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The integration of China and India into the world economy: a comparison

Author

Listed:
  • Isabelle Bensidoun
  • Françoise Lemoine
  • Deniz Ünal

Abstract

China and India have successfully integrated into the world economy. Once specialised in textiles, they have developed new export-oriented sectors linked to the information and communication technology (ICT), taking advantage of the globalisation process which has enlarged access to new technology, capital and markets. China has become a global export platform for electronic goods and India a global centre for ICT services. They have followed different paths of specialisation. China is heavily involved in the international segmentation of production processes in manufacturing, which is not the case of India. China is heavily specialised in mass exports of cheap goods, while India focuses on niches. Both countries are in a process of technological catch-up but in different industries. By the middle of this decade, the pattern of development followed by each of them seemed to have reached its limits and even before the shock of the global crisis in 2008, there was a debate about the changes necessary to make growth sustainable. The crisis has made clear that their long term growth will depend on their ability to build on their large domestic markets.

Suggested Citation

  • Isabelle Bensidoun & Françoise Lemoine & Deniz Ünal, 2009. "The integration of China and India into the world economy: a comparison," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 6(1), pages 131-155, June.
  • Handle: RePEc:liu:liucej:v:6:y:2009:i:1:p:131-155
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    References listed on IDEAS

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    1. GAULIER, Guillaume & LEMOINE, Francoise & UNAL-KESENCI, Deniz, 2007. "China's emergence and the reorganisation of trade flows in Asia," China Economic Review, Elsevier, vol. 18(3), pages 209-243.
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    Citations

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    Cited by:

    1. Françoise Lemoine, 2010. "Past Successes and New Challenges: China's Foreign Trade at a Turning Point," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 18(3), pages 1-23.
    2. Robert Kappel, 2010. "On the Economics of Regional Powers: Comparing China, India, Brazil, and South Africa," GIGA Working Paper Series 145, GIGA German Institute of Global and Area Studies.
    3. Heshmati, Almas & Kumbhakar, Subal C., 2010. "Technical Change and Total Factor Productivity Growth: The Case of Chinese Provinces," IZA Discussion Papers 4784, Institute for the Study of Labor (IZA).
    4. repec:uto:dipeco:201432 is not listed on IDEAS
    5. Françoise Lemoine, 2013. "From foreign trade to international investment: a new step in China’s integration with the world economy," Economic Change and Restructuring, Springer, vol. 46(1), pages 25-43, March.
    6. Christian Elleby & Wusheng Yu & Qian Yu, 2018. "The Chinese Export Displacement Effect Revisited," IFRO Working Paper 2018/02, University of Copenhagen, Department of Food and Resource Economics.
    7. Vittorio Valli & Donatella Saccone, 2015. "Structural Change, Globalization and Economic Growth in China and India," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 12(2), pages 133-163, December.
    8. Robert Kappel, 2010. "Verschiebung der globalen Machtverhältnisse durch den Aufstieg von Regionalen Führungsmächten: China, Indien, Brasilien und Südafrika," GIGA Working Paper Series 146, GIGA German Institute of Global and Area Studies.
    9. Enrico Marelli & Marcello Signorelli, 2011. "China and India: Openness, Trade and Effects on Economic Growth," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 8(1), pages 129-154, June.
    10. Amighini, Alessia A., 2012. "China and India in the international fragmentation of automobile production," China Economic Review, Elsevier, vol. 23(2), pages 325-341.
    11. Beretta, Silvio & Targetti Lenti, Renata, 2011. "“India in the Outsourcing/Offshoring Process: A Western Perspective” - L’India nel processo di outsourcing/offshoring: un punto di vista occidentale," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 64(3), pages 269-296.

    More about this item

    Keywords

    China; India; foreign trade; technology;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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