...NBER WORKING PAPER SERIES ACCOUNTING FOR GROWTH: COMPARING CHINA AND INDIA Barry Bosworth Susan M. Collins Working Paper 12943 http://www.nber.org/papers/w12943 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 February 2007 We are very indebted to Anthony Liu and Gabriel Chodorow-Reich for extensive assistance in understanding the data and constructing the growth accounts. This paper was presented at the annual conference of the Tokyo Club Foundation for Global Studies, December 6-7, 2006. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research. © 2007 by Barry Bosworth and Susan M. Collins. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. Accounting for Growth: Comparing China and India Barry Bosworth and Susan M. Collins NBER Working Paper No. 12943 February 2007 JEL No. F43,O1,O4 ABSTRACT We compare the recent economic performances of China and India using a simple growth accounting framework that produces estimates of the contribution of labor, capital, education, and total factor productivity for the three sectors of agriculture, industry, and services as well as for the aggregate economy. Our analysis incorporates recent data revisions in both countries and includes extensive discussion of the underlying data...
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...Name: Course: Professor: Date: Executive summery As per the 2010 agreement between president of china Hu Jintao and Canadian Prime Minister Stephen Harper, expert officials from both china and Canada carried out a study to give an analytical foundation to evaluate possible bilateral economic complementarities in some specific sectors (Metz, 2001). Each and every state globally has specific interest in various sectors of economy that promotes trade with the other country of interest depending with its capacity to supply to that country. The research completion assists to set the base for the two countries to start investigative discussions on matters of trade and economic promotion, as discussed by the leaders in the 2012 presidential meeting between the president of Canada and china. Both china and Canada are big trading countries. Both countries have a past history of integral trade as well as future potential economic growth. Research indicates that china is currently Canada’s second largest trading partner, whereas on the other hand, Canada is placed thirteenth among china’s top trading partners globally (Zhang, 2009). As a matter of fact from research, there is increase in two-way trade in goods, services and investments among the two countries. However, people to people relationship between the two countries have never been strong though there is an indication that there are students who visit to each other’s country. Government to government cooperation...
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................................................................................... 7 2.1 Bilateral Trade between Australia and China .............................................................................. 7 2.2 South Australian Trade with China .............................................................................................. 8 2.2.1 Disaggregated Analysis of South Australian Trade with China ........................................... 8 2.2.2 South Australia’s trade and comparative advantage ........................................................... 9 2.2.2.1 South Australia’s Revealed Comparative Advantage in comparison to other States and Territories .......................................................................................................................................... 12 2.2.2.2 2.2.2.3 Disaggregated Analysis of Key Agricultural Products ....................................................... 18 2.2.2.4 Possible Impacts of ChAFTA Commitments on Agriculture for South Australia ............... 20 2.2.2.5 3 Disaggregated Analysis of Key Non-agricultural Goods ................................................... 14 Wine Sector ....................................................................................................................... 22 Trade in Services and Investment .................................................................................................... 23 3.1...
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...Investment in India & China !! Vivek Bhurat (MBA) # 3-4-1013/22, Flat No. 201, Vijetha Sai Mohini Apts., Barkatpura, Hyderabad - 500027. Mobile : 9000400076, E-mail : svivekbhurat@gmail.com Abstract The purpose of this article is to highlight the important determinants of FDI inflow in India & China. This article attempts to answer the question: "What are the important factors attracting FDI inflow in China then that of India?" It is concludes that market size, population, low labor cost, quality infrastructure, open policies to international trade, economic policies, tax policies, etc. are important factors of FDI inflow. Theoretically, it will fill the gap in the literature and help to the economists and investors to understand the This study aims to helps to know the future of india in terms of development in reference to Foreign Investment. The changing trends in the government & economy of india have been the indicators of development of India. The main objective of this study is to compare the flow of FDI in INDIA & CHINA and to bring the revolution in the development of india by the schemes taken by india to attract foreign investment. The crucial step in this revolution is the campaign “Make in India” an intiative by Shri Narendra Modi, Honourable Prime Minister of India. This paper also highlights the foreign direct investment (FDI) policy under the campaign “Make in India”. Introduction India & China has the huge population...
