The role of India and China is expanding in the global economy. A whole new array of economic and financial issues are emerging which need to be tackled if the current period of growth is to endure. The issues that need attention include how to expand the services sector, especially financial services; how to keep pace with the incredible growth of the manufacturing sector; how to ensure the widest possible diffusion of the huge economic gains seen over the last ten years and how to provide the framework for the development of two-fifths of the human race.
Economic Reforms in India and China: Emerging Issues and Challenges aims at providing the goals, strategies and policies to tackle these issues. It discusses the efforts to address issues like encouraging less successful sectors of the economy that have been complicated by forces of globalization and the ever-changing realities of today's global economy and appraises issues pertaining to economic reforms. The articles explore ways to improve the well-being of the poor, to design effective structures and institutions for poverty reduction and how the reforms, in their economic, political and social dimensions can be used to tackle global developmental issues.
Chapter Eleven: Foreign Direct Investment: A Comparative Study of China and India
Foreign Direct Investment: A Comparative Study of China and India
Foreign capital inflows, especially foreign direct investment (FDI) is becoming an increasingly important aspect of development in the globalization process. World FDI flows rose from US$644 billion in 1998 to US$1.3 trillion in 2001 (World Investment Report, 2001), growing by about 26 per cent per year, which is much faster than other major economic aggregates like world production, world capital formation and world trade. The global expansion of investment flows is driven by more than 60,000 multinational Corporations (MNCs) with over 80,000 affiliates abroad. China has been particularly active and successful in attracting large inflows of FDI since the beginning of its reforms in 1979. The ...