The paper 'Economic Development of China and India' is a great example of a Macro and Microeconomics Case Study. The economic growth of a country has long been regarded from the perception of productive capacity. However, it is critical to note that a stronger economy would assist in improving the purchasing power of the people, which in turn catalyzes the overall social advancement. Since the early 80s, China has been experiencing tremendous economic success, which partly relates to the population that stands at 1.34 billion. Besides, China is no longer an underdeveloped country as most studies associated it with poverty due to its closed-door policy.
For more than three decades since its inception on the country’ s economic reforms in 1978, China is currently one of the fastest-growing economies in the world as well as the largest economies among the developing countries. With the study undertaken by CNN Money, China is the second-largest economy in the world with a GDP of US$7.8 trillion which lifted the lives of over 400 million populaces in China out of poverty. Therefore, the aim of this paper is to provide literature and statistics explaining the factors causing the tremendous growth rates of the country, sustainability sources, and the differences between China and India. China’ s Economic Reforms and DevelopmentSince the early 1950s, China focused on launching various political movements that aim to speed industrialization and economic modernization with unsatisfactory results.
Consequently, with the aftermath of the Cultural Revolution, most Chinese leaders began the adoption of an economic development strategy with the aim of transforming into the market-based from the country’ s central plan of 1978. Such a decision proved to be the major contributor to China’ s rapid growth.
The key factor for the country's consistently high growth rate was due to the high capital accumulation rate associated with the advancement in technological structure (Liu, Zhang, & Zhang, 2010, 154). The country’ s high rate of capital accumulation contributed to the provision of strong force for rapid economic growth, which also makes China’ s 40% GDP. Moreover, the country initiated the open-door policy that attracted the foreign capital inflow allowing the country’ s Foreign Direct Investment (FDI) to accumulate capital as well as increasing employment.
Bramall, C. 2009. Chinese economic development. Abingdon: Routledge.
Eckstein, A. 2010. The role of foreign trade in China's economic development. China's Economic Revolution, 12(5), 233-276.
Lozeau, B. 2001. The Effects of Population Growth on Economic Performances in China and India. Brussels Journal of International Studies, 4(1), 1-8.
Liu, G. G., Zhang, S., & Zhang, Z. 2010. Investing in human capital for economic development in China. Singapore: World Scientific.
Li, X., & Hu, B. 2011. China's new deal: Economic development under international financial crisis. New York: Nova Science Publishers.
Lu, M. 2013. China's economic development: Institutions, growth and imbalances. Cheltenham, UK: Edward Elgar.
Marshall, S., Taylor, W., & Yu, X. H. 2006. Encyclopedia of developing regional communities with information and communication technology. Hershey, PA: Idea Group Reference.
Maurer-Fazio, M. G. 2011. Labor Reform in China. China's Economic Development, 3(2), 15-22.
UNDP. 2015. Work for human development: Human Development Report 2015. Briefing note for countries on the 2015 Human Development Report: China, 1-8. Retrieved from http://hdr.undp.org/sites/all/themes/hdr_theme/country-notes/CHN.pdf
Wang, Y. 2003. China's economic development and democratization. Aldershot, Hants: Ashgate.
Yueh, L. Y. 2011. Perspectives on China’s Economic Growth: Prospects and Wider Impact. China, India and Beyond, 7(5), 118-122.