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Growth Prospects in China and India Compared

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  • Richard Herd
  • Sean Dougherty

Abstract

This paper compares the growth prospects of China and India through a growth accounting analysis. Consistent time series for capital stock and employment are constructed using available survey data, and recent revisions to the national accounts for both countries are incorporated. The results allow for a discussion of the sources of growth in both countries, and a consideration of each country's rate of potential growth in light of the outlook for national savings, as demographic shifts occur in each country.

Suggested Citation

  • Richard Herd & Sean Dougherty, 2007. "Growth Prospects in China and India Compared," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 4(1), pages 65-89, June.
    • Handle: RePEc:liu:liucej:v:4:y:2007:i:1:p:65-89
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    References listed on IDEAS

    as
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    Cited by:

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    2. Shi Yutian & John Hicks & P. K. Basu & Kishor Sharma & Yapa Bandara & Tom Murphy, 2017. "Balancing Act: Adjustment Of China'S Economy To Secure Sustainable Growth," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 62(05), pages 1097-1114, December.
    3. Eswar S. Prasad, 2011. "Rebalancing Growth in Asia," International Finance, Wiley Blackwell, vol. 14(1), pages 27-66, April.
    4. Enrico Marelli & Marcello Signorelli, 2011. "China and India: Openness, Trade and Effects on Economic Growth," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 8(1), pages 129-154, June.
    5. Nader Nazmi & Julio E. Revilla, 2008. "Economic Efficiency and Growth: Evidence from Brazil, China, and India," WIDER Working Paper Series RP2008-86, World Institute for Development Economic Research (UNU-WIDER).
    6. Qu, Jianying & Li, Ke & Ye, Ze & Shao, Shuai, 2022. "The impact of differential power pricing policy on firm productivity in China: Evidence from iron and steel firms," Journal of Asian Economics, Elsevier, vol. 80(C).
    7. Monojit Chatterji & Sushil Mohan & Sayantan Ghosh Dastidar, 2014. "Relationship Between Trade Openness And Economic Growth Of India: A Time Series Analysis," Journal of Academic Research in Economics, Spiru Haret University, Faculty of Accounting and Financial Management Constanta, vol. 6(1 (March)), pages 45-69.
    8. Alan Heston, "undated". "What Can Be Learned About the Economies of China and India from Purchasing Power Comparisons?," Indian Council for Research on International Economic Relations, New Delhi Working Papers 229, Indian Council for Research on International Economic Relations, New Delhi, India.
    9. Jin, Keyu, 2009. "Industrial structure and financial capital flows," LSE Research Online Documents on Economics 25827, London School of Economics and Political Science, LSE Library.
    10. Ab-Rahim, Rossazana & Selvarajan, Sonia Kumari & Md Noor, Nor Ghani & Affizzah Awang Marikan, Dayang, 2018. "Convergence Clubs of Economic Liberalization in ASEAN, China, and India," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 52(3), pages 129-141.
    11. Zheng, Jinghai & Bigsten, Arne & Hu, Angang, 2009. "Can China's Growth be Sustained? A Productivity Perspective," World Development, Elsevier, vol. 37(4), pages 874-888, April.
    12. Lindman, Sebastian & Tuvhag, Tom & Jayasekera, Ranadeva & Uddin, Gazi Salah & Troster, Victor, 2020. "Market Impact on financial market integration: Cross-quantilogram analysis of the global impact of the euro," Journal of Empirical Finance, Elsevier, vol. 56(C), pages 42-73.
    13. Keting Shen & Jing Wang & John Whalley, 2015. "Measuring Changes in the Bilateral Technology Gaps between China, India and the U.S. 1979 - 2008," NBER Working Papers 21657, National Bureau of Economic Research, Inc.
    14. Emmanuel Mamatzakis & M. Tsionas, 2018. "Decomposing global bank productivity growth: the role of non-performing loans, equity and technology," Working Paper series 18-41, Rimini Centre for Economic Analysis.
    15. Shen, Keting & Wang, Jing & Whalley, John, 2016. "Measuring Changes in the Bilateral Technology Gaps between China, India and the U.S. 1979 - 2008," CAGE Online Working Paper Series 261, Competitive Advantage in the Global Economy (CAGE).
    16. Ding Lu, 2017. "China's Growth Slowdown and Prospects for Becoming a High-Income Developed Economy," Asian Economic Papers, MIT Press, vol. 16(1), pages 89-113, Winter/Sp.
    17. Enrica Di Stefano & Daniela Marconi, 2015. "Assessing potential growth in emerging countries after the global financial crisis," Questioni di Economia e Finanza (Occasional Papers) 256, Bank of Italy, Economic Research and International Relations Area.
    18. Nader Nazmi & Julio Revilla, 2011. "Brazil’s growth performance: a comparative perspective to the Asian giants," Economic Change and Restructuring, Springer, vol. 44(1), pages 7-24, April.

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    More about this item

    Keywords

    Growth accounting; potential growth; capital measurement; demographics; China; India;
    All these keywords.

    JEL classification:

    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies

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