A Comparative Study On The Economic Development Models Of China And India

Since the time of 90’s years of 20 centuries, the trend of economic globalization has become increasingly obvious. The economic globalization has made an positive influence on the world economy, from which those developing countries have taken enough advantages. The economic globalization not only brought about the advanced technologies, expanded markets to the developing countries, but also the chances for those developing countries in terms of national economic growth via foreign trade. At the same time, in their courses of reform and opening policy operation, the developing countries can learn about the advanced civilization achievements, and also push the updating of the thinking methodology, as well as the improvement of economic structure. This will help to change their status of“Institution Scarcity”for modernization. Both China and India, under the background of economic globalization, have risen rapidly into two big developing countries by means of self economic reform. These two countries are the fastest countries of the world in terms of economic growth, which makes the new economic forces of the world economy. The speed of economic growth in these two countries are admired not only by those developing countries, who are in a hurry to free themselves from poverty, but also caused a strong interests of the people from the academic fields, who are eagerly going to study the trace of their economic growth as well as the comparison between them.China and India are two countries which can be compared to each other. In terms of comparative, the following aspects are considerable: First of all, they are both the big size developing countries, which are also located in the same region, being with vast territory, large populations and rich in natural resources. Secondly, China and India are both civilized ancient countries in the world, and also they have the similar long history of colony and half-colony under the imperialism powers, almost the same time span for national independence and liberalization. Lastly, the economic and social status they were facing after the independence are quite similar to each other, the two countries have the same“start up”points in terms of economic and social development. To some extent, the two countries have been influenced by the pattern of early Soviet Union, in which the heavy industry was in a high lighted position for economic development strategy. With the time passed, the traditional economic system in the two countries has gradually showed the negative results, which made the economic reform in an urgent need. Nevertheless, the basic difference exists between the two countries in terms of political and economic institutions, which also resulted in the different options made by each country for the transfer of market economy. Surprisingly, both countries have kept a sustainable and steady growth of economy. So that this is not only called for deep thought, but also is of high value for China‘s sustainable development of economy if we make a systematic and comprehensive comparison on the economic development models of the two countries, as well as the analysis on both strong and weak aspects of the two models.The basic methodology this paper adopted are as follows: using the related theory of economic development, this paper made positive analysis on the different patterns of economic development in the two countries, and by the help of this analysis results, we also made a comparison on the different economic development models of the two countries after the reform and opening policy operation. Finally the paper made a qualitative analysis on the future vision of the economic models of the two countries. The three methods are adopted in this paper in the analysis and comparison of the two economic models: firstly, analytical method of economics. The paper applies the source and trace method for economic growth, which are described in the theory of economic development, to analyze the features of economic development in the two countries, revealing the issues such as the key elements, basic means, and specific channels on which the two countries have the start up and realization of economic growth. Secondly, historical analysis method. Based on the clue of economic development history of the two countries after the independence, this paper made an analysis on the patterns of economic growth in the two countries. The paper adopted the attitudes such as taking positive evidences as basis, respecting to history and analyzing the current status, as well as emphasizing on the combination of history and present reality. The purpose doing in this way is to develop a fairly assessments on the reform and development directions of the two countries, which will also comply with the historic practices. Thirdly, Comparative analytical method. In terms of horizontal comparison for the economic development of the two countries, the paper made a in depth and detailed comparison in three aspects such as initial conditions, mechanism of development as well as achievements of development. This helps to explore the specific features of the patterns of economic growth in the two countries. At the same time, the paper also made a vertical comparison on the economy of two countries both before and after the reform operation, which implies the right reasons that the institutional innovation i.e. reform and opening operation made the start up of two countries’economic growth.This paper consists of six chapters:First part introduction: describing the background and value of the selected issue, reviewing the related theory and early researches on the patterns of economic growth in the two countries. This part also made some explanations on such aspects as the thoughts, methodology, structure of the research, the key innovative points and issues still in need of improvement.Chapter two: identification and analysis on the patterns of economic growth. Based on the thoughts of those theory of economic growth, this chapter made an explanation on the basic concepts and terminologies quoted in the paper on the analysis of the patterns for economic growth of the two countries.Chapter three: patterns analysis on China’s economic growth. Based on the initial conditions for China’s economic growth, the paper in this section separated the patterns of China’s economic growth in two forms: the pattern of former reform, which is the planned economy; and the pattern of post reform, which is the socialist market economy. For each of the pattern, the paper made the discussion in three aspects: features of the pattern, performance of development as well as existing problem issues.Chapter four: patterns analysis on India’s economic growth. Based on the initial conditions for India’s economic growth, the paper in this section separated the patterns of India’s economic growth in two forms: the pattern of former reform, which is the traditional mixed economy; and the pattern of post reform, which is the India’s economy in 90’s after liberalization. For each of the pattern, the paper made the discussion in three aspects: features of the pattern, performance of development as well as existing problem issues.Chapter five: Comparison of the patterns for economic growth between the two countries and some enlightenments. This chapter firstly made a comparison among the common points and differences of the two countries in terms of economic growth. Secondly, the chapter made a comparison on the performances of economic growth after the reform operation in four aspects such as: economic scales, economic growth, foreign trade and capital flow, as well as comprehensive development indicators; later the chapter made an analysis on the sustainability of future economic growth for the two countries; finally the chapter proposed some enlightenments regarding the comparison of economic growth pattern of the two countries.Chapter six conclusion: emphasis is made in this chapter on the value of the economic rising for the two countries. The value of the peaceful rising for the two countries in terms of economic growth lies in such important issues as: poverty reduction, stimulation on the world’s economic growth, as well as the references for other developing countries, etc.