Assignment:
Comparing India with China
Think of what cause the difference in FDI and economic growth in two countries, India and China, considering institutional differences of two countries.
Read the statistics below:
- India's share in global FDI remains poor at less than 1% compared with China's share of12%. Indeed,
China has received a cumulative inflow of US $480 billion since 1990 compared with US $33.1 billion
in India.
- A decade ago, India and China had roughly the same GDP per capita. But at US $440, India's current
GDP per capita is now only half that of China's.
What cause such differences in these two countries? Primarily analyze the formal and informal institutions in India and China and then compare the differences of the two.
For instance, you may consider differences in
- Political system: political paradigm, history, government intervention, democracy, corruption
- Legal system: property right, labor laws, regulations, bankruptcy procedure
- Economic system: tax system, governance, ownership, infrastructure, financial system
- Culture
- Business norms and ethics
After comparing these two countries' institutional differences, please answer to this question: What do you evaluate India from the perspective of a potential foreign investor, comparing with China? Can India catch up or surpass China?
Attachment:- References.rar