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E-raamat: Emerging Giants: China and India in the World Economy

Edited by (Professor of Economics and Political Science, University of California, Berkeley), Edited by (Director and Chief Executive of the Indian Council for Research on International Economic Relati), Edited by (Department of Economics, Delhi School of Economics)
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  • Ilmumisaeg: 29-Apr-2010
  • Kirjastus: Oxford University Press
  • Keel: eng
  • ISBN-13: 9780191614514
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  • Formaat: EPUB+DRM
  • Ilmumisaeg: 29-Apr-2010
  • Kirjastus: Oxford University Press
  • Keel: eng
  • ISBN-13: 9780191614514

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China and India are the two most populous countries in the world and now also two of the fastest growing. By sheer virtue of the fact that China and India are home to 2.4 billion people - two-fifths of the world's population - the rapid growth of their economies has far-reaching implications not just for global living standards and poverty reduction but also for competitiveness and distribution of income in the rest of the world. Commensurate with their economic progress, there has been a surge of interest in the nature and implications of China and India's economic growth.

There are several apparent similarities in the development process of China and India: both are home to ancient civilizations that have bequeathed distinctive attitudes, institutions, and traditions. Both have very large populations. Both have performed well economically for more than two decades. However there are important differences that can be seen beneath the surface. China started the current reform process in 1978 - that is, almost fifteen years before India. The two countries have very different political systems. Their development models differ fundamentally as well. China has opened up much more than India to foreign trade and foreign direct investment, while India has a better developed banking system. Growth in the two countries has been driven by different sectors - Chinese growth by manufacturing and Indian growth by services.

