Comparing and contrasting growth of India with China

Gupta, Abhay (2007): Comparing and contrasting growth of India with China.

Abstract

This paper compares and contrasts the growth experience of India with that of China. Chinese economy has grown at much faster rate than Indian, but India seems to be catching up. The average estimated productivity growth rate of China (5.9%) is more than double that of India (2.4%). The difference between same-deflator average growth rates of India and China reduces significantly (by as much as 70%) for manufacturing sector. While increased growth of spending are accompanied by increase the growth rate of productivity in China, in India the correlation is negative. For India, service sector growth trend is more strongly correlated with government spending and infrastructure.

• Item Type: MPRA Paper
• Language: English
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O53 - Asia including Middle East; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity

References

Robert J. Barro and Jong-Wha Lee. International data on educational attainment: Updates and implications. CID Working Papers 42, Center for International Development at Harvard University, April 2000.

Barry Bosworth and Susan M. Collins. Accounting for growth: Comparing china and india. NBER Working Papers 12943, National Bureau of Economic Research, Inc, February 2007.

Robert J Hodrick and Edward C Prescott. Postwar u.s. business cy- cles: An empirical investigation. Journal of Money, Credit and Banking, 29(1):1{16, February 1997.

Carsten A. Holz. China's reform period economic growth: How reliable are angus maddison's estimates? Review of Income and Wealth, 52(1):85{ 119, 03 2006.

World Bank ICP. 2005 international comparison program, preliminary results. http://www.worldbank.org/data/icp, December 2007.

Angus Maddison. Chinese Economic Performance in the Long run. De- velopment Centre studies. Organisation for Economic Co-operation and Development., 1998.