Supporting the Free and Competitive Market in China and India: Differences and Evolution Over Time

Posted: 6 Mar 2010  

Matteo Migheli

University of Torino - Department of Economics and Statistics; University of Torino - CeRP

Abstract

This paper analyzes the support to market competition by Indian and Chinese citizens. In particular, I study the individual preferences with respect to some characteristics of a free and competitive market. The paper aims at establishing whether preferences in these countries are different and their evolution over the time. This is an important issue, as the economic literature shows that people’s preferences and policies tend to go hand in hand. This means that the analysis of today’s preferences and their evolution over time can be useful to forecast tomorrow’s policies. The main findings of this paper are that Indians and Chinese are different in supporting competition. The Chinese express preferences that are more in line with a free and competitive market than Indians do. The detected time path reveals that this support has been decreasing over time during the last two decades. The two populations appear to be in favour of a capitalistic, but strictly regulated market. This can mean that the future economic policies of these Asian giants will tend to this direction. Apparently there are no risks for some form of capitalism, but it is likely the two countries will not adopt completely free and competitive market institutions.

Keywords: Competition, Market economy, Individual support, India, China, Economic policies

JEL Classification: D01, D41, R58

Suggested Citation

Migheli, Matteo, Supporting the Free and Competitive Market in China and India: Differences and Evolution Over Time. Economic Systems, Vol. 34, No. 1, 2010. Available at SSRN: https://ssrn.com/abstract=1564799

Matteo Migheli (Contact Author)

University of Torino - Department of Economics and Statistics ( email )

Lungo Dora Siena, 100
Torino, 10153
Italy

University of Torino - CeRP ( email )

via Real Collegio 30
Moncalieri, Torino 10024
Italy

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