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Singapore's state capitalism vs. the Indian economy: comparing the economic systems of two potential allies


  • Dasgupta, Manjira


This paper studies the phenomenon of “State Capitalism”, undertaking a comparative analysis of the economies of Singapore and India, two potentially strong Asian allies in today’s global economic order. Practised and adopted in many variants over the world, the “New” variant of “State Capitalism” as pursued in the emerging city-nation of Singapore has enabled it to achieve remarkable successes, posing challenges to bigger economies. India, on the other hand, began its newly independent planned industrialization under a conventional “State Capitalism” regime, but soon got mired in bureaucratic shackling. Subsequent to widespread Structural Adjustment Programmes in 1991, it is only recently that India has started emerging as a strength-gathering and rapidly developing nation, although its successes, compared to Singapore, have been modest on many fronts. This paper compares the two nations’ performances on various aspects including economic, political and a body of “freedom indices” using Time Series data on National Accounts and other selected economic indicators. “Freedom” indices for both countries are found to be correlated to respective economic indicators. Singapore is found to have much healthier economic indicators with higher “freedom” rankings. The lessons India can emulate from Singapore’s development experiences are also highlighted.

Suggested Citation

  • Dasgupta, Manjira, 2013. "Singapore's state capitalism vs. the Indian economy: comparing the economic systems of two potential allies," MPRA Paper 54631, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:54631

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    References listed on IDEAS

    1. Geert Bekaert & Campbell R. Harvey, 2000. "Foreign Speculators and Emerging Equity Markets," Journal of Finance, American Finance Association, vol. 55(2), pages 565-613, April.
    2. Bekaert, Geert & Harvey, Campbell R. & Lundblad, Christian, 2006. "Growth volatility and financial liberalization," Journal of International Money and Finance, Elsevier, vol. 25(3), pages 370-403, April.
    3. Anusha Chari & Peter Blair Henry, 2004. "Risk Sharing and Asset Prices: Evidence from a Natural Experiment," Journal of Finance, American Finance Association, vol. 59(3), pages 1295-1324, June.
    4. William Miles, 2002. "Financial Deregulation And Volatility In Emerging Equity Markets," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 27(2), pages 113-126, December.
    5. Benoit Mandelbrot, 2015. "The Variation of Certain Speculative Prices," World Scientific Book Chapters,in: THE WORLD SCIENTIFIC HANDBOOK OF FUTURES MARKETS, chapter 3, pages 39-78 World Scientific Publishing Co. Pte. Ltd..
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    More about this item


    State Capitalism; Freedom Index; Fiscal Policy; Singapore; India;

    JEL classification:

    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • P5 - Economic Systems - - Comparative Economic Systems
    • P51 - Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems

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