China and India: A Tale of Two Economies

by Das; Dilip K

• ISBN13: 9780415406291
• ISBN10: 0415406293
• Edition: 1st
• Format: Hardcover
• Copyright: 2006-11-22
• Publisher: Routledge

Summary

The economies of the People's Republic of China and India are emerging-market economies, which account for more than a third of the global population. These two economies share many similarities in that they are large populous neighbors, who were regarded as abjectly poor countries until the 1980's and both are ancient cultures which has both advantages and disadvantages for economic development. However, their political systems are very different. While India is an open democratic society, China is a closed society run in an authoritarian manner by the Chinese Communist Party. This dissimilarity impacts on the economic decision making process in the two economies. This book is the first to systematically compare and contrast the two economies. It takes an objective and dispassionate view and delves into the constructive and favorable side as well as adverse and unfavorable side of the two economies. Written in a comprehensive and authoritative manner, it covers large areas of the two economies, includingtrade and financial sectors. It also includes other important relevant facets of the two economies.

Table of Contents

Preface	xi
Acknowledgements	xvii
About the author	xix
Tables	xxi
1 Comparing the comparables	1	(26)
1. Juxtaposing two populous giants	1	(2)
2. Comparing pre-modern China and India	3	(7)
3. Twists and turns in the twentieth century	10	(1)
4. Relative statistical profiles of the two economies	11	(3)
5. A plausible place in the global economy	14	(5)
6. Alarm bells for the global economy?	19	(4)
7. A larger potential global impact for China?	23	(1)
8. How does each perceive the other?	24	(2)
9. Conclusion and summary	26	(1)
2 Diverse economic growth paths	27	(41)
1. Discarding deliberate isolationism and launching into concerted growth	27	(6)
2. Income and poverty trends	33	(4)
3. Motivation and launching of the reform programs	37	(2)
4. China: reform paradigm and economic growth	39	(8)
5. India: reform paradigm and economic growth	47	(8)
6. Comparison of manufacturing sectors and export performance	55	(3)
7. Comparing the business environment in China and India	58	(3)
8. Why has India lagged behind China?	61	(2)
9. Sustainability and attainability of high growth rates	63	(2)
10. Conclusions and summary	65	(3)
3 The dragon's breath: the transitioning Chinese economy	68	(29)
1. Introduction	68	(1)
2. Why did the reform and liberalization program succeed?	69	(2)
3. The high growth environment and deflation	71	(1)
4. Saving and investment rates	71	(2)
5. As China emerges as a large trading economy	73	(8)
6. Foreign direct investment flows	81	(6)
7. Impact of the transitioning Chinese economy on the Asian economies	87	(4)
8. Advanced-technology exports: another global accomplishment	91	(2)
9. Swaying regional and global economies	93	(2)
10. Conclusions and summary	95	(2)
4 The elephant's saunter: the transitioning Indian economy	97	(34)
1. Introduction	97	(1)
2. Fervent dirigisme and recent growth trends	98	(3)
3. The fiscal-cum-Balance-of-Payments crisis	101	(10)
4. Achievements of reforms and lack thereof	111	(5)
5. Integration with the global economy	116	(4)
6. Growth momentum in the tertiary sector	120	(5)
7. Dynamism in Indian companies	125	(2)
8. Transition to a high growth trajectory?	127	(1)
9. Conclusion and summary	128	(3)
5 Crouching tiger, hidden dragon: how the two emerging economies interact with each other	131	(22)
1. Historic intellectual, cultural and economic relations	131	(1)
2. Bilateral relations during the contemporary period	132	(3)
3. Rapid bilateral trade expansion	135	(5)
4. Foreign direct investment	140	(6)
5. Building closer economic bonds	146	(5)
6. Conclusion and summary	151	(2)
Notes	153	(10)
Bibliography	163	(10)
Index	173