Rapid and phased trade liberalization pathways to economic growth: evidences from China and India.
Category:- Journal; Year:- 2021
Discipline:- Business Administration Discipline
School:- Management and Business Administration School
This paper investigates the hypothesis that there is an association between increased levels of trade liberalisation and
economic growth through a comparative analysis of two giant emerging economies of the world – India and China. For this purpose the
paper examines trends in GDP growth and various trade openness measures via empirical analysis of time-series data of the last 43 years,
based on eight key indicators to compare the experiences of the two countries. These indicate that rapid and gradual trade liberalisation
of both the countries, coupled with supporting economic, institutional, and infrastructural reforms, and advancement in technology led to
the linking of these giants with the global markets, which has significantly contributed towards their economic growth, thereby supporting
the phenomena that there is a significant positive relationship between liberalisation and economic growth. While China was seen to be
experiencing growth, India was also on the right track. Indicators of both liberalisation and growth reveal that both the countries enhanced
their economy significantly as they embraced international trade through trade reforms and economic liberalisation.