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Supporting the free and competitive market in China and India: differences and evolution over time

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Author Info
Migheli Matteo ()

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Abstract

This paper analyzes the support to market competition by Indian and Chinese citizens. In particular I study the individual preferences with respect to some characteristics of a free and competitive market. The paper aims at establishing whether preferences in these countries are different and their evolution over the time. This is an important issue, as the economic literature shows that people’s preferences and policies tend to go hand in hand. This means that the analysis of today’s preferences and of their evolution over the time can be useful to forecast tomorrow’s policies. The main findings of this paper are that Indians and Chinese are different at supporting competition. The Chinese express preferences that are more in line with a free and competitive market, than Indians do. The detected time path reveals that this support has been decreasing over time during the last two decades. The two populations appear to be in favour of a capitalistic, but strictly regulated market. This can mean that the future economic policies of these Asian giants will tend to this direction. Apparently there are no risks for some form of capitalism, but likely the two countries will not adopt completely free and competitive market institutions.

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Paper provided by University of Turin in its series Department of Economics Working Papers with number 200904.

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Length: 30 pages
Date of creation: Mar 2009
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Handle: RePEc:uto:dipeco:200904

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  4. James Andreoni & Lise Vesterlund, 2001. "Which Is The Fair Sex? Gender Differences In Altruism," The Quarterly Journal of Economics, MIT Press, vol. 116(1), pages 293-312, February. [Downloadable!] (restricted)
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  5. Hayo, Bernd, 2004. "Public support for creating a market economy in Eastern Europe," Journal of Comparative Economics, Elsevier, vol. 32(4), pages 720-744, December. [Downloadable!] (restricted)
  6. Hayo, Bernd, 1999. "Knowledge and Attitude Towards European Monetary Union," Journal of Policy Modeling, Elsevier, vol. 21(5), pages 641-651, September. [Downloadable!] (restricted)
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  7. Fidrmuc, Jan, 2000. "Political support for reforms: Economics of voting in transition countries," European Economic Review, Elsevier, vol. 44(8), pages 1491-1513, August. [Downloadable!] (restricted)
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  8. Schwarze, Johannes & Harpfer, Marco, 2007. "Are people inequality averse, and do they prefer redistribution by the state?: Evidence from German longitudinal data on life satisfaction," The Journal of Socio-Economics, Elsevier, vol. 36(2), pages 233-249, April. [Downloadable!] (restricted)
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  10. Stutzer, Alois, 2004. "The role of income aspirations in individual happiness," Journal of Economic Behavior & Organization, Elsevier, vol. 54(1), pages 89-109, May. [Downloadable!] (restricted)
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  11. Richard A. Easterlin & Anke C. Zimmermann, 2008. "Life Satisfaction and Economic Conditions in East and West Germany Pre- and Post-Unification," SOEPpapers 95, DIW Berlin, The German Socio-Economic Panel (SOEP). [Downloadable!]
  12. Brainerd, Elizabeth, 1998. "Winners and Losers in Russia's Economic Transition," American Economic Review, American Economic Association, vol. 88(5), pages 1094-1116, December. [Downloadable!] (restricted)
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  14. Jan Rutkowski, 1996. "High skills pay off: the changing wage structure during economic transition in Poland," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 4(1), pages 89-112, 05. [Downloadable!] (restricted)
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