...Macro-economic Variables on the GDP of China and India by Manish Chandi Shrestha Submitted to the Program of Analytics in the Postgraduate Division of the Business School As part of the requirement for Master of Business Administration at Bournemouth University March, 2015 Contents List of acronyms i List of figures and tables ii Abstract 1 Introduction 1 Methodology 2 Data source 3 Findings 3 Interpretation 4 Conclusion 9 References 10 Appendices 11 List of Acronyms GDP Gross Domestic Product IMF International Monetary Fund IQR Inter Quartile Range ANOVA Analysis of Variance BLUE Best Linear Unbiased Estimator VIF Variance Inflation Factor List of Figures and Tables 1. Correlation Analysis of China 4 2. Correlation Analysis of India 4 3. Beta coefficients for China and India 5 4. Revised Beta Coefficients for China 5 5. Comparison between Predicted and Actual GDP for China 6 6. Comparison between Predicted and Actual GDP for India 7 7. Test of Normality of Error for China and India 7 8. Residual Statistics for India 8 9. Residual Statistics for China 8 10. Collinearity Statistics for India and China 9 Abstract This...
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...Analysis of the Gross Domestic Products of CHINA INDIA PAKISTAN Background of the Indian Economy The India economy, the third largest economy in the world in terms of purchasing power, is going to touch new heights in coming years. As predicted by Goldman Sachs, the Global Investment Bank, by 2035 India would be the third largest economy of the world just after US and China. It will grow to 60% of size of the US economy. This booming economy of today has to pass through many phases before it can achieve the current milestone of 9% GDP. | The history of Indian economy can be broadly divided into three phases: Pre- Colonial, Colonial and Post Colonial. Pre Colonial: The economic history of India since Indus Valley Civilization to 1700 AD can be categorized under this phase. During Indus Valley Civilization Indian economy was very well developed. It had very good trade relations with other parts of world, which is evident from the coins of various civilizations found at the site of Indus valley. Before the advent of the East India Company, each village in India was a self sufficient entity and was economically independent as all the economic needs were fulfilled within the village | Colonial Indian Economy: The arrival of the East India Company in India caused a huge strain to the Indian economy and there was a two-way depletion of resources. The British would buy raw materials from India at cheaper rates and the finished goods were sold at higher...
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...2010 India and China: A study in comparison [pic] Neetika Chakraborty Roll number-818 Economics (H) Third Year Acknowledgment I would like to thank my third year teachers- Ms. Nandini Kumar and Mrs. Meeta Kumar for their superior reaching capabilities and constant support. They have always been there to answer every query and help me out with research material whenever I required it. This project would not have been possible without them. This project would also not have been possible without the vast amount of data which was made available through the database of the reserve bank of India and the central bank of the Republic of China. Furthermore, I am indebted to the huge quantity of information available on the internet which was an important part of my initial research. INDEX 1. Introduction 2. Political Evolution ❖ China ❖ India ❖ Drawing a comparison 3. International Trade ❖ China ❖ India ❖ Bilateral trade between India and China 4. Population Trends ❖ Drawing a comparison 5. Conclusion 6. Bibliography Introduction China’s and India’s rapid growth and economic policies, as well as their role in International trade and capital markets, have generated a large amount of interest and research. Much of the attention focuses on their growth prospects and on their faculty to influence global governance. Two salient characteristics of China and India are...
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...INTERNATIONAL COMPARISON Conventional wisdom suggests that during the early development phase of any country, expansion of output in manufactured goods precedes growth in the services sector. As a country progresses further manufacturing often takes a back seat, giving way to the services sector in terms of both output and employment, and manufacturing firms themselves become increasingly service centric in order to remain competitive. Some have argued that the decline in manufacturing and corresponding shift to services is unsupportable in the long run as services depend critically on manufacturing for their demand. Although this argument may be applicable for certain services such as retailing and transportation, it does not entirely hold for many other services. IT in particular very high services sector growth. Russia at 5.5 per cent and Brazil at 4.0 per cent are a distant third and fourth respectively. While India’s growth rate of the services sector at 10.1 per cent in 2009 was higher than that of China at 9.6 per cent, in 2010 it has decelerated to 7.7 per cent while China’s has remained constant (Table 10.1). All this highlights the prominence of the services sector for India. Despite the higher share of services in India’s GDP and China’s dominance in manufacturing over services, the hard fact, however, is that in terms of absolute value of services GDP and also in terms of growth of services, China is still ahead of India in 2010. Services GDP: International Comparison In...
