C. Veeramani, Lakshmi A, Prachi Gupta
We decompose India’s export performance in manufactured products during 2000-2015 into changes at the intensive and extensive margins. India’s performance, along different margins, is compared and contrasted with that of China. The results show that while China outperforms India at both the margins, the gap is particularly wide at the intensive margin. Decomposition of intensive margin along quantity and price margins shows that Chinese products are generally sold cheaper than Indian products. Higher price margin, however, has not translated into high intensive margin for India due to its abysmally low quantity margin. We examine different explanations for China’s superior performance relative to India, along different margins, using a gravity model. Our results suggest that China’s exchange rate policy was not the prime reason for its export success. Neither do we find that FDI inflows were significant in explaining the export performance gap between them. The results show that China’s export relationship bias towards high-income partner countries holds the key in understanding its superior performance. This bias is a natural consequence of China’s high degree of specialization in labor-intensive activities. India, by contrast, due to an idiosyncratic pattern of specialization, has failed to exploit its export potential in high income countries.
Leah C. Stokes, Amanda Giang, and Noelle E. Selin
Global Environmental Politics , Vol. 16, No. 4 November 2016
International environmental negotiations often involve conflicts between developed and developing countries. However, considering environmental cooperation in a North-South dichotomy obscures important variation within the Global South, particularly as emerging economies become more important politically, economically, and environmentally. This article examines change in the Southern coalition in environmental negotiations, using the recently concluded Minamata Convention on Mercury as its primary case. Focusing on India and China, we argue that three key factors explain divergence in their positions as the negotiations progressed: domestic resources and regulatory politics, development constraints, and domestic scientific and technological capacity. We conclude that the intersection between scientific and technological development and domestic policy is of increasing importance in shaping emerging economies’ engagement in international environmental negotiations. We also discuss how this divergence is affecting international environmental cooperation on other issues, including the ozone and climate negotiations.
Courtesy : MIT Press
UNRISD Working Paper 2016-10
This research was conceptualized to ascertain the state response to women’s extra-procedural claims making to land through collective and individual protests, demonstrations, public performances and women farmers’ conclaves for building public opinion against the gender differential arrangements in land tenure and agrarian production system in India. An attempt was also made to understand China’s policy on women’s legal and equal rights to land since the 1950s. The author situates the discussion on women and land in the broader context of women’s emerging agential power against the patriarchal forces of the state, market fundamentalism and social cultural norms that influence both formal and informal institutions at various levels. Women’s claims are thus framed against two major related factors: an insidious state-backed development policy that keeps women dependent on the male as the head of the household; and a combination of institutional structures with social norms and legal rules that shut most rural women out of land and property ownership.
An analysis of land reform policies in China and India show that the state agencies speak simultaneously to two groups: the political elite raised with notions of gender-discriminatory forms of power who exercise influence through access to political and economic institutions; and the political constituency of organized rural women and men who wield influence through the right to vote, and therefore exercise power over the regime through the ballot box. The contradictory power bases of these two groups lead to a gap between policy rhetoric and implementation or gradualism constrained by social norms.
The research findings suggest that, as a consequence of the continued demand for women’s entitlement to land, there have been some partial and fitful changes in policies and enactment of laws in the two countries. The women who acquired an entitlement to land gained greater social status and increased bargaining power over household assets, experienced a reduction in gender-based violence, and had more of a voice in land governance as well as decision making in socio-political affairs. However, these changes are punctuated with patriarchal disorders and reversals.
The author further notes in the study that the state, in most cases, has responded to women’s protests and claims to justice and rights, in terms of formulation of policies and legal frameworks. However, these legal frameworks and policies have remained largely ineffective in changing institutions trapped in gendered norms and women’s economic dependency. There has been no significant withdrawal of male power over land and productive assets despite the fact that women and civil society groups, in large numbers, have continued with the claim that the intrinsic value of justice and right to equality lies in ensuring women’s autonomy and their freedom from violence and dependency relationships.
Review of Development Economics, Issue 1, February 2015
While over-financing caused crises and slow growth in advanced economies including Germany, France and the UK after 2008, more prudent financial deepening sustained higher economic growth in China and India—two major emerging economies in the world. The actual financial deepening ratios (AFDR) observed in the non-consolidated balance sheet from the OECD exceeded by factors of 3.5, 2.4 and 5.1 the optimal financial deepening ratios (OFDR) obtained from the solutions of dynamic general equilibrium (DGE) models of those three advanced economies. The corresponding factors were 2.3 and 0.49 for China and India respectively. Labor intensive production technology and a low OFDR relative to a high AFDR in China allowed it to grow at 10% between 1990 and 2010 period that ended with the global financial crisis. With a reasonable OFDR and low AFDR India also managed to grow at 6.5%. Thus huge gaps between the optimal and actual financial deepening ratios led to massive macroeconomic consequences as observed after the crises in 2008. Smooth, sustainable and efficient economic growth requires adoption of strategies for separating equilibria in line of Miller–Stiglitz–Roth mechanisms avoiding problems of asymmetric information in the process of financial intermediation with as narrower gaps as possible between the AFDRs and OFDRs.
Asian Affairs, Volume 47, Issue 1, 2016
Recent literature has aimed to “deconstruct” the notion of a “Sino-Indian rivalry” in Myanmar. The argument is that China’s leverage in Myanmar far outweighs India’s, and that the Tatmadaw nevertheless prevents either country’s manipulation of Myanmar. In contrast this article argues that the idea of a “Sino-Indian Great Game” still marks the Indian debate, thinking and policy on Myanmar. China’s continued rise will remain a main driver behind India’s Myanmar policy, and Myanmar will remain geostrategic relevant to India.
The article describes the historical legacy of India’s relationship with Myanmar, discusses the role of China in Indian Myanmar policies, and examines the effects of Myanmar’s democratization process. While the Myanmar playing field has changed, Indian perceptions of a “Sino-Indian Great Game” are lasting.
by Pravakar Sahoo and abhirup Bhunia
IEG Working Paper no. 344, 2014
This paper attempts to study the conditions under which China’s manufacturing sector thrived in the last few decades. We discuss some distinctive policies (such as in decentralisation, foreign direct investment (FDI), special economic zones (SEZ), and infrastructure development) and stress the importance of a policy framework in China’s manufacturing success. It follows that India fell short on a number of aspects, and that there is considerable merit in finding lessons in China’s success for India. To add topical relevance,
we also discuss the recent policy changes in India to boost manufacturing.