This volume brings together some of the best research on issues related to the growth experience of China and India and places these issues in a comparative perspective. It contains papers written by some of the leading academic and experts in the world on issues ranging from the roles of China and India in the world economy, contrasts in their development experience, and challenges to sustaining growth.
List of Tables
xi
List of Figures
xv
List of Contributors
xix
Abbreviations xxi
Introduction xxv
China and India in the global economy xxvi
Comparisons and contrasts xxviii
Challenges for sustaining growth xxix
Part I China and India in the Global Economy
1 What Can Be Learned about the Economies of China and India from Purchasing Power Comparisons?
3(29)
Alan Heston
1.1 Introduction
3(1)
1.2 The growth record in a comparative framework
4(4)
1.3 Levels of GDP in China and India
8(14)
1.4 PPPs and sources of past and future growth
22(6)
1.5 PPPs and exchange rates
28(2)
1.6 Conclusion
30(2)
2 Trading with Asia's Giants
32(30)
Barry Bosworth
Susan M. Collins
Aaron Flaaen
2.1 Introduction
32(2)
2.2 Context
34(5)
2.3 Services trade
39(3)
2.4 Composition of goods exports
42(2)
2.5 The role of multinational corporations
44(3)
2.6 The role of distance
47(8)
2.7 Effects of the US trade deficit
55(4)
2.8 Conclusion
59(3)
3 The Chinese Export Bundles: Patterns, Puzzles, and Possible Explanations
62(25)
Zhi Wang
Shang-Jin Wei
3.1 Introduction
62(1)
3.2 Evolving sophistication in export structures: China vs. India
63(6)
3.3 What might explain China's precocious export sophistication?
69(10)
3.4 Conclusion
79(8)
Appendix 3A Data
81(6)
Part II Contrasts in Development Experience
4 The Cost Competitiveness of Manufacturing in China and India: An Industry and Regional Perspective
87(38)
Bart van Ark
Abdul Azeez Erumban
Vivian Chen
Utsav Kumar
4.1 Introduction
87(2)
4.2 Unit labor cost as competitiveness measure
89(3)
4.3 International comparisons of productivity and unit labor costs
92(4)
4.4 Regional comparison of productivity and unit labor cost
96(11)
4.5 Convergence trends in compensation, productivity, and unit labor cost
107(9)
4.6 Conclusion
116(9)
Appendix 4A Basic data for China and India regional comparisons
118(7)
5 Law, Institutions, and Finance in China and India
125(59)
Franklin Allen
Rajesh Chakrabarti
Sankar De
Jun `QJ' Qian
Meijun Qian
5.1 Introduction
125(4)
5.2 Evidence on China's legal and financial systems and growth in the three sectors
129(15)
5.3 Law, finance, and growth in India: Aggregate evidence
144(7)
5.4 Firms' financing sources in China: Aggregate evidence and cross-country comparisons
151(10)
5.5 Law, finance, and growth in the Indian corporate sectors: Firm level evidence
161(6)
5.6 Survey evidence on the Chinese private sector
167(14)
5.7 Conclusions
181(3)
6 China and India: A Tale of Two Trade Integration Approaches
184(43)
Przemyslaw Kowalski
6.1 Introduction
184(5)
6.2 Main trade developments
189(17)
6.3 Trade policy developments
206(17)
6.4 Conclusion
223(4)
Part III Challenges to Sustaining Growth
7 China's Growth Model: Choices and Consequences
227(16)
Eswar S. Prasad
7.1 Introduction
227(2)
7.2 The composition of growth in China and India
229(3)
7.3 Policy choices
232(5)
7.4 The reform agenda
237(2)
7.5 Monetary policy
239(2)
7.6 Concluding remarks
241(2)
8 Deconstructing China's and India's Growth: The Role of Financial Policies
243(38)
Jahangir Aziz
8.1 Introduction
243(5)
8.2 China and India's recent growth experience
248(1)
8.3 China and India's economy as a neoclassical growth model
249(3)
8.4 Calibrating the growth model
252(3)
8.5 Simulating the Solow growth model
255(2)
8.6 Investment wedge
257(3)
8.7 Interpreting investment wedges as financial frictions
260(12)
8.8 Financial sector reforms in India
272(4)
8.9 Conclusion
276(5)
9 Pollution across Chinese Provinces
281(26)
Catherine Yap Co
Fanying Kong
Shuanglin Lin
9.1 Introduction
281(3)
9.2 Pollution and environmental policy in China
284(2)
9.3 Data and empirical methodology
286(5)
9.4 Analysis of results
291(13)
9.5 Conclusion
304(3)
Appendix 9A
306(1)
10 What Constrains Indian Manufacturing?
307(36)
Poonam Gupta
Rana Hasan
Utsav Kumar
10.1 Introduction
307(5)
10.2 Stylized facts and preliminary evidence
312(7)
10.3 Evidence from enterprise surveys
319(4)
10.4 Econometric analysis
323(14)
10.5 Conclusion
337(6)
Appendix 10A Data sources and construction of variables
339(4)
References 343(20)
Index 363
Barry Eichengreen is George C. Pardee and Helen N. Pardee Professor of Economics and Political Science at the University of California, Berkeley. He is also a research associate of the National Bureau of Economic Research and a research fellow at the Centre for Economic Policy Research (London). Dr. Eichengreen served as a senior policy advisor at the International Monetary Fund from 1997-98. A member of the Council on Foreign Relations, he has published widely on international monetary and financial affairs, including Financial Crises and What to Do About Them; Toward A New International Financial Architecture: A Practical Post-Asia Agenda; and Globalizing Capital: A History of the International Monetary System.







Poonam Gupta is an Associate Professor at the Department of Economics, Delhi School of Economics, Delhi University. She has previously worked as an economist in the International Monetary Fund's Research Department, Asia and Pacific Department and the European Department. She has frequently consulted for the World Bank, International Monetary Fund and the Asian and Development Bank. She holds a PhD in Economics from the University of Maryland. Her research interests include issues related to financial crises, capital flows, financial sector, structural transformation and growth, and issues related to the Indian growth experience. Her work has been published in the leading academic journals and in collective volumes.



Rajiv Kumar is Director and Chief Executive of the Indian Council for Research on International Economic Relations. Dr Kumar has been a Member of the National Security Advisory Board since August 2006 and member of the Telecom Regulatory Authority of India since January 2007. From August 2004 to January 2006, Dr. Kumar was Chief Economist with the Confederation of Indian Industry and worked with ADB, Manila for over 10 years as the Principal Regional Economist for Central Asia. He has written several books and contributes regularly to newspapers and journals.