Factors Behind Growth for India and China- A Access for the Period of 1981-2017
Amit Chatterjee1, Devi Prasad Dash2, Ramesh Chandra Das3, Subhasis Sen4

1Amit Chatterjee, School of Economics, MIT-WPU, Pune (Maharashtra), India. 

2Devi Prasad Dash, School of Economics, MIT-WPU, Pune (Maharashtra), India. 

3Ramesh Chandra Das, Department of Economics with Rural Development, Vidyasagar University, Midnapur (West Bengal), India.

4Subhasis Sen, Faculty, SCMHRD, Symbiosis International Deemed University, Pune (Maharashtra), India. 

Manuscript received on 10 September 2019 | Revised Manuscript received on 19 September 2019 | Manuscript Published on 11 October 2019 | PP: 486-491 | Volume-8 Issue-11S September 2019 | Retrieval Number: K108209811S19/2019©BEIESP | DOI: 10.35940/ijitee.K1082.09811S19

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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open-access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)

Abstract: This study examines the growth stories of two emerging giants of global East-India and China for the time period 1980-2017. Using regression models, our results show that FDI has no formidable impact upon the economic growth. Similarly, we find no remarkable significant impact of remittances upon economic growth for both economies. Human capital in India is found to have the better substantial impact upon economic growth compared to China, which infers that regime plays a key role in influencing growth mechanism. More importantly, the present study shows that rather than delving exclusively to foreign capital inflows, improving domestic investment cycle and rationing the domestic industry structure fuel growth and ensure competition in long run. Besides investment factors, other economic factors like gross-savings and inflation also swing economic growth in a noticeable way over the years. For both economies, our empirical results reveal that increase in inflation for a long time period cause significant negative growth dispersions. Like other traditional growth engines, our empirical results show that improvements in transport infrastructure like Air and rail transports exert positive impacts upon the growth. Hence, the study suggests much emphasis on the regional development, inequality, better macroeconomic policies to lift developing economies out of the peril of unsustained economic development in recent years.

Keywords: Economic Growth, FDI, India, China, Investment, Inflation, Remittances.
Scope of the Article: Social Sciences