The Effect of FDI on India and Chinese Economy

The Effect of FDI on India and Chinese Economy PDF Author: Dr. S.R. Keshava
Publisher:
ISBN:
Category :
Languages : en
Pages : 24

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Book Description
India and China are the two emerging economic giants of the developing world, both situated in Asia with 37% of world population (Asian Development Outlook2005) and with more than 9% growth in their respective GDP of their economies (World Development Report 2006). China got independence in 1949, after 2 years of India's political Independence (1947), but today, China has surged far ahead of India in socio-economic development indicators. The FDI in India is just 3.4% of FDI flows as a percentage of Gross Fixed Capital Formation in India by 2004 and 5.9% of FDI stocks as a percentage of GDP by 2004, whereas in China it was 8.2% of FDI flows as a percentage of Gross Fixed Capital Formation and 34.9% of FDI stocks as a percentage of GDP during the same year.In order to estimate the effect of FDI on economic growth the model formed is Y = A X1 a X2 b X3 y X4 x. The 't' ratio for the constant (a), GDI(x1), HC (x3), LF (x4) all are greater than two implying the strong significance of these variables on the GDP, but FDI is showing positive, but not relatively significant effect on GDP. The R2 for the model as a whole is 0.93, the F value is significantly high revealing the significance of the fitness of the model. The D-W Statistics for the model is 1.825 revealing, the problem of auto-correlation has been fairly solved. The model shows that 1 percent increase in GDI leads to increase in GDP by all most 0.5 percent. The 1% increase in FDI brings about an increase in GDP by 0.12 percent. The coefficient for human capital is 0.34 percent and that of the labour force is 0.7 percent. Thus GDI and HC significantly affect the GDP. However the coefficient of FDI though not significant as other variables in the study, is positive.

The Effect of FDI on India and Chinese Economy

The Effect of FDI on India and Chinese Economy PDF Author: Dr. S.R. Keshava
Publisher:
ISBN:
Category :
Languages : en
Pages : 24

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Book Description
India and China are the two emerging economic giants of the developing world, both situated in Asia with 37% of world population (Asian Development Outlook2005) and with more than 9% growth in their respective GDP of their economies (World Development Report 2006). China got independence in 1949, after 2 years of India's political Independence (1947), but today, China has surged far ahead of India in socio-economic development indicators. The FDI in India is just 3.4% of FDI flows as a percentage of Gross Fixed Capital Formation in India by 2004 and 5.9% of FDI stocks as a percentage of GDP by 2004, whereas in China it was 8.2% of FDI flows as a percentage of Gross Fixed Capital Formation and 34.9% of FDI stocks as a percentage of GDP during the same year.In order to estimate the effect of FDI on economic growth the model formed is Y = A X1 a X2 b X3 y X4 x. The 't' ratio for the constant (a), GDI(x1), HC (x3), LF (x4) all are greater than two implying the strong significance of these variables on the GDP, but FDI is showing positive, but not relatively significant effect on GDP. The R2 for the model as a whole is 0.93, the F value is significantly high revealing the significance of the fitness of the model. The D-W Statistics for the model is 1.825 revealing, the problem of auto-correlation has been fairly solved. The model shows that 1 percent increase in GDI leads to increase in GDP by all most 0.5 percent. The 1% increase in FDI brings about an increase in GDP by 0.12 percent. The coefficient for human capital is 0.34 percent and that of the labour force is 0.7 percent. Thus GDI and HC significantly affect the GDP. However the coefficient of FDI though not significant as other variables in the study, is positive.

Economic Growth in India and China

Economic Growth in India and China PDF Author: Leena Mary Eapen
Publisher:
ISBN:
Category : China
Languages : en
Pages : 224

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Book Description
For a country s economy to grow, it must raise its productivity, ability to attract Foreign Direct Investment (FDI), be open to trade, allocate its resources better, etc. For any country, the importance of FDI lies in developing technology abroad for dome

Foreign Direct Investment in China

Foreign Direct Investment in China PDF Author: Ms.Wanda Tseng
Publisher: International Monetary Fund
ISBN: 1451974175
Category : Business & Economics
Languages : en
Pages : 26

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Book Description
China's increasing openness to foreign direct investment (FDI) has contributed importantly to its exceptional growth performance. This paper examines China's experience with FDI and identifies some lessons for other countries. Most of the factors explaining China's success have also been important in attracting FDI to other countries: market size, labor costs, quality of infrastructure, and government policies. FDI has contributed to higher investment and productivity growth, and has created jobs and a dynamic export sector. China's success, however, did not come without some pitfalls: an increasingly complex tax incentive system and growing regional income disparities. Accession to the WTO should broaden China's "opening up" policies and continue FDI's contributions to China's economy in the future.

Foreign Investment in Rapidly Growing Countries

Foreign Investment in Rapidly Growing Countries PDF Author: H. Kehal
Publisher: Springer
ISBN: 0230554881
Category : Business & Economics
Languages : en
Pages : 258

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Book Description
China and India have both received a great amount of focus from the foreign investors. However, there are acute differences in the implementation of the economic reforms; China made rapid progress in the manufacture of high technology products, whilst India progressed in the development of high technology. This book explores the contrasts between China and India in attracting, utilizing and related issues and discusses the challenges faced by the foreign investors.

