Skip to main content
main-content
Top

About this book

This book is one of the first fully-fledged studies to examine the next world-class industrial leaders emerging from China and India; exploring the domestic and international factors that have led to their rise, and comparing their experiences with other East Asian late-comers such as Japan.

Table of Contents

Frontmatter

Introduction: Different Competition, Different Industrial Dynamics

Introduction: Different Competition, Different Industrial Dynamics

Abstract
In the first decade since 2000, China and India have entered into a new era of industrial upsurge, which has made their economic landscapes in the early 2010s enormously different from those of the 1990s. Though the two countries have accelerated deep-going liberalization reforms since the early 1990s (Joshi 1998, Naughton 2007, and Acharya 2009), however, the growth paths of the two have varied greatly, not only in terms of their macroeconomic appearances, but also in terms of the micro-level realities. The aim of this book is to present a detailed comparison of the growth trajectories of representative indigenous firms and clusters during the two decades after the 1990s in China and India, and to explore their relative characteristics in the industrial development process. We also seek to comprehend the underlying socioeconomic backgrounds that have engendered such disparate features.
Moriki Ohara

Firms and Competition

Frontmatter

1. Competition and Management in the Manufacturing Sector in China and India: A Statistical Overview

Abstract
The per capita GDP of China and India remained almost the same until 1990, when it stood at USD388 for India and USD343 for China. However, the pace of increase subsequently widened significantly, leading to a gap in the average annual growth of the per capita GDPs during the period from 1990 to 2008, when it grew by 13.3% for China and 5.5% for India. As a result, in 2008, per capita GDP in China was USD3,266, three times more than India’s, which was USD1,017. As far as GDP growth is concerned, China seems to follow the path of its East Asian antecessors, Taiwan and Korea, in a 25-year time lag, whereas India does not seem to have entered into such a trajectory of high economic growth.
Moriki Ohara, Hong Lin

2. China and India’s Electrical and Electronics Industries: A Comparison between Market Structures

Abstract
Growing countries do not necessarily follow the same industrial development process, despite sharing similar starting points. China and India have both been growing remarkably under gradual economic liberalization since the 1980s; however, they show a significant contrast in industrial development processes. As we see later, the role of secondary industry in the Chinese economy is consistently larger than that in India.
Koichiro Kimura

Capability Formation: Skills, Technology, and Innovation

Frontmatter

3. Technology Acquisition by Indigenous Firms: The Case of the Chinese and Indian Automobile Industries

Abstract
The economic crisis which has plagued the world since 2008 led to the sharp decline of automobile production in Japan and the United States in 2009. In China, on the other hand, stimulated by fiscal policy to boost domestic demand, automobile production grew by 48% in 2009 compared to the previous year. As a result, China has — for the first time in history — become the largest automobile-producing country in the world (Figure 3.1). China is also the largest automobile market in the world — in terms of the number of vehicles sold. Judging from recent trends, China will be the largest automobile producer and market for years to come.
Tomoo Marukawa

4. Capability-Building via Interfirm Relationship and In-House Employment in China and India: A Comparative Study of the Motorcycle Industry

Abstract
This paper compares the firm-level capability-building systems — both interfirm and in-house — in China and India by closely observing the operations of major indigenous motorcycle manufacturers — makers — and their major components manufacturers — suppliers — in the two countries. The study examines how the skill/knowledge formation of both staff and workers has been conducted within firms, and how interfirm organization of the division of labor supports the upgrading of manufacturing capabilities.
Moriki Ohara

5. Skill Formation through Education and Training: A Comparison of China and India

Abstract
Human capital is considered one of the most important sources of economic growth (Lucas 1988; Romer 1986). Many empirical studies found a positive association between the quantity of education and economic growth (Barro 1991; Benhabib and Spiegel 1994). Quality of education also matters (Hanushek and Kimko 2000). Not only average skill level, but also the pattern of skill distribution in the economy affects its industrial comparative advantage (Bombardini et al. 2009; Grossman 2004; Grossman and Maggi 2000). Examining quantity, quality, and distribution of skills and the mechanisms of how these skills are generated in an economy has important implications for understanding the path of economic development in the past and the future.
Yoko Asuyama

