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Chindia: Does Culture Matter in Hindu and Confucian Economies?

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  • Leah Green
  • Patrick Mendis

Abstract

China and India (Chindia) have begun in recent years to enjoy growing measures of economic success, reversing centuries of structural poverty and negligible rates of economic growth. This article examines the influence of varying cultural propensities—Hinduism in India and Confucianism in China—and their impact on each country's economic turnaround. It discusses the historical circumstances that shaped Chindia's perspectives on foreign direct investment and how external forces contributed to domestic policy-making. It also addresses three ways in which culture can affect economy and two major events that cemented the direction of Chindian economic growth. Finally, the paper presents a comparative analysis of China and India and their respective impact of culture on development. It asserts that the forces of culture and its historical development do matter, especially when it comes for a nation to reverse its deprived and stagnated situation and to achieve a status of economic powerhouse.

Suggested Citation

  • Leah Green & Patrick Mendis, 2008. "Chindia: Does Culture Matter in Hindu and Confucian Economies?," Global Economic Review, Taylor & Francis Journals, vol. 37(4), pages 429-445.
    • Handle: RePEc:taf:glecrv:v:37:y:2008:i:4:p:429-445
    DOI: 10.1080/12265080802480845
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    References listed on IDEAS

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    1. Barry Bosworth & Susan M. Collins, 2008. "Accounting for Growth: Comparing China and India," Journal of Economic Perspectives, American Economic Association, vol. 22(1), pages 45-66, Winter.
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