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Sino-Indian Liberalization: The Role of Trade and Foreign Investment

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  • A.S. Bhalla

Abstract

Two major factors account for a country’s growing integration with the global economy: trade and foreign investment; expansion of exports, and foreign direct investment (FDI). Growth of exports became a dominant source of industrial growth during the 1980s in most developing countries (see Helleiner, 1995). Most of these countries including China and India, have replaced the old import-substitution policy by an export promotion strategy. Both domestic and international factors played an important role in the shift of national policies to repay debts. The process of globalization already underway necessitated export orientation for improving technology, management practices, marketing and international competitiveness. This paper aims at exploring the contributions of exports and FDI to growth and economic liberalization in China and lndia. The first section briefly reviews similarities and differences in the two economies. The second section deals with growth, composition and direction of foreign trade. The third section examines the role of FDI, and its sources and composition by sector, industry, and by overseas ethnic Chinese and Indians. Trade and FDI linkages are examined in the fourth section which also contains a brief case study of Guangdong (China). Copyright Kluwer Academic Publishers 1998

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  • A.S. Bhalla, 1998. "Sino-Indian Liberalization: The Role of Trade and Foreign Investment," Economic Change and Restructuring, Springer, vol. 31(2), pages 151-173, May.
    • Handle: RePEc:kap:ecopln:v:31:y:1998:i:2:p:151-173
    DOI: 10.1023/A:1003495726667
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    Cited by:

    1. Srabani Roy Choudhury, 2010. "Japan’s Foreign Direct Investment Experiences in India: Lessons Learnt from Firm Level Surveys," Working Papers id:2363, eSocialSciences.

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