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

Su Fen and Ehsan Latif

Asian-Pacific Economic Literature, 2014, vol. 28, issue 2, 77-87

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.

Date: 2014
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