Volume 30, Issue 2, 2021
DOI: 10.24205/03276716.2020.4083
Comparison of China and India's Planned Economy Development Policies in 1950s-1970s: Institutional logic based on the performance difference of economic reform between China and India
Abstract
As two typical developing economies in the Asia-Pacific region, China and India have made remarkable achievements in their respective economic reforms, and also revealed their differences in reform performance in the development process. The existing research results on the performance differences between China and India's economic reform mainly focus on the qualitative analysis of the development situation of the two countries since the economic reform, but lack of explanatory power in the historical logical connection and influence mechanism of the performance differences between China and India's economic reform. From the historical perspective, this paper compares and analyzes the differences between the development policies of the two countries in the 1950s and 1970s, which are influenced by the mainstream economic growth theory, and discusses the logical relevance between the planned economic development policies and institutional models and the market economic reform between China and India. In order to study the great difference and heterogeneity of the development performance of the two typical developing countries (China and India), this paper provides the reasons for the policy, organization and other factors leading to this phenomenon, and provides a different research perspective for the development of development economics. The research shows that the two countries' de facto institutional structure and development policies in the 1950s and 1970s are specious, which has a main logical connection with the later two countries' entering into different economic development models. That is to say, the performance difference of current development policies is based on the historical development policies and achievements of the past government, market, economic system structure and other factors.
Keywords
China and India; Planned economy; Development policy; Economic growth; Institutional Logic