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...ECONOMICS SCHOOL OF INTERNATIONAL TRADE AND ECONOMICS Introduction The purpose of this essay is to present a comparison between the Moroccan economy and the Chinese economy in broad lines. The comparison will focus on the analysis of the economies sectors, their respective current account balances and the business environment in each of both countries. Thesis Although both economies are quite different regarding their economy ’s structures and economic growth patterns, it is evident that the initiatives their respective governments took into joining the world’s trading system benefited their economies on the long run. The recent world crisis gave raise to new challenges for both the Moroccan and the Chinese economy and gave urge to restructure the structure of their nation’s economy. Roadmap This essay is divided in three parts. The first two part, describe respectively the Moroccan and the Chinese economies. In the last third part, I will compare both economies in regards to the information given in the first and second parts. Describing each of these two economies –in the first and second parts, I will start by giving general information and an overview of the economy. Then I will more to give more insights on each sector of the Moroccan and Chinese economies. The comparative analysis that comes in the third part of this essay will follow the same model. Analysis of Morocco’s Economy 1. General Information Region Income category Population GDP (PPP) GDP per capita...
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...China’s Banking Sector The Chinese banking sector was almost completely owned by the government and it was isolated from the global economy. Chinese banks were subject to the requirements of their government’s central intended economic policy. Since 1978, the Chinese government has focused on creating a banking system with different types of institutions and agencies that function in diverse markets with clearly stipulated functions. One of the main objectives of the Chinese banking reforms has been to give incentives to the financial institutions to become more aggressive, commercial entities. Such strategy has limited the competition between such institutions and only affects the agencies that perform similar tasks. However, banks in China have not been allowed complete autonomy, and are expected to comply with government directives that who often place strategies to be used by banks to improve their profitability and their solvency. Different classes of banks are currently operating in China, with different structures and serving different functions. First, the wholly state owned banks. Second, “equitized” commercial banks or banks that were wholly state-owned and were turned into join stock firms in which the government is the major stockholder. Third, includes a mixture of local banks, with municipal governments as principal stockholders. Forth, join-stock commercial banks that were founded after the beginning of the China’s banking reforms and with relatively low...
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...Economic Liberalization, the Changing Role of the State and ‘‘Wagner’s Law’’: China’s Development Experience since 1978 DAMIAN TOBIN * CeFiMS, SOAS, University of London, UK Summary. — The paper applies Wagner’s Law of increasing state activity to illustrate the changing function of the state in China as a consequence of economic liberalization. Wagner’s Law describes the association between increasing national wealth in progressive states and the rise in state activity and expenditure. This indicates that the causes of bureaucratic expansion are to be sought, not just in terms of political pressures, but the interplay between political considerations and the economic necessities, resulting from the emergence of new property rights. A simple illustrative model is developed to measure the effects of increasing national wealth and the growth of the public sector. This suggests that the patterns of economic development observed by Wagner in 19th century Europe are not unlike those observed in China today. Ó 2005 Elsevier Ltd. All rights reserved. Key words — Asia, China, economic growth, public sector 1. INTRODUCTION The relationship between economic growth and the size of the state sector has long been a topic of interest for public policy practitioners and academics alike. Throughout history, the role of the state has been critical in determining particular economic outcomes. Research in this area has in general focused on how economic policies impact upon economic growth. Keynesian...
