A Conparative Study On Open Economy Of China And India

The paper mainly carried a comparative study on development of open economy in China and India, by concrete analysis from three ways, foreign trade (merchandise trade and trade in services), the international capital movement (foreign direct investment and foreign direct investment) and the international economic cooperation (international economy aid, international project contractor and international labor service cooperation). First, we use massive statistical data to make a detailed comparison to the China and India merchandise trade and the trade in service. Through the analysis of the concentration of trade index and competitiveness index, we find out the problems existed in the development of China international trade. Secondly, we carried on the comparison to the development of China and India international capital movement from two aspects, inflows and outflows of the foreign direct investment. We use a model to measure the impact of foreign direct investment inflows on the domestic economy development, and some indicators to compare the development of China's and India's foreign direct investment outflows. By these comparative analysis, we summarized the questions existed in the development of China's international capital movement. Last, we carried on the comparison to the China's and India's international economic cooperation, and analysed its relation with domestic economy development. Through the analysis, we pointed out the problems which existed in the development of international economic cooperation. Through analysis, we summarized the superiorities and inferiorities in China's open economy development, as well as the problems existed. With these, we hope that we could provide some beneficial information to the making of more appropriate open-door economic policies for relevant department.