6. The Institutional Milieu of Skill Formation: A Comparative Study of Two Textile Regions in India and China

Abstract
Growth has been increasingly found to occur in regional agglomerations of firms producing interlinked goods and services. Such dynamic agglomerations/clusters in the “developing” countries have gained more visibility recently among policy makers and global capital looking for “effective” locations. The growing recognition of such phenomena — along with a perceived reduction in the role of the nation-state — has led to scholars arguing a case for the rescaling of economic regulation (Peck 2002). Since then, the “regional agglomeration” has emerged as a prime target for intervention, to improve the ability of these agglomerations to compete in global markets. Critical to the dynamism of such clusters is an array of institutions ranging from those that reduce transaction costs, to those that help them dynamically compete — provisioning of credit, technological capabilities and market information. A vital component of this local institutional milieu is a dynamic labor market that fosters skill formation and diffusion across firms. Creating such conditions for skill formation and social upgrading is a key challenge for policy makers in the developing world, as they seek to negotiate the imperatives of production for global markets and move into more value-adding segments of global-value chains.
M. Vijayabaskar, J. Jeyaranjan

The Role of the State and the Global Production Network

Frontmatter

7. Two Tales of Agro-Industrial Transformation: State Capacity in China’s and India’s Textile Industries

Abstract
It is widely understand that the textile industry historically has established the link between primary agricultural production and industrialization (Anderson 1992; Farnie and Jeremy 2004). While the industry was central to the early phases of industrialization in Britain and Europe, the same can also be said of late developers. In Japan, textiles were critical to the country’s early industrial development and it was further built up into a globally competitive industry in the interwar period (Lockwood 1965; McNamara 1995; Smitka 1998). In the immediate post-World War Two era, trade frictions between advanced economies first erupted over textiles exports — a harbinger of subsequent trade conflicts (Aggarwal 1985). While Japanese and British colonialism in East Asia planted the seeds of multiple industries, early postwar industrialization in the East Asian NICs — including South Korea, Taiwan, and Hong Kong — has similarly been dominated by textiles (Hsueh et al. 2001; Inoue et al. 1993; McNamara 2002).
Mark P. Dallas

8. Local Finance and Governments in the Economic Development of China and India: Distribution and Economic Efficiency

Abstract
Many recent studies show that enterprises in both China and India have more problems with “misallocation” than US companies do, and this leads to low productivity.
Kai Kajitani

9. The Electric Vehicle Industry in China and India: The Role of Governments for Industry Development

Abstract
With the Copenhagen discussions recently taken place, it is fair to say that the acknowledgement of global warming as a potential threat to our planet has never been greater. Despite the lack of all-embracing, world-wide consensus, the trend is nevertheless going toward a situation with strengthened control and regulatory frameworks in order to reduce greenhouse gas emissions. Recently, the G8 countries signed a treaty to reduce average global temperature by two degrees centigrade until the year 2050. However, this calls for a multilateral commitment at all levels of society — from the beginning of the supply chain starting with raw materials extractors — not ending at the final consumer, but also considering waste and disposal after consumption. Virtually all industries are affected, especially big emitters like the automotive industry.
Martin Lockström, Thomas Callarman, Liu Lei

10. The Role of Local Government in Software and ITES Offshoring in Dalian, China

Abstract
While China’s fast growth has been fed by rapid industrialization, India’s recent growth has been led by the service sector. Software and information technology enabled services (ITES) has been one of the critical service sectors that contributed to it most. Now China is also accelerating the development and export of software and ITES in order to realize strategic adjustment of its industrial structure and take advantage of its abundant human resources.
Hiromi Hinata

11. The Role of Standards in Technology-Driven Commodity Chains: The Information and Communication Technology Services Industry in Dalian, China, and Bangalore, India

Abstract
In July 2007, IDC (International Data Corporation), a consulting firm, developed a Global Delivery Index (GDI) to compare 35 cities in 18 countries in the Asia Pacific region as potential offshore delivery centers for information and communication technology (ICT) services. The comparison was based on 30 criteria — including cost of labor, cost of rent, language skills and turnover rate (Table 11.1). The Indian cities Bangalore, New Delhi and Mumbai were ranked first, third, and fourth while the Chinese cities Dalian, Beijing and Shanghai, were ranked fifth, sixth and seventh. IDC predicted that, by 2011, Chinese cities like Dalian would outstrip their Indian counterparts to become the most preferred global delivery locations in the world.
Balaji Parthasarathy, Bharath M. Palavalli

Backmatter

Additional information

Premium Partner

    Image Credits