The Rise of China and India

The Rise of China and India PDF Author: A. Santos-Paulino
Publisher: Springer
ISBN: 0230282091
Category : Business & Economics
Languages : en
Pages : 303

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Book Description
This volume is a timely addition to the emerging literature on the rise of China and India, focusing on how rapid economic growth and geopolitical changes in these countries are reshaping the world economy and global governance. It covers issues such as productivity, labor market, trade competition, and energy.

China's Integration into Global Trading System and its Implications for India

China's Integration into Global Trading System and its Implications for India PDF Author: Dr. Neeraj Aswal
Publisher: HCTL Open Publications Solutions, India
ISBN: 1630413089
Category :
Languages : en
Pages : 249

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Book Description
HCTL Open Thesis and Dissertation Repository (HCTL Open TDR) is an International, Open-Access, Multi-disciplinary, Online Repository of Thesis, Dissertations, Students and Organizational Reports. HCTL Open TDR is published by HCTL Open Publications Solutions, India. - Get more at: http://tdr.hctl.org/

The Rise of India and China

The Rise of India and China PDF Author: Kala S Sridhar
Publisher: Taylor & Francis
ISBN: 1000201236
Category : Political Science
Languages : en
Pages : 324

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Book Description
This book offers a comparative analysis of the rise of India and China and their decisive economic and social roles in a global context. It presents a cumulative picture of the socio-economic challenges as well as the opportunities for growth and inclusive development before India and China. The volume analyses the performance of the two countries based on economic and human development indicators. It highlights the key achievements of the two countries in governance and financial growth, and the potential for further economic development. Drawing on government data and empirical research, the book examines India and China’s relative growth in trade, investments, renewable energy technologies, urbanisation, and employment and their policies on agriculture, land use, public health, and rural-urban inequality. Further, it discusses the shared challenges of inequality, poverty, gender disparity, and environment degradation which both countries face and contrasts their policy priorities and governance mechanisms. Comprehensive and insightful, this book will be of great interest for researchers and scholars of development studies, economics, international relations, comparative politics, sociology, public policy, and Asian studies. It will also be useful for think tanks, policy makers, and general readers interested in the India–China relationship.

China and India

China and India PDF Author: Dilip K. Das
Publisher: Routledge
ISBN: 1134134924
Category : Business & Economics
Languages : en
Pages : 391

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Book Description
The economies of the People’s Republic of China and India are emerging-market economies, which account for more than a third of the global population. These two economies share many similarities in that they are large populous neighbours, who were regarded as abjectly poor countries until the 1980s and both are ancient cultures which has both advantages and disadvantages for economic development. However, their political systems are very different. While India is an open democratic society, China is a closed society run in an authoritarian manner by the Chinese Communist Party. This dissimilarity impacts on the economic decision making process in the two economies. This book is the first to systematically compare and contrast the two economies. It takes an objective and dispassionate view and delves into the constructive and favourable side as well as adverse and unfavourable side of the two economies. Written in a comprehensive and authoritative manner, it covers large areas of the two economies, including trade and financial sectors. It also includes other important relevant facets of the two economies.

Socio-Economic Development: Concepts, Methodologies, Tools, and Applications

Socio-Economic Development: Concepts, Methodologies, Tools, and Applications PDF Author: Management Association, Information Resources
Publisher: IGI Global
ISBN: 1522573127
Category : Business & Economics
Languages : en
Pages : 1699

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Book Description
The social and economic systems of any country are influenced by a range of factors including income and education. As such, it is vital to examine how these factors are creating opportunities to improve both the economy and the lives of people within these countries. Socio-Economic Development: Concepts, Methodologies, Tools, and Applications provides a critical look at the process of social and economic transformation based on environmental and cultural factors including income, skills development, employment, and education. Highlighting a range of topics such as economics, social change, and e-governance, this multi-volume book is designed for policymakers, practitioners, city-development planners, academicians, government officials, and graduate-level students interested in emerging perspectives on socio-economic development.

China's Economic Miracle

China's Economic Miracle PDF Author: Sumei Tang
Publisher: Edward Elgar Publishing
ISBN: 1781953538
Category : Business & Economics
Languages : en
Pages : 214

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Book Description
This insightful book analyses the impact of Foreign Direct Investment (FDI) in China as well as making valuable contributions to the theory of FDI more broadly. the authors provide empirical analysis of key factors including the location-specific determinants of FDI; the impact of FDI on domestic investment, income distribution, consumption and tourism; the relationship between FDI inflows and income inequality; causality between FDI, domestic investment and economic growth; and causality between FDI and tourism. the study concludes that FDI plays a crucial and positive role in the economic development of China. Rather than crowding out domestic investment, FDI is found to stimulate economic growth by complementing it. China's Economic Miracle will be warmly welcomed by potential investors who are interested in investing in China. It will be highly useful for academics and postgraduate students with an interest in FDI or the Chinese economy. With strong policy-oriented analyses and discussions on implications the book will also prove invaluable to policy-makers in various government and private sectors who have trade-links with China.