CHINDIA’s export expansion: impacts on the small island developing states of CARICOM
Publication/source: Journal of Economic Studies, 1-14, 2026
Description / abstract: Purpose This paper assesses the trade impact of China and India’s (CHINDIA) expansion on the small island developing states (SIDS) of the Caribbean Community (CARICOM). It assesses both CHINDIA’s competitive threat to CARICOM’s exports in third markets and the spillover trade opportunities for the region from CHINDIA’s rapid growth. Design/methodology/approach We employ a series of competition measures to estimate CHINDIA’s impact on CARICOM's exports in its largest export destination, the United States (US). We then estimate a gravity model to assess CARICOM’s bilateral trade opportunities with CHINDIA along with the explanatory power of the Linder hypothesis in Southern trade between large and small exports. Findings CHINDIA’s export threat to CARICOM in the US market is low due to a divergence in export specialization patterns. Our …