Saving, International Trade, and Outsourcing

Due:  October 24, 2:30 p.m.

In this assignment, you will find and analyze data on the major exports of China and India into Canada. You will then try to explain why these countries export these goods.

Dataset: 

Industry Canada Trade Data Online

http://www.ic.gc.ca/eic/site/tdo-dcd.nsf/eng/Home

Background data collection and analysis:

1. Download data on the top 25 products imported into Canadafrom China and India (separately) in 2016. Choose Search by Product, then select Trade Type: Total Imports , Trader: Canada, Trading Partner: Chinaand India(separately), Time Period: Specific Year (2016), Value in: $ Canadian (Current Dollars), Product Options: Top 25 Products (HS6 Codes).

2. Choose five of the top 10 products. Determine whether these are commodities (i.e., agricultural products, fuels, or metals), low-skilled manufactured goods, or high-skilled manufactured goods, and research what inputs tend to be used in producing these goods: resources, raw labour, human capital, or physical capital. Are these countries abundant in those inputs?

3. Download data on the top 25 products imported into Canada from China and India (separately) in the year of the year of the 1990s corresponding to the last digit of your B00 number. For example, if your B00 number ends in 5, collect data from 1995. 

4. From the lists in products in question 3, examine the top 5 products and determine whether they are substantially different types of products from those exported by China and India in 2016.

Essay:

In your essay, describe the products that China and India export to Canada and how these exports have changed over time. Describe in general terms what kinds of goods these are, and consider what kinds of inputs are used to produce them. Does a country’s resource availability affect its exports? Rodrik (2006) shows that, in 1992, both China and India exported goods that were more sophisticated than their income levels would have predicted. Explain how Rodrik measures export sophistication. In 2016, do these countries still exhibit more export sophistication than you would expect?

Your essay must have a title, an introduction, a conclusion, and a data appendix. Make sure to define all terms and provide appropriate background information. 

The maximum length is 500 words plus a two-page data appendix; include a word count at the end of your submission. Include the grading rubric as the first page of your submission. Use Chicago or APA style, and write in 11 or 12 point font, double-spaced, with one-inch margins. You must submit a hard copy (in class) by the deadline. Late submissions will be penalized at 20% per day, starting immediately.