| This dissertation consists of six chapters. The first chapter is a introduction about the meaning of the topic, analytical methods and constructional arrangement.The second chapter is a survey about trade and growth, as well as that in China and India. Generally Speaking, it is the analysis about gains from trade in each country according to classical trade theory and neoclassical trade theory that is the typical static theory essentially. On the basis of new trade theory and new growth theory, trade promotes national economic growth mainly by extension of international division of labor, accumulation of human capital owing to comparative advantage and multinational spillovers of knowledge and all these are dynamic revenue from growth thanks to trade.Although the conclusion of theoretical research is quite clear and most of the positive researches support that trade is favorable to economic growth, a proportion of positive researches draw into a opposite conclusion because concrete situations diversify in different countries and sometimes trade cannot bring about profit. The divergence is more remarkable when it comes to India and China.Chapter 3 is research concerning trade regime as well as evolution and actuality of trade policy both in China and India. History analysis to China and India illustrate that both countries have high-closed trade regime, which impeded their economic development, so afterward both countries had to reform their trade regime and trade policy. Reformation turns the trade regime from closed to open, which brought about more achievement in economy in the two countries. To some degree, the comparison about trade regime evolution and its promotion to economy between both countries reveals that developing countries would inevitably turn economy form inward to outward. Generally speaking, by comparing the actuality of trade regime in both countries, trade regime in China is more open than that in India, but India is more open than china with a quicker step in some respects, such as service trade.Chapter 4 is a comparative study that focuses on different way to transfer technology through trade and the consequences it brings between India and China.Owing to the participation of vertical division of labor of international product, China acquires comparative advantage form dynamic international demand as well as new products that are characterized by notable high-tech while India maintains the traditional pattern of specialization. Regional environment also plays a significant role in the open process. To a large degree, China have incorporated into the international division of labor in the entire manufacture process in Asia while India has limited participation in international division of labor in the manufacture process and a small amount of high-tech product import. The conclusion of this chapter shows that the relation between open and growth is not simply linear, on the contrary, trade partner, product structure in trade and the proportion of high-tech product are more substantial factor to growth.Chapter 5 is a positive test about improvement of trade and TFP in both countries. It indicates that trade really promotes the growth of TFP both in China and India, but the mechanism of trade promotes the growth of TFP is very different in both countries. In India, trade liberalization of mediate product department deepens the domestic division of labor while in China, there is a conspicuous technology spillover effects from trade in export sections towards non-export sections. To some degree, this chapter is a empirical test on mechanism of trade to promote growth, which has been mentioned in chapter 4.Chapter 6 is conclusion and revelation. This dissertation comparatively analyzes the effects of openness to economic growth both in China and India separately. The research illustrates that the difference lying in the geographic location, economic integration with other countries and the direction and degree of participation in international division of labor result in the dissimilarity on level of technology introduction and import-and-export product structure between the two countries. As a result, they exert different effect in economic growth. This dissertation confirms positive correlation between trade openness and per capita income. The experiences of China and India have important enlightening meaning to other developing countries. As far as the relationship between trade and growth concerned, there are still many questions unsolved in this dissertation, for example, most economists... |
