A Comparative Study of India and China from the Perspectives of John MaynardKeynes and Piero Sraffa
DOI:
https://doi.org/10.69996/ijari.2024015Keywords:
Global Value Chain, Foreign Direct Investment, Market Flexibility, KeynesianAbstract
This study integrates Sraffian and Keynesian perspectives to analyze the manufacturing sector growth in India and China, focusing on production capabilities, technological advancements, and demand-side factors. It employs a mixed-methods approach, combining quantitative data analysis and qualitative case studies, to understand the factors driving each country's manufacturing success and to identify policy interventions for enhancing their roles in the global value chain (GVC). China's manufacturing dominance is attributed to strategic state-led industrial policies, significant infrastructure investments, and production efficiencies, exemplified by the "Made in China 2025" initiative and extensive foreign direct investment (FDI). Conversely, India's manufacturing sector shows potential for rapid growth with effective implementation of Keynesian demand-side policies and infrastructure improvements, supported by initiatives like "Make in India." Both countries can benefit from integrating Sraffian and Keynesian insights in policy-making, with China focusing on technological upgrades and domestic demand stimulation, and India targeting fiscal policies and regulatory reforms to enhance manufacturing capabilities and labor market flexibility. The study concludes with policy recommendations aimed at fostering sustainable manufacturing growth, enhancing global competitiveness, and achieving balanced economic development in This study integrates Sraffian and Keynesian perspectives to analyze the manufacturing sector growth in India and China, focusing on production capabilities, technological advancements, and demand-side factors. It employs a mixed-methods approach, combining quantitative data analysis and qualitative case studies, to understand the factors driving each country's manufacturing success and to identify policy interventions for enhancing their roles in the global value chain (GVC). China's manufacturing dominance is attributed to strategic state-led industrial policies, significant infrastructure investments, and production efficiencies, exemplified by the "Made in China 2025" initiative and extensive foreign direct investment (FDI). Conversely, India's manufacturing sector shows potential for rapid growth by effectively implementing Keynesian demand-side policies and infrastructure improvements, supported by initiatives like "Make in India." Both countries can benefit from integrating Sraffian and Keynesian insights in policymaking. China focuses on technological upgrades and domestic demand stimulation, and India targets fiscal policies and regulatory reforms to enhance manufacturing capabilities and labor market flexibility. The study concludes with policy recommendations to foster sustainable manufacturing growth, enhance global competitiveness, and achieve balanced economic development in India and China.both India and China.
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