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...Economic Reforms in Asia: The Indian Case Study The Asian economy has seen a rapid rise over the past decade with countries such as China, India and South Korea making major headways. China, being the leader of the group, has been largely tipped by many economists to overtake the US as the world’s superpower by 2025. Asian GDP Performance (1997-2005) Source: http://www.treasury.gov.au The success of these nations came on the back of major economic reforms which transformed these sleeping giants into what it is today. China went through a major economic reform in 1979 and soon thereafter success followed. India, followed the same path, but much later than China, and it was not until the turn on the 1990s that India went on the path of economic liberalisation. This paper will focus on the economic reforms that took place in India and its impact on the country in terms of trade and macroeconomics growth and the birth of new economy. A section of this paper will also be comparing the growth of India in comparison to its Chinese counterparts as well as discuss reasoning behind critics who believe liberalisation was not the main contributor to the growth India is achieving today. Pre-Reform Period Post independence, India saw the need to move from an agrarian economy to an industrial one and as such building its competency in crucial sectors of the economy was important. The role of government therefore included economic management...
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...NBER WORKING PAPER SERIES ACCOUNTING FOR GROWTH: COMPARING CHINA AND INDIA Barry Bosworth Susan M. Collins Working Paper 12943 http://www.nber.org/papers/w12943 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 February 2007 We are very indebted to Anthony Liu and Gabriel Chodorow-Reich for extensive assistance in understanding the data and constructing the growth accounts. This paper was presented at the annual conference of the Tokyo Club Foundation for Global Studies, December 6-7, 2006. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research. © 2007 by Barry Bosworth and Susan M. Collins. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. Accounting for Growth: Comparing China and India Barry Bosworth and Susan M. Collins NBER Working Paper No. 12943 February 2007 JEL No. F43,O1,O4 ABSTRACT We compare the recent economic performances of China and India using a simple growth accounting framework that produces estimates of the contribution of labor, capital, education, and total factor productivity for the three sectors of agriculture, industry, and services as well as for the aggregate economy. Our analysis incorporates recent data revisions in both countries and includes extensive discussion of the underlying data...
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...Economic Growth: Comparison of Australia, USA and India Subject: HI5003 Economics for Business Submitted by: Anju Kattel Panta OLI2392 Binu Pokhrel Neupane EMV2704 Harpreet Kaur PCC2409 Rachel Chomapoy BRI2029 Khadijah Iftaqar BSI2129 Shama Shrestha EMV2816 Wangyang Wei ANY2083 Date: 6 June, 2014 Introduction to Economic Growth In this report, the economic growth of Australia, USA and India is discussed. Economic growth is key factor to economic development. People of the nation are benefited when national income grows. The is no any scientific method of formula to measure the economic growth whereas the data, charts and other information can be helpful for strategy-makers to understand the countries’ economic positions and design a framework to guide for an effort toward development. Data are the artefacts covering measures of economic growth, such as gross domestic product (GDP) and gross national income (GNI). They also have pointers representing elements known to be appropriate to economic growth, such as capital stock, employment, investment, savings, consumption, government spending, imports, and exports (The World Bank, 2014). GDP is considered to be one of the basic indicators that assess a country’s economy growth. According to The statistics Portal (2014) GDP is defined as market value goods and services produced by using the resources and capital of the country in provided span of time irrespective of nationality. Normally, it is calculated...
