| China and India, as two shining stars in the BRICs, have explored two different development modes, in both of which China and India enjoy rapid economic growth. Especially in this global economic crisis, these two countries have materialized stable economic growth in 2008 and 2009, not only resisting the impact to their economies, but also supporting the world economy out of bottom.The review and comparative study of China and India's growth modes will help the two countries to learning from each other, and furthermore, set good examples for the developing world to discover their suitable development way.Thus, on basis of the existing research findings, I will explore better measures to comparatively study these to modes in a more comprehensive and quantitative way.Several conclusions were drawn estimates the contribution of capital accumulation, labor, and TFP to the growth of non-agriculture out:1. The growth of capital accumulation has offered the major contribution to both China and India'output growth;2. Compared to China, India conducted more effective investment, whose capital/output ratio was much lower; while China outperformed in labor-absorption and improvement of energy-intensity;3. In aspect of TFP, India had higher economic performance, because TFP contributed 10% of its Non-agriculture output while TFP provided negative contribution to China's;4. Besides some technical factors in the model and variable estimates, India's higher economic performance should be credited to its comparative advantages in government decision-making mechanism, financial markets, legal system and etc.Anyway, both China and India are facing different opportunities and challenges in the future; but if moving forward in the proper way of development, and they will certainly regain their historic glories someday. |
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