IDEAS home Printed from https://ideas.repec.org/a/kap/ecopln/v31y1998i2p151-173.html
   My bibliography  Save this article

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

Author

Listed:
  • 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

Suggested Citation

  • 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
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1023/A:1003495726667
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1023/A:1003495726667?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Balasubramanyam, V N & Salisu, M & Sapsford, David, 1996. "Foreign Direct Investment and Growth in EP and IS Countries," Economic Journal, Royal Economic Society, vol. 106(434), pages 92-105, January.
    2. Broadman, Harry G. & Xiaolun Sun, 1997. "The distribution of foreign direct investment in China," Policy Research Working Paper Series 1720, The World Bank.
    3. Gary H. Jefferson & Thomas G. Rawski, 1994. "Enterprise Reform in Chinese Industry," Journal of Economic Perspectives, American Economic Association, vol. 8(2), pages 47-70, Spring.
    4. Mr. Gyorgy Szapary & Mr. Steven V Dunaway & Mr. David Burton & Mr. Mario I. Bléjer, 1991. "China: Economic Reform and Macroeconomic Management," IMF Occasional Papers 1991/007, International Monetary Fund.
    5. Lall, Sanjaya & Mohammad, Sharif, 1983. "Multinationals in Indian big business : Industrial characteristic of foreign investment in a heavily regulated economy," Journal of Development Economics, Elsevier, vol. 13(1-2), pages 143-157.
    6. Rawski, Thomas G, 1994. "Chinese Industrial Reform: Accomplishments, Prospects, and Implications," American Economic Review, American Economic Association, vol. 84(2), pages 271-275, May.
    7. Wei, Shang-Jin, 1995. "Attracting foreign direct investment: Has China reached its potential?," China Economic Review, Elsevier, vol. 6(2), pages 187-199.
    8. Harry G. Broadman & Xiaolun Sun, 1997. "The Distribution of Foreign Direct Investment in China," The World Economy, Wiley Blackwell, vol. 20(3), pages 339-361, May.
    9. Dwight H. Perkins, 1994. "Completing China's Move to the Market," Journal of Economic Perspectives, American Economic Association, vol. 8(2), pages 23-46, Spring.
    10. Jagdish N. Bhagwati, 1978. "Anatomy of Exchange Control Regimes," NBER Chapters, in: Foreign Trade Regimes and Economic Development: Anatomy and Consequences of Exchange Control Regimes, pages 7-52, National Bureau of Economic Research, Inc.
    11. Kaplinsky, Raphael, 1997. "India's industrial development: An interpretative survey," World Development, Elsevier, vol. 25(5), pages 681-694, May.
    12. Jagdish N. Bhagwati, 1978. "Foreign Trade Regimes and Economic Development: Anatomy and Consequences of Exchange Control Regimes," NBER Books, National Bureau of Economic Research, Inc, number bhag78-1.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Iamsiraroj, Sasi, 2016. "The foreign direct investment–economic growth nexus," International Review of Economics & Finance, Elsevier, vol. 42(C), pages 116-133.
    2. Y Wei & X Liu, 2006. "Productivity spillovers from R&D, exports and FDI in China's manufacturing sector," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(4), pages 544-557, July.
    3. Mario Biggeri & Danilo Gambelli & Christine Phillips, 1999. "Small and medium enterprise theory: evidence for Chinese TVEs," Journal of International Development, John Wiley & Sons, Ltd., vol. 11(2), pages 197-219.
    4. Zeshan Atique & Mohsin Hasnain Ahmad & Usman Azhar, 2004. "The Impact of FDI on Economic Growth under Foreign Trade Regimes: A Case Study of Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 43(4), pages 707-718.
    5. Shafaai, Shafizal & Masih, Mansur, 2018. "The dynamics of growth, exports, exchange rate and foreign direct investment: evidence from Malaysia," MPRA Paper 102538, University Library of Munich, Germany.
    6. Harvie, C., 1999. "China's Township and Village Enterprises and their Evolving Business Alliances and Organizational Change," Economics Working Papers wp99-6, School of Economics, University of Wollongong, NSW, Australia.
    7. Krüger, Ralf & Ahlfeld, Sebastian, 2005. "Ausländische Direktinvestitionen in Entwicklungsländern: Eine überschätzte Wachstumsdeterminante?," Discussion Papers in Development Economics 31, Justus Liebig University Giessen, Institute for Development Economics.
    8. Mr. Ewe-Ghee Lim, 2001. "Determinants of, and the Relation Between, Foreign Direct Investment and Growth: A Summary of the Recent Literature," IMF Working Papers 2001/175, International Monetary Fund.
    9. Aida Caldera Sánchez & Filippo Gori, 2016. "Can Reforms Promoting Growth Increase Financial Fragility?: An Empirical Assessment," OECD Economics Department Working Papers 1340, OECD Publishing.
    10. Jože Mencinger, 2003. "Does Foreign Direct Investment Always Enhance Economic Growth?," Kyklos, Wiley Blackwell, vol. 56(4), pages 491-508, November.
    11. Weshah Razzak & Elmostafa Bentour, 2012. "Do Developing Countries Benefit from Foreign Direct Investments?," EERI Research Paper Series EERI_RP_2012_07, Economics and Econometrics Research Institute (EERI), Brussels.
    12. Kohpaiboon, Archanun, 2006. "Foreign direct investment and technology spillover: A cross-industry analysis of Thai manufacturing," World Development, Elsevier, vol. 34(3), pages 541-556, March.
    13. Jeffrey D. Sachs & Wing Thye Woo, "undated". "Understanding China'S Economic Performance," Department of Economics 97-04, California Davis - Department of Economics.
    14. James L. Butkiewicz & Halit Yanikkaya, 2008. "Capital Account Openness, International Trade, and Economic Growth: A Cross-Country Empirical Investigation," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 44(2), pages 15-38, March.
    15. Razzak Weshah A. & Bentour El M., 2013. "Do Developing Countries Benefit from Foreign Direct Investments? An Analysis of Some Arab and Asian Countries," Review of Middle East Economics and Finance, De Gruyter, vol. 9(3), pages 357-388, December.
    16. Taube, Markus, 2005. "Spillover-effects, crowding-in and the contributions of FDI to growth in China: A review of the literature," Duisburg Working Papers on East Asian Economic Studies 74, University Duisburg-Essen, Asia-Pacific Economic Research Institute (FIP).
    17. Fetscherin, Marc & Voss, Hinrich & Gugler, Philippe, 2010. "30 Years of foreign direct investment to China: An interdisciplinary literature review," International Business Review, Elsevier, vol. 19(3), pages 235-246, June.
    18. Choong, Chee-Keong & Baharumshah, Ahmad Zubaidi & Yusop, Zulkornain & Habibullah, Muzafar Shah, 2010. "Private capital flows, stock market and economic growth in developed and developing countries: A comparative analysis," Japan and the World Economy, Elsevier, vol. 22(2), pages 107-117, March.
    19. Tian, Guoqiang, 1996. "State-Owned Enterprise Reform and Smooth Institutional Transition in China -- A Three-Stage Economic Reform Method," MPRA Paper 41213, University Library of Munich, Germany.
    20. repec:kap:iaecre:v:14:y:2008:i:1:p:25-35 is not listed on IDEAS
    21. Harvie, C., 1998. "Economic Transition: What Can Be Learned from China's Experience?," Economics Working Papers wp98-04, School of Economics, University of Wollongong, NSW, Australia.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:ecopln:v:31:y:1998:i:2:p:151-173. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.