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Economic Reforms, Regionalism, and Exports Comparing China and India Policy Studies East-West Center Washington

Ganeshan Wignaraja

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ISBN 10: 1932728945 / ISBN 13: 9781932728941
Published by East-West Center
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98 pages. Dimensions: 9.2in. x 6.1in. x 0.2in.This paper undertakes a comparative empirical assessment of economic reforms and exports in the rising Asian giants, China and India. It explores the past record and future challenges. In recent years, China has surged ahead of India to dominate world manufactured exports, but India has acquired competitive capabilities in skill-intensive services. Favorable initial conditions (e. g. , large markets and low-cost productive labor) shaped the giants success. While the gradual switch to market-oriented reforms in the late-1970s drove trade-led growth in the giants, China was swifter and more coordinated. It introduced an open door policy towards foreign direct investment (FDI), actively facilitated technological upgrading of FDI, steadily liberalized a controlled import regime, ensured a competitive exchange rate, and concluded more comprehensive free trade agreements (FTAs) with Asian developing economies. India has attempted to enact economic reforms since 1991, particularly to attract FDI and liberalize imports. Therefore, one might expect the gap in trade performance between China and India to narrow over time. However, both giants face an uncertain world economy after the global financial crisis, and future success will depend on evolving reforms. Critical areas are how the giants respond to integrating with production networks, promote technology development, manage real exchange rates, and mitigate the risk of protectionism. This item ships from multiple locations. Your book may arrive from Roseburg,OR, La Vergne,TN. Bookseller Inventory # 9781932728941

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Bibliographic Details

Title: Economic Reforms, Regionalism, and Exports ...

Publisher: East-West Center

Binding: Paperback

Book Condition:New

Book Type: Paperback

About this title

Synopsis:

This paper undertakes a comparative empirical assessment of economic reforms and exports in the rising Asian giants, China and India. It explores the past record and future challenges. In recent years, China has surged ahead of India to dominate world manufactured exports, but India has acquired competitive capabilities in skill-intensive services. Favorable initial conditions (e.g., large markets and low-cost productive labor) shaped the giants' success. While the gradual switch to market-oriented reforms in the late-1970s drove trade-led growth in the giants, China was swifter and more coordinated. It introduced an open door policy towards foreign direct investment (FDI), actively facilitated technological upgrading of FDI, steadily liberalized a controlled import regime, ensured a competitive exchange rate, and concluded more comprehensive free trade agreements (FTAs) with Asian developing economies. India has attempted to enact economic reforms since 1991, particularly to attract FDI and liberalize imports. Therefore, one might expect the gap in trade performance between China and India to narrow over time. However, both giants face an uncertain world economy after the global financial crisis, and future success will depend on evolving reforms. Critical areas are how the giants respond to integrating with production networks, promote technology development, manage real exchange rates, and mitigate the risk of protectionism.

About the Author:

Ganeshan Wignaraja is Director of Research at the ADBI. Previously, he was Principal Economist at the Asian Development Bank s (ADB) Office of Regional Economic Integration, Chief Programme Officer at the Commonwealth Secretariat, and a manager in an economics consulting firm in the United Kingdom. He has a DPhil in economics from Oxford University.

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