The European Journal of Comparative Economics

ISSN: 1824-2979

EJCE Year: 2009, June. Volume: 6 - Issue: 1

Comparing China and India: Is the dividend of economic reforms polarized?

by Sudip Ranjan Basu

Start page: 57 - End page: 99

Keywords: Development; Inequality; Polarization; China; India

Jel code: C43; D63; O18

DOI:

Abstract:

The paper compares the economic performance of China and India during the period of their ongoing reform policies. It develops a new measure of development, namely, a development quality index (DQI), to compare performance of China and India. The results show that national-level development quality grew three times faster in China than in India. Conversely, the health quality index grew three times as fast in India than China over the period 1980-2004, narrowing the gap in outcomes. The overall regional development quality level improved in both countries, but polarization widened in China. The direction of overall inter-regional polarization in China indicates a rising concentration of development gains from economic reform policies. The inter-regional economic polarization in recent years is more pronounced in India.

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