Volume 31, Issue 1 Are exports and imports cointegrated in India and China? An empirical analysis Aviral Kumar Tiwari ICFAI University, Tripura Abstract This study analysis the sustainability of the trade deficits in the two giant economies of Asia, namely India and China with allowance of endogenous structural breaks. We found that trade deficit is sustainable in case of India but not in case of China. This implies that macroeconomic policies of India but not of China have been effective in leading exports and imports to long run steady state equilibrium relationship. I am grateful to Paresh Kumar Narayan for providing me the codes of his paper for my analysis and two anonyms referee for the constructive suggestions in improving this paper in considerable manner particularly in methodological aspect. Of course, any error that remains is mine. Citation: Aviral Kumar Tiwari, (2011) ''Are exports and imports cointegrated in India and China? An empirical analysis'', Economics Bulletin, Vol. 31 no.1 pp. 860-873. Submitted: Jun 28 2010. Published: March 17, 2011.