Comparative Study On The Quality Of Economic Growth Between China And India From The Perspective Of Total Factor Productivity

The comparison between China and India has always been a passion for people.In June 18,2017,China and India are became the focus of attention again with the appearance Dong Lang confrontation,the relationship and comparison are also became the hot topic once more.Along with the economic and social development continuously of the two countries,people are paying more attention on the two big countries who will go longer.After India's economic growth rate was once more than China,people are more concerned about when India can overtake China on its total amount of the economy.Various scholars have made comparative analysis of the two countries from different angles,the common view is that only the quality of economic growth can be improved,and then the economic growth will be maintained for a long time.At present,there is no consensus on the definition of economic growth quality in academic circles,and different scholars have different understandings.They can be classified into two categories: narrow sense and broad sense.The quality of economic growth,in the narrow sense,mainly refers to the efficiency of economic growth,all factors except the number of growth are included in the quality of economic growth in the broad sense.But the above meanings make the extension of the quality of economic growth unsure.Starting from the definition of the quality of economic growth in the narrow sense,we can use total factor productivity to measure the quality of economic growth.In this paper,I have made a comparative analysis on the economic growth quality between China and India from the perspective of total factor productivity.Based on the relevant data of China and India in 1980-2015 years,the total factor productivity of the two countries is calculated by the Econometric and Solow residual methods.According to the results of calculation and analysis,I have found that economic growth is driven by capital both in China and India,but the China's economic growth is more balanced than that of India;India has a higher capital utilization rate,and India's economic growth is almost entirely dependent on capital driving,in that,the effect of total factor productivity is very slight,even negative.Speaking from the point of full factor productivity,it is considered that the quality of China's economic growth is better than that of India.For there are many factors affecting the total factor productivity of the two countries,and combining the actual situation of the two countries and the factors generally involved in the existing study,the total factor productivity finally has been divided into four factors,such as technological progress factor,structural change factor,institutional change factor and human capital factor.I have found the time inflection point of the two countries through Chow test,and shown the decomposition results of the two countries by the combination of full sample regression results with piecewise sample regression results,and then verified the reason-ability of the model.The final decomposition results show that,the lags of total factor productivity(TFP)in China and India are the main factors affecting the change of total factor productivity,and China's human capital factors have not had a significant impact on China's total factor productivity from the beginning to the end.China's technological progress has a significant impact on total factor productivity,and the main impact in the period of 1980-1994,but it is not significant during the 1995-2015.However,the effect of technological progress on the increase of total factor productivity in India has been highlighted in 1990-2015.Institutional change also has a significant impact on China's total factor productivity,and the impact is mainly concentrated in the period of 1995-2015.The effect of structural changes in China is not significant in the two sublevel samples,but it has a significant impact on the whole sample period.And the there aspects of the total factor productivity changes in India have a significant impact on the 1980-2015 and 1990-2015 of the two sample periods.Furthermore,combining the influence factors of total factor productivity and the historical development of the two countries,I have made a thorough comparison and analysis.After many years of development,China and India have been at the forefront of developing countries.Although the problems in the two countries are still severe,the achievements of development are remarkable.So far,the two governments have clearly recognized the problems in their respective developing,and actively formulated corresponding reform tasks and coping strategies.According to the results of the analysis and the development of the two countries at present,this paper considers that China and India will still achieve better economic development results in the future.We should learn from experience and achievements worthy reference for each other in the comparative studies to consolidate and promote the development of the two countries,and actively expand the areas of cooperation for bilateral development with mutually beneficial.