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Industrialization of China and India
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A This book provides new perspectives on recent Asian dynamism which go beyond the main-
1 stream views by attempting to situate the recent economic expansion within a broader analysis
2 of capitalist accumulation and the various processes that it generates both within and across
0 economies.
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: The contributions in the book include analyses of recent growth patterns in both China and
2
0 India; assessments of the sustainability of such growth and potential constraints and pitfalls;
t the role of international finance in affecting both national and international growth and employ-
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] ment patterns; the factors determining particular accumulation strategies; and the results of
y these strategies. Developments within the two economies of China and India are situated
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si within a broader assessment of their impacts on the world economy. Specific issues emerging
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e within the Asian region are identified, including not just the relations between the three large
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i Asian economies but also the wider geopolitical implications as well as the political economy
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U of these changes.
s This book therefore provides a more comprehensive examination of the longer-r un
e dynamics of the global capitalist system in which these economies are necessarily destined to
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a play more significant roles in future.
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E Nobuharu Yokokawa is Professor of Economics at Musashi University, Tokyo, Japan. He
b was educated at Shiga University (BA), the University of Tokyo (MSc) and Cambridge Uni-
a versity (PhD). His publications include Value, Employment and Crisis (in Japanese, Shakai
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A Hyouron Sya). He has co-e dited Crises of Global Economies and the Future of Capitalism:
d Reviving Marxian Crisis Theory (Routledge). Since 2007, he has been editor of the Uno Theory
te Newsletter. He is Chairman of the JSPE Committee for International Communication and
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n Exchange.
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y Jayati Ghosh is Professor of Economics at the Centre for Economic Studies and Planning,
b School of Social Sciences, Jawaharlal Nehru University, New Delhi. She was born in 1955 and
d educated at Delhi University, Jawaharlal Nehru University and the University of Cambridge,
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d England, where she obtained her PhD in 1983. Since 2002, she has been Executive Secretary
oa of International Development Economics Associates (IDEAs), an international network of het-
nl erodox development economists (www.networkideas.org). She is Founding Trustee of the Eco-
w nomic Research Foundation (www.macroscan.org). She received the NordSud Prize for Social
o Sciences 2010 of the Fondazione Pescarabruzzo, Italy, and was awarded the ILO Decent Work
D
Research Prize for 2010.
Robert Rowthorn is Emeritus Professor of Economics and Fellow of King’s College, Cam-
bridge. He is the author of a number of academic articles on economic growth, structural
change, international investment and the balance of payments. His books include De-
industrialisation and Foreign Trade (with John Wells). He has been a consultant on these
topics for a variety of bodies, including the International Monetary Fund, the UN Commission
on Trade and Development, the International Labour Organization and the British government.
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Industrialization of China and
India
Their impacts on the world economy
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p Edited by Nobuharu Yokokawa,
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1 Jayati Ghosh and Robert Rowthorn
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First published 2013
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
Simultaneously published in the USA and Canada
by Routledge
711 Third Avenue, New York, NY 10017
Routledge is an imprint of the Taylor & Francis Group, an informa business
© 2013 Nobuharu Yokokawa, Jayati Ghosh and Robert Rowthorn for
7 selection and editorial matter; individual contributors their contribution.
1
0 The right of Nobuharu Yokokawa, Jayati Ghosh and Robert Rowthorn to
2 be identified as the authors of the editorial material, and of the authors for
il their individual chapters, has been asserted in accordance with sections 77
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p and 78 of the Copyright, Designs and Patents Act 1988.
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1 All rights reserved. No part of this book may be reprinted or reproduced or
2 utilized in any form or by any electronic, mechanical, or other means, now
0 known or hereafter invented, including photocopying and recording, or in
0 any information storage or retrieval system, without permission in writing
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2 from the publishers.
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t Trademark notice: Product or corporate names may be trademarks or
a
] registered trademarks, and are used only for identification and explanation
y without intent to infringe.
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i
rs British Library Cataloguing in Publication Data
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v A catalogue record for this book is available from the British Library
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n Library of Congress Cataloging in Publication Data
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Industrialization of China and India : their impacts on the world economy /
es edited by Nobuharu Yokokawa, Jayati Ghosh, and Robert Rowthorn.
at p. cm.
ir Includes bibliographical references and index.
m
1. Industrialization–China. 2. industries–China. 3. Industrialization–
E India. 4. Industries–India. I. Yokokawa, Nobuharu, 1950– II. Ghosh,
b Jayati. III. Rowthorn, Bob.
