The paper first analyzes the pattern of trade for China and India in the new century. We find that: (1) Both countries have high openness ratios that positively associated with their growing labor productivity over years. (2) China’s world export share keeps increasing whereas India maintains...

Demographic structure has both the scale effect and the structural effect on bilateral trade. The "scale effect" refers that a low dependency ratio of exporter can produce and export more. Similarly, importer's low dependency ratio can induce more income and hence import more. The "structural...