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...Key risks for Investment in India * On the quality parameter of properties, India was lacking across major estate types. * Do not have financially strong infrastructure for building new properties and supporting new investments * Political risk in involved in Indian investments as it is difficult to come to any decision in the coalition government and sometimes it leads to much delay in the projects. * On Foreign exchange currency risk, Indian currency is more volatile and thus devaluation can lead to greater loses. * Indian Bond markets are not fully developed. * Investments in property and Infrastructure sectors are less risky than as compared to other sectors. * There are restrictions on investments in Kashmir, as it is military affected area. * Risk due to terrorism can decrease investor’s confidence. Similarly Maoists activities are and obstacles for investments certain regions of India. * There is legislation risk involved in India. As it has been the case with Vodafone deal where Indian government came with retrospective tax proposal to dole out tax from Vodafone deal. * Monetary policies keep on changing in India on regular basis. Key risks for Investments in China * Like India, estate types(across all major), China lacks on quality aspect of properties. * China is riskier on political aspect. Communist government policies fears a bigger threat for Investment in China and all the types of protests are simply tackled and...
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...Trends, Policy Influences, and Economic Effects in China and India Through 2025 JULIE DAVANZO, HARUN DOGO, AND CLIFFORD A. GRAMMICH WR-849 April 2011 This product is part of the RAND National Security Research Division working paper series. RAND working papers are intended to share researchers’ latest findings and to solicit informal peer review. They have been approved for circulation by RAND National Security Research Division but have not been formally edited or peer reviewed. Unless otherwise indicated, working papers can be quoted and cited without permission of the author, provided the source is clearly referred to as a working paper. RAND’s publications do not necessarily reflect the opinions of its research clients and sponsors. is a registered trademark. Preface In this paper we compare the recent and likely future demographic situations in China and India and their implications. This is a background paper for the chapter, “Population Trends in China and India: Demographic Dividend or Demographic Drag?. in the RAND report, China And India, 2025: A Comparative Assessment, MG-1009OSD, by Charles Wolf, Jr., Siddhartha Dalal, Julie DaVanzo, Eric V. Larson, Alisher R. Akhmedjonov, Harun Dogo, Meilinda Huang, and Silvia Montoya, and contains some of material referenced therein. The RAND report was done under the sponsorship of the Office of Net Assessment with the objective of understanding how China and India will compare to one another in 2020-2025 with regards...
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...The argument is agreeable that Trade liberalization happening in many countries in context of globalization especially in Asian countries like INDIA, Indonesia, China and other countries in Asia, has been helped by the economic reform measures taken. While talking about globalization and trade liberalization of INDIA, it’s important to know the major steps taken by India in last few years to be a part of the world market with foreign direct investment, free trade and levied tariffs on taxes, and other duties on like export and import duties etc. “Globalization is the process of world shrinkage, of distances getting shorter, things moving closer. It pertains to the increasing ease with which somebody on one side of the world can interact, to mutual benefit, with somebody on the other side of the world.” (Larsson, 2001) Guy Brainbant: says that the process of globalisation not only includes opening up of world trade, development of advanced means of communication, internationalisation of financial markets, growing importance of MNC's, population migrations and more generally increased mobility of persons, goods, capital, data and ideas but also infections, diseases and pollution. (Brainbant, 2006) Globalisation is a new mantra which has come to rule the world since late 20th century especially after important historical events such as Soviet Union breaking into pieces and end of world cold war since then the global picture has come into existence. The trend of relying market...
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...ISSN: 2319-5894 Pharma Utility Volume 8, Issue 1- 2, 2014 Brief Report Indian Chemical Industry: A Potential Chemical Hub for Exploration at World Market Authors: Amrit B Karmarkar*1, Avinash D Deodhar1, Aditya A Holikar2 Affiliations: 1. Director, InClinition, Dombivli East, Mumbai Area, India 2. Research Associate, InClinition, Dombivli East, Mumbai Area, India Email: amrit@inclinition.com Cellular: +91-8898904115 Introduction of Chemical Industry Chemicals are the basic necessity of day to day life for creature to survive on earth. The chemicals whether being natural or synthetic they are helpful to each and every creature for the survival. Right from the food we eat, clothes we wear or the cars we drive all the things are significantly based on the chemicals which helps to enhance the quality of life through various new innovations. The use of chemicals is mentioned from the ancient time to the modern era. As the development on earth started from the ancient era to modern era for the survival and the enhancement of the chemicals, their forms and their uses changed. Development of synthetic chemicals took place by setting up the chemical factory in countries and then export and import of chemicals from country to country. As the modern era is concern, the chemical industry has acquired the special attention by Compound Annual Growth Rate (CAGR) at 5.9% for the revenue generation of $ 3,519 billion till year 2010. It is expected to grow up to 8.1% generating $ 5,185 billion...