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...PART-I US-Canada: Since many years, US-Canada trade has been the cornerstone for Canada’s economic development. Canada began its trade with the US in 1920s when rapid urbanization in the US led to huge demand in wood and other forestry products. In the 1920s and 1930s, pulp production increased steadily with over 90% of the produce being exported to the US. In 1925, the opening of the Panama Canal increased the exports of lumber from British Columbia to eastern U.S. markets, which dramatically increased the netbacks received for lumber produced in British Columbia (Statistics, Canada, 2012). Post world war, rapid expansion in the US industrial capacity was accompanied with rapid growth in the Canadian economy as well. Growth in the demand for newspapers led to the growth of pulp and paper industry. By1950, over half of the world’s newsprint was supplied by Canada. By 1954, pulp and paper exports accounted for 24% of Canada’s total exports, of which, 33% of those exports were to the United States (Statistics, Canada, 2012). Post 1960, the new staple in the resource landscape for Canada was Energy. Until this time, though some local sources were available on the Prairies and in Nova Scotia, Canada had relied on coal imports. In 1957, there was a major oil discovery in Alberta at Leduc, which lead to a major and dramatic expansion of crude oil and natural gas industry, the effects of which are still evident till date. The North American Free Trade Agreement (NAFTA) removed most...
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...involves producing more goods and services with the same inputs of labor, capital, energy and materials (1). Pretty much everything you can imagine contributes to a countries economy and ultimately economic growth; from raw materials to availability of energy, from geography to political governance. The strength of a countries economy tends to speak to its place in the general importance of the world. Being economically weak a country tends to be poor and normally overlooked, while economically strong countries are able to effect other countries financially and thus tend to have much more sway in world dealings. I will discuss the two countries of China and India and look at their current economic situation and keys to their future growth. India and China India and China have much in common and also many differences that make their economies and economic growth very different. India and China are neighbors in south East Asia, sharing about 2100 miles of boarder between each other that runs along the Himalayas. Both countries are ancient in origin and birth places of civilization outside of the Middle East. They both have very large work forces available and 100 years ago both countries were considered to be fairly useless in the global economy except for tea production and some raw materials like silk or dyes. Both countries were at least partially colonized by the English. Both countries are potentially strong economies, although China has more realization of this possibility...
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... Many countries in Europe and US are dealing with fiscal crises, banking sector instability and serious downside growth risk. Fortunately, Das (2012) point out that Australia has a great probability in the future to face global economy problems. Australia is rich in natural resources, and because of their natural resources, it helps Australia to show a great performance in economic sector (Das, 2012). Australia’s economy activity keeps increasing, also added by the amount of demand for exports from China. With the large demand of exports from China, it proposes new opportunity in diversifying trade relations from European Market. Unfortunately, Australia is too depending itself on Asian demand. If decreases happen in demand from China, it will affect headline GDP growth. From now on, the intention of this discussion is to Australia’s economic growth, which relies on Asia’s continuing demand for resources. Nowadays, Australia’s growth is really depending itself to china’s demand. Plumb, Kent, and Bishop (2012) mention that the boom in the resource sector is one of the sectors that got an effect from strong growth in Australia. Plumb, Kent, and Bishop (2012) say that there are three overlapping phases that this boom has. But he believes that someday the demand for commodities will be easier because development of economies in the Asian region will shift from goods to services. Some Australian service industries also got increase highly because of demand from Asia (Plumb, Kent...
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...Why is China investing in Africa? Evidence from the firm level By Wenjie Chen, David Dollar, and Heiwai Tang1 August 2015 Abstract China’s increased trade with and investment in Africa has boosted the continent’s growth rate but has also generated considerable controversy. In this paper we investigate China’s outward direct investment (ODI) in Africa using macro and micro data. The aggregate data on China’s ODI in African countries reveal that China’s share of the stock of foreign investment is small, though growing rapidly. China’s attraction to resource-rich countries is no different from Western investment. China’s ODI is uncorrelated with a measure of property rights and rule of law, whereas Western investment favors the better governance environments. As a result, Chinese investment in strong and weak governance environments is about the same, but its share of foreign investment is higher in the weak governance states. The micro data that we use is MOFCOM’s database on all Chinese firms investing in Africa between 1998 and 2012. We use key words in project descriptions to code the investments into 25 sectors. This database captures the small and medium private firms investing in Africa. Contrary to common perceptions, there are few projects in natural resource sectors. Most projects are in services, with a significant number in manufacturing as well. In our country-sector-level regressions based on firms’ transaction-level data, we find that Chinese ODI is profit-driven...
