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Openness and competitiveness of manufacturing sector: a comparative study of China and India

Author

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  • Santra, Swarup
  • Bagaria, Nidhi

Abstract

FDI may affect the supply of productive resources including (financial capital, equipment and machinery, technology, management and etc.). FDI creates employment where unemployment and underemployment rate is high and thus increases the income of the workers. As a result an additional savings to the host country is created. FDI also has the backward effect. Through buying locally made materials and intermediate goods it creates a good environment for the locally produced goods. For China, the competitiveness of manufacturing sector and Trade Openness are increasing over the year since 1991. However, the Financial Openness of China is showing mixed result, it increased until mid-1990s and it is showing the declining trend. In case of India, the picture is so complex. The Competitiveness of manufacturing sector and Financial Openness are showing the fluctuating path over the year. No as such trend can be found for these two series for India. Only the Trade Openness is showing increasing trend for India.

Suggested Citation

  • Santra, Swarup & Bagaria, Nidhi, 2014. "Openness and competitiveness of manufacturing sector: a comparative study of China and India," MPRA Paper 53520, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:53520
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    File URL: https://mpra.ub.uni-muenchen.de/53520/1/MPRA_paper_53520.pdf
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    References listed on IDEAS

    as
    1. Tran Van Hoa, 2001. "The Asia Recovery," Chapters, in: Tran Van Hoa (ed.), The Asia Recovery, chapter 1, Edward Elgar Publishing.
    2. Tran Van Hoa (ed.), 2001. "The Asia Recovery," Books, Edward Elgar Publishing, number 2211.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    China; India; Financial Openness; Foreign Direct Investment (FDI); Manufacturing Sector; Revealed Comparative Advantage (RCA); Trade Openness;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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