The European Journal of Comparative Economics
ISSN: 1824-2979
Year: 2009, June. Volume: 6 - Issue: 1

Comparing China and India: Is the dividend of economic reforms polarized?

Sudip Ranjan Basu

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Start page: 57 - End page: 99

Development, Inequality, Polarization, China, India
The paper compares the economic performance of China and India during the period of their ongoing reform policies. It develops a new measure of development, namely, a development quality index (DQI), to compare performance of China and India. The results show that national-level development quality grew three times faster in China than in India. Conversely, the health quality index grew three times as fast in India than China over the period 1980-2004, narrowing the gap in outcomes. The overall regional development quality level improved in both countries, but polarization widened in China. The direction of overall inter-regional polarization in China indicates a rising concentration of development gains from economic reform policies. The inter-regional economic polarization in recent years is more pronounced in India.

Jel code: C43
Jel code: D63
Jel code: O18
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