Indian Council for Research on International Economic Relations

Seminar Details

16 Nov 2006

“The Changing Competitiveness Landscape among Emerging Economies: The Role of China and India”
by Professor Bart Van Ark
Thursday November 16, 2006
ICRIER organized a lecture by Professor Bart Van Ark, University of Groningen (The Netherlands) entitled “The Changing Competitiveness Landscape among Emerging Economies: The Role of China and India.” He pointed out that the contribution of productivity growth in GDP in India and China was higher than in the advanced countries. However China was ahead of India in productivity growth as opposed to employment growth in enhancing GDP levels. Dr. Ark also discussed the “Global Competitiveness Index” of the World Economic Forum, ranking countries on a scale of zero to one hundred and twenty, with zero being the most competitive country. He found a strong if imperfect relationship between labour productivity levels and the global competitiveness index of most emerging economies with the exception of India and China. An important observation in this regard was that India was ahead of China in terms of competitiveness, despite its lower productivity. But he said that large variations in the underlying indicators of competitiveness made productivity a better basis for comparison. He also said that the total factor productivity in China was slowing down primarily due to too much investment relative to GDP. While in India role of investments has increased only slightly and total factor productivity has remained practically unchanged.


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