The dynamic of economic growth

Running Head : THE DYNAMIC OF ECONOMIC GROWTH

The Dynamic of Economic Growth

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The Dynamic of Economic Growth

Introduction

Today China has many of the benefits of the possible Asian common market achieved through its open door reforms in 1980s , and its close economic relationship with Hong Kong and Japan , as well as its growing contacts with Taiwan and Korea . If these benefits can be maintained without the changes that might be required to join Asian market-changes which could be politically

costly - there would be little incentive for China to join an Asian market in the short run . This could however change sharply if such a market became in fact established and China , not being a member , was excluded . That would be economically very costly for China possibly forcing it to reconsider and to adopt the policies to become a member

India possesses a distinct identity in its geography , culture , people history , and language as well as in its natural ecosystem . It is blessed with a wide variety of climates and soil types which permits the growing of many unique earthy roots , precious woods , aromatic spices , exotic flowers , balsamic resins and scented grasses . India 's botanical treasures have many fascinating worlds to discover throughout the country . A new spirit of economic freedom is now inspiring the country bringing comprehensive change to its economy . A sequence of determined economic improvement aimed at deregulating the country and stimulating foreign investment has moved India firmly into a position of the rapidly growing Asia Pacific region and set free the hidden strengths of a complex and fast changing nation

Structural and Policy Indicators in Economic Growth in China

Recent resurgence of interest in economic growth has led to a blossoming literature . Among the many approaches proposed , cross-country growth regressions have been widely applied to examine the role of various structural and policy indicators in economic growth . The findings in this large and growing literature are often conflicting and yet to be sorted out . For example , Levine and Renelt (1992 ) carried out a sensitivity analysis of the determinants of the average annual growth rate of GDP per capita for a sample of 101 countries during the period 1960-89 . According to their extreme bounds analysis , among many only three variables (i .e , investment , international trade and initial income ) are found to possess fairly robust predictive power . Recently Sala-i-Martin (1997 ) presented a more optimistic study showing that a substantial number of variables are strongly related to growth . This finding is further evaluated by Snowdown , Brian in 2006

One common feature of the existing studies is their reliance on cross-section statistics . The main drawback associated with cross-country analyses is the presence of heterogeneity in data aggregation , economic structure and institutional framework among the countries considered

Determinants of China 's Regional Growth

Given the aforementioned data , the empirical analysis begins with a baseline model which is employed to investigate the impact of physical capital accumulation and the initial income on regional...