A Study on the Trade Relationship between China & Mongolia: With Special Focus on Revealed Comparative Advantage (RCA)

Abstract

Examining The Composition, Strength, Structure, Comparative Advantage, And Disadvantage Of Bilateral Commerce Between China And Mongolia From 2001 To 2020 Is The Main Goal Of This Article. The Normalised Revealed Comparative Advantage Index (Nrca) Is Used In The Study To Calculate The Composition And Structural Change Of Trade. Although The Nature Of The Trade Between The Two Nations Is Relatively Complementary, The Report Finds That The Potential For Trade Has Significantly Grown Over The Course Of The Study Period. Another Interesting Observation Is That China Imports A Significant Amount Of Goods From Mongolia, Which Has A Lot Of Mineral Resources. Due To China’s Preference For High-Tech Items And Comparative Advantage In Labor-Intensive Products, Technology Products Are Starting To Gain Popularity.
The Majority Of China’s Exports To Mongolia Are Labor-Intensive, Low-Tech, And Low-Value Goods. To Meet The Demands Of Domestic Industry And Daily Living, Mongolia Imports These Labor-Intensive Goods, Enabling The Growth Of A Mutually Advantageous Partnership Between The Two Sides. In Addition, Only The Top 10 To 15 Commodities Accounts For The Majority Of China’s Overall Imports From Mongolia, And The Percentage Share Of Other Goods Has Remained Under 1% Throughout Time.