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Assessment of Rice Export Interdependency between China and Vietnam Based on Empirical Approaches

Assessment of Rice Export Interdependency between China and Vietnam Based on Empirical Approaches

Trinh Thi Viet Ha1, Pham Duy Liem2 and Li Shuang1* 

1College of Economics and Management, Department of International Trade, Northeast Agricultural University, Harbin, China; 2Engineering College, Northeast Agricultural University, Harbin, China.

lishuang@neau.edu.cn 

ABSTRACT

In world rice market, China and Vietnam play a vital role, as the largest producer,consumer and exporter. The current study was conducted to analyze the rice export interdependency between these two countries using empirical approaches. The findings of the study show that the pattern of rice trade between China and Vietnam is fluctuated. The trade volume between China and Vietnam is smaller, and the fluctuation of trade is larger, and there is a large space for the development of rice trade between the two countries. Through further comparison of the comparative advantages of Chinese and Vietnamese rice products showed that the comparative advantage of China’s rice exports is greater in Vietnamese rice markets. Revealed comparative advantage (RCA) index and Relative Trade Advantage Index (RTA) were used to understand the relative competitive advantages of China and Vietnam rice export. The results showed that Vietnamese rice comparative advantage grew steadily in the Chinese market. Overall Sino-Vietnam rice export competition is not strong, it is helpful to reduce trade friction between the two sides. Moreover, there is conducive to the development of bilateral trade cooperation of long-term stability, from another point of view, agricultural products can also strengthen the cooperation. Moreover, complementarity is increasing, through the calculation, Sino-Vietnam trade complementarity index showed an upward trend, which indicates Sino-Vietnam have a potential trade cooperation 

 

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Sarhad Journal of Agriculture (Associated Journal)

September

Vol. 33, Iss. 3, Pages 338-500

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