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...large, varying from business to business. Logistics management, software development to design everything these days is being outsourced to countries like India, China mainly due to cheap labor and cost cutting being the prime reasons behind it. Outsourcing however as it may seem as a loss of opportunities in the countries outsourcing the jobs, it is incredibly beneficial to the countries the jobs are outsourced to. The positive impact of outsourcing outweighs the negative impacts of it. How is it positive and why is it necessary? In...
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...Reform and Opening in China: “Sequencing” or “Parallel Partial Changing” FAN Gang National Economic Research Institute China Reform Foundation Beijing, China November, 1999 Content I. Introduction: Lessons of Asia Financial Crisis for Reform and Opening Benefits from Globalization Constrains to the developing countries The “unequal footing” A common cause of Asian crises: “incompatible opening” The Lessons from Asia crisis: Speed up the reform and Balance the globalization and domestic restructuring Case of China: Gradual liberalization II. China: Opening process and benefits from the globalization II. 1 Trade. II. 2 Foreign Investment II. 3 Service sectors III. Potential negative impacts of further market liberalization III. 1. Unemployment in general III. 2 Agriculture III. 3 SOEs and Manufacture industries III. 4 Service sectors III. 5 Inter-region and inter-group income disparity IV. Impacts of Asia crisis and corresponding policies V. How to achieve further “Compatible opening” Will the quick market liberalization solve the problems? Reforms and opening “Compatible opening” vs. “sequencing” Timetable for opening? No universal solution China has quickly opened its economy in the past 20 years. It is became the largest FDI recipient developing country since 1993 and the trade is already equivalent...
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...Reform and Opening in China: “Sequencing” or “Parallel Partial Changing” FAN Gang National Economic Research Institute China Reform Foundation Beijing, China November, 1999 Content I. Introduction: Lessons of Asia Financial Crisis for Reform and Opening ¾ Benefits from Globalization ¾ Constrains to the developing countries ¾ The “unequal footing” ¾ A common cause of Asian crises: “incompatible opening” ¾ The Lessons from Asia crisis: Speed up the reform and Balance the globalization and domestic restructuring ¾ Case of China: Gradual liberalization II. China: Opening process and benefits from the globalization II. 1 Trade. II. 2 Foreign Investment II. 3 Service sectors III. Potential negative impacts of further market liberalization III. 1. Unemployment in general III. 2 Agriculture III. 3 SOEs and Manufacture industries III. 4 Service sectors III. 5 Inter-region and inter-group income disparity IV. Impacts of Asia crisis and corresponding policies V. How to achieve further “Compatible opening” ¾ Will the quick market liberalization solve the problems? ¾ Reforms and opening ¾ “Compatible opening” vs. “sequencing” ¾ Timetable for opening? ¾ No universal solution China has quickly opened its economy in the past 20 years. It is became the largest FDI recipient developing country since 1993 and the trade is already equivalent...
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...accession Since China decided to accede WTO on 11 December 2001, it means that China has to change its several economic aspects, including their commitment towards multilateralism and opened investment, transparency of their economic situations, and their obligation to obey the agreements on multilateral agreement (GATT). The Accession of China in WTO will bring massive benefits for China to enter a bigger scale of the world’s industries, which makes China able to expand their economic activities into a larger sectors. China has become the seventh largest exporter and eighth largest importer for trade in goods, as well as included in the 12 largest exporters and importers of services sectors. China’s revenue after officially become a WTO member increased much higher than the developed countries, especially among other developing countries. As a condition for membership, China was required to make protocol commitments that substantially exceed those made by any other member of the World Trade Organization, including those that have joined since 1995, the broader and deeper commitments China has made inevitably will entail substantial short-term economic costs and these costs will be reflected in rising rates of unemployment in sectors that will shrink as they face increased international competition, both from imports and from goods and services provided by foreign-invested firms in China. Every country which accede to WTO must build their commitments, thus for China, that even...
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