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...Indian Economy 3 India GDP Growth Rate 3 History of the Chinese Economy 4 China GDP Growth Rate 4 Economy of India 5 GDP 5 Unemployment 6 Inflation 7 Economy of China 8 GDP 8 Unemployment 9 Inflation 10 India's Export and Import 11 China's Export and Import 12 China and India Export and Import 13 Analysis and Findings...
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...Environment. The business environments of China and India impact how Lazybones will conduct potential operations, and must therefore be investigated. 5.1 Free Trade Agreements. After 21 rounds of negotiations beginning in 2005, on 17 June 2015 the China-Australia free trade agreement was signed; worth almost $160 Billion (Dfat,2015).The Agreement secures better market access for Australia to the world’s second largest economy, improves our competitive position in a rapidly growing market, and promotes increased two-way investment and reduces import costs (Trade,2015).More than 85 per cent of Australian goods exports will be tariff free, rising to 95 per cent on full implementation.(Trade,2015).China is our biggest export and import market(Dfat,2015). This FTA will only strengthen our country’s relationship, giving us most favoured nation status by helping Australian companies to conduct operation with China.This will greatly benefit Lazybones potential manufacturing sourcing as it will ease the implementation and business relations within China because of our strong relationship. The FTA will ease the barrier to entry for Lazybones in China as the company can capitalise on the political and economic ties Australia has, which ultimately builds business relations and growth. (Image-Retrieved from Austrade 2014) A comprehensive economic cooperation agreement between Australia and India was launched in May 2011.There have been...
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...Cadim: The China and India Real Estate Market Entry Decisions I. INTRODUCTION Cadim is a real estate division of Caisse de Depot et Placement du Quebec (Caisse), Canada’s largest pension fund management firm. Caisse is the largest institutional investor in Canada, overseeing more than $245 billion in assets and carrying out more than $12 billion in transactions daily. Cadim is one of Caisse’s three real estate divisions comprising around 6.23% of Caisses portfolio ($15.3 billion). Cadim focuses on residential and hotel markets, while the other two real estate arms focus primarily on shopping malls and business. Currently Richard Dansereau, Cadim’s Chief Operating Officer is in the process of deciding whether or not to move in to the India and China real estate markets. This case study will review the key issues, the general environment of India and China, Cadim SWOT, alternatives to moving into India and China and will conclude with our recommended course of action. II. KEY ISSUES Richard Dansereau, Cadim’s Chief Operating Officer has been tasked with making the final decision whether to enter real estate markets in India and China. Cadim has been forced to look toward external markets due to the average risk- adjusted return of real estate in their current markers, North America, averaging considerably below Cadim’s internal required return rate...
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...Overview China and India provide vast opportunities for trade and investments in all major sectors. In the next few decades, China and India will join the U.S to become the three largest economies in the world. China and India will provide enormous upside potential for U.S. firms, as well as risks. Cultural System Doing business in a particular nation needs a multi-dimensional understanding of its culture and business practices. Understanding those differences and adapting to them is the key factor. India The Indian economy has been booming for the past few years. The country holds great promise for the future. The business culture of India is a reflection of the various norms and standards followed by its’ people. Indians have various cultural yardsticks, which extend to their business culture too. I found the following culture norms to be important: 1. “The ‘Namaste’ forms an important part of Indian etiquette and is generally used while greeting and saying good-bye. This gesture is performed by pressing the palms of both hands together (fingers up).” However, educated Indian men and women, who are acquainted with western customs, prefer shaking hands. Moreover, while greeting any individual use his or her title. To mark respect, you may also add a suffix ‘ji’ to the name of a person. 2. In India, companies follow a hierarchical system and the decision making is usually from the top to bottom. Business decisions could be at times time consuming, and International...
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