Introduction:

China and India are the two largest developing countries with many common characteristics regarding economic development. As two members of BRICS countries, they are the typical representatives of emerging economies. In 2015, China's GDP reached $11 trillion and India's reached $2 trillion, making them the world's second and ninth largest economy respectively. With huge population and large-sized production, trade plays a significant role in both two countries' economic development. But since the economic system and industrial structure of the two countries are very different, China is much more depending on foreign trade than India according to the traditional trade statistics.

In this paper we aim to estimate the effects of Chinese and Indian exports on their countries’ economic development, namely, the ratio of trade dependence from the domestic value-added perspective, which contributes directly to their total gross domestic product. We then decompose the influential factors by structure decomposition analysis. Finally, we derive some policy recommendations for these countries.