a
r HC427.6.I53 2013
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338.951–dc23 2012043530
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e ISBN: 978-0-415-69947-1 (hbk)
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ni ISBN: 978-0-203-51748-2 (ebk)
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Typeset in Times New Roman
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Contents
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A List of illustrations vii
1 Notes on contributors x
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0 Acknowledgements ii
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at Introduction 1
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y NOBUHARU YOKOKAWA, JAYATI GHOSH AND
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s ROBERT ROWTHORN
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s PaRt I
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t the renaissance of China and India 7
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E 1 the impact of China and India on the advanced economies 9
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a ROBERT ROWTHORN
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d 2 the renaissance of asia and the emerging world system 30
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ni NOBUHARU YOKOKAWA
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y 3 Knowledge and the asian challenge 59
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d C. P. CHANDRASEKHAR
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o 4 Japanese corporations in China’s developing economy 88
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w HIROSHI ITAGAKI
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PaRt II
Chinese perspective 113
5 China and world development: beyond the crisis 115
DIC LO
vi Contents
6 the rise of mass capitalism in China 132
TOMOO MARUKAWA
7 theoretical possibilities of a socialist market economy and
the Chinese road 151
MAKOTO ITOH
7 PaRt III
1 Indian perspective 171
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pr 8 Growth and emergent constraints in the Indian economy in
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the context of global uncertainty 173
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2 JAYATI GHOSH
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2 9 the idiosyncratic nature of India’s economic development:
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t can it be a new model of economic development? 195
a
y] HIDEKI ESHO
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v Index 218
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Illustrations
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A Figures
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2 1.1 GDP per capita growth rates 9
0 1.2 Indian growth rates by sector 12
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2: 1.3 Real commodity prices (2005 = 100) 15
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t 1.4 Chinese current account balance as a percentage of GDP 23
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t 2.1 Dynamic industries and value added per unit of labour (VAL) 33
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i 2.3 Yuan exchange rate 51
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s 2.5 China’s specialization, 1900–2009 54
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at 3.1 Exports of goods and services (% of GDP) 61
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mi 3.2 Exports of goods as a percentage of GDP 62
E 3.3 High-technology exports (% billion) 64
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a 3.4 Share of world hi-tech manufacturing value added 69
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A 3.5 Share of hi-tech value added in manufacturing value added (%) 70
d 3.6 Exports in relation to the revenue of hi-tech manufacturing
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it industries 70
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d Kong: share of value added (%) 72
e 3.9 Structure of high-technology manufacturing in India: share of
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a value added (%) 72
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n 3.10 Research and development expenditure as a percentage of GDP 77
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o 3.11 Royalty and licence fee receipts ($ million) 81
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5.1 Current-Account and Savings-Investment balance (ratio to GDP, %) 117
5.2 Net barter terms of international trade (1980 = 100) 120
5.3 Indices of real GDP and labour employment (1992 = 100) 124
5.4 Annual growth rate of per capita real GDP and real urban wage
rate (five-year moving average, %) 128
6.1 Guerrilla handset shipments in domestic and export markets 144
6.2 The supply chain of the ‘guerrilla handset’ industry 146
viii Illustrations
8.1 Rates of growth of unemployment in India 183
8.2 India’s balance of payments ($ million) 190
9.1 Trend of the growth rates of gross domestic product (GDP) and
net national product (NNP) per capita, 1991–92 to 2009–10 (%) 198
9.2 India’s changing industrial structure (% of GDP) 200
9.3 Number of persons employed per 1,000 persons according to
usual status 203
9.4 Gross domestic savings (GDS) and gross fixed capital formation
7 (GDCF) as percentages of GDP 209
1 9.5 Net production and net imports of food grains (million tonnes) 210
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2 9.6 Trend of foreign exchange reserves (US$ million) 211
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i 9.7 Foreign exchange reserves/imports ratio (%) 212
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0 1.1 China and India in 2040: projections 10
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0 1.2 Indian exports of goods and services 13
at 1.3 UNCTAD survey, 2008–10: the most attractive locations for FDI
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si 1.4 International wage comparison (at market exchange rates), USA
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ni 1.5 Real wages and dollar wages: a numerical example of percentage
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annual growth rates 22
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e 2.1 Periodization of capitalist world systems 39
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ra 2.2 Shares in Chinese goods trade 52
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m 3.1 Selected economic and productivity indicators for the United
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b States, the EU, China and India, 1995–2010 60
a 3.2 India and China relative to the world (percentage shares) 63
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3.3 Exports of high-technology goods by region/country/economy,
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e 1995–2008 65
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ni 3.4 Shares in world industrial value added 75
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3.5 Shares in value added of commercial knowledge-intensive
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y services 75
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d 3.6 Foreign graduate student enrolment in US universities, 2004 and
de 2009 78
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o 3.7 R&D performed by majority-owned US affiliates and by all US
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n businesses, 1997–2009 79
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affiliated and unaffiliated foreign companies, 1992–2007 80
3.9 Foreign ownership of domestic inventions, 2008 82
3.10 Value added of majority-owned non-bank foreign affiliates by
area, 1999 and 2004 84
3.11 Role of foreign-invested firms in China’s exports 86
4.1 Direct inward investment in China by country, 2009–10, (unit: %,
million dollars) 93
Illustrations ix
4.2 Trends in Japanese overseas direct investment by country/region
(balance of international payments, net, flow (unit: million
dollars) 94
4.3 Trade relationship between Japan and China (unit: million
dollars) 94
4.4 Investment balance by region/sector (end of 2009) (unit: hundred
million yen, %) 95
4.5 2008 Japan’s investment in China by region (unit: million
7 dollars) 96
1 5.1 China’s total foreign trade and processing trade (US dollars, 100
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2 million) 122
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1 6.2 Share of the state, foreign and private sectors in construction,
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0 wholesaling and retailing 138
0 6.3 Shares of various types of investors in the capital investment in
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0 transportation and postal service industries, 2008 and 2004 139
at 8.1 Structural change in the Indian economy 182
y] 9.1 Gross domestic saving and gross fixed capital formation (as
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si percentage of GDP, at current market price) 199
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e 9.2 Employment and unemployment (by usual status) 202
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ni 9.3 Per 1,000 distribution of the usually employed of age 15 years
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and above by education category 204
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e 9.4 Estimates of incidence of poverty in India 205
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ra 9.5 Estimate of growth rates by Sivasubramonian 207
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