China and Canada: trends, patterns, and comparisons

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  • Su Fen
  • Ehsan Latif

Abstract

type="main"> Using data from the United Nations Comtrade database Standard International Trade Classification Revision III, this study examined major trends of and changes in the bilateral trade between Canada and China. 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 Canada and China 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 Canada's export structure is compatible with China's import structure and at the same time, China's export structure is also compatible with Canada's import structure. Thus, there is a high potential to increase bilateral trade between Canada and China.

Suggested Citation

  • Su Fen & Ehsan Latif, 2014. "Bilateral trade between China and Canada: trends, patterns, and comparisons," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 28(2), pages 77-87, November.
    • Handle: RePEc:bla:apacel:v:28:y:2014:i:2:p:77-87
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    File URL: http://hdl.handle.net/10.1111/apel.12074
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    References listed on IDEAS

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    1. Islam, Sadequl, 2007. "Canada’S Trade Relations With China," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 7(2), pages 79-86.
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    Cited by:

    1. Chaoping Xie & Jianfeng Gao & Jason H. Grant & Sven Anders, 2018. "Examining the Canada–China agri‐food trade relationship: Firms, trading partners, and trading volumes," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 66(4), pages 539-555, December.

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