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 Seven: Export-Led Growth: Characteristics Contrasting India and China1
Export-Led Growth: Characteristics Contrasting India and China1
The thesis that open economies (Less Developed Countries or LDCs) have grown faster than those less open, which the World Bank (World Bank, 1987) has been pushing, has unfortunately been rejected by many radical scholars as well as by others inclined to structuralist leanings. Actually, the thesis is stronger than what studies thus far have shown. The first clarity is to understand openness as essentially trade openness. Two way openness on the capital account for LDCs remains dysfunctional and the cause of much of the balance of payments and macroeconomic volatility. Openness of economies is a function of the structural features, principally its population, per capita income and land man ratio, which ...