Munich Personal RePEc Archive

Comparing and contrasting growth of India with China

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

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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.

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