Emergence of China and India in the New Millennium: Will it Facilitate Market Access for LDCs and Developing Countries?
Abstract: China and India have emerged as highly dynamic economies in recent years. In the Asian region their growth and economic expansion has generated its own complementarities. The paper has empirically shown that surge in the exports of these two countries have significantly contributed to their overall economic growth. Towards this end, both the countries have relied on LDCs and developing countries for their imports and on markets of industrialised economies for exports. The import dependence of India and China is mostly on the industrial intermediate sector, which is critical for their exports. It is advantageous for LDCs and developing countries to closely tie up with these growing economies to get in to their fast expanding markets, but the process is not automatic. Developing countries, particularly LDCs, have to adopt long term strategies to concretise their economic relationship with these two countries to secure persistent market access. Supply and technology constraints in LDCs and other countries may be addressed explicitly, and relevance of these two countries as suppliers of FDI and technology is examined. India and China have made steady progress in frontier technologies such as ICT and biotechnology, and they may provide easy access to these technologies to LDCs and other developing countries.