India China & US – A
Comparative study of the
Recent Trends in their
1. CAPT. Dr. M. Venkataramanan
Department of Economics
D G Vaishnav College
2. Mrs. S.V.Nandini
Department of Economics
D G Vaishnav College
India, China & US – A Comparative Study of the Recent Trends in their Economic Growth. In the words of Swami Vivekananda “There runs an economic struggle through every religious struggle. The animal called man has some religious influence but he is guided by economy. You may preach a religion that may not be perfect in every detail but if there is an economic background and you have the most ardent champions to preach it you can convince a whole country”. These words do portray the importance of an economy and its growth to the common man. The economics of growth and development have attracted the attention of economists since the time of Adam Smith. Economic growth in terms of GDP estimates is regarded as an indicator or benchmark of the level of development of any Country. Cross country comparisons of economic size and standards of living of the average citizen rely on GDP estimates or per capita income. Certain economists have tried to measure development in terms of social indicators. Morris.D.Morris constructed a composite Physical Quality of Life index in 1979 combining three indicators namely infant mortality, life expectancy at age one and basic literacy at age fifteen. Since 1990 the UNDP has been presenting the measurement of development in terms of Human Development Index constructed in terms of three indicators namely life expectancy, adult literacy and years of schooling. However the growth rate of the economy still continues to be measured in terms of GDP estimates. In this era of globalization the GNP of a country is significantly affected by economic upswings and downturns in other economies. The global financial crisis which was triggered by factors like housing bubble followed by the sub prime crisis in US, emergence of securities associated with increasing risks in the financial markets in the name of financial innovations, deregulation in various forms has led to failure of key businesses, decline in consumer wealth, significant decline in economic activity and substantial financial commitments in the form of fiscal stimulus incurred by the various governments. The global recession has affected the GDP growth rates of various economies in varying degrees. In this current scenario the present paper attempts at making a comparative study of the recent growth trends reflected by the GDP estimates in the economies of India, China and US. The economies of India and China have been chosen as they have been recognized as the emerging economies and US as it is the most dominant and powerful economy of the world. Objectives of the Study
i) To compare macro economic growth variables like GDP, share of the agriculture, industry and service sector on the GDP between the three economies of India, China and US for the period 2005-2009. ii) To compare the GNI per capita between the three economies. iii) To assess the growth in gross capital formation as a percentage of GDP for the three economies. iv) To highlight the change in the public debt as a percentage of GDP. v) To test the significance of the variables contributing to the GDP of India . vi) To present a few studies debating on the issue as to whether China or US is the world’s largest economy and the facts to endorse the view.
Methodology of the Study
The study makes use of secondary data for the analysis. To provide a common platform for comparison, the data for the three economies has been obtained from the world development indicators published by the World Bank. To facilitate comparison across a special atlas method of conversion is used by the World Bank. This applies a conversion factor that averages the exchange rate for a given year and the two...
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