Growth, Reforms and Inequality: Comparing India and China

in Amiya K. Bagchi and Anthony P. D’Costa (eds), Transformation and Development: the political economy of transition in India and China (New Delhi: Oxford University Press: 2012), 173-198

Posted: 10 Jul 2016

See all articles by Lopamudra Banerjee

Lopamudra Banerjee

New School for Social Research - Department of Economics

Ashwini Deshpande

Delhi School of Economics - Department of Economics

Yan Ming

Institute of Sociology, Chinese Academy of Social Sciences

Sanjay Ruparelia

New School for Social Research - Department of Politics

Vamsicharan Vakulabharanam

University of Hyderabad - Department of Economics

Wei Zhong

Institute of Economics, Chinese Academy of Social Sciences

Date Written: 2012

Abstract

This paper investigates the striking phenomenon of prosperity and inequality in India and China since the late 1980s. In particular, it undertakes a comparative analysis of changes in the pattern and distribution of income and expenditure as captured by the Gini coefficient, as well as its social, spatial and temporal dimensions. For India, we find that increasing urban-rural disparity and rising urban inequality are the most important aspects of uneven economic growth. In addition, the data shows growing inter-state inequality, and reveals that growth and inequality have become intertwined. For China, our analysis reveals increasing within-group inequality in rural and urban sectors; a decline in between-group inequality; and the growth of acute urban-rural disparities. These findings confirm the need for both countries to devise urgent measures that can tackle these rising economic inequalities – particularly the urban-rural divide – if they wish to maintain greater national prosperity without creating social upheaval.

Suggested Citation

Banerjee, Lopamudra and Deshpande, Ashwini and Ming, Yan and Ruparelia, Sanjay and Vakulabharanam, Vamsicharan and Zhong, Wei, Growth, Reforms and Inequality: Comparing India and China (2012). in Amiya K. Bagchi and Anthony P. D’Costa (eds), Transformation and Development: the political economy of transition in India and China (New Delhi: Oxford University Press: 2012), 173-198. Available at SSRN: https://ssrn.com/abstract=2807229

Lopamudra Banerjee

New School for Social Research - Department of Economics ( email )

Room 1116
6 East 16th Street
New York, NY 10003
United States

Ashwini Deshpande

Delhi School of Economics - Department of Economics ( email )

Delhi-110007
India

Yan Ming

Institute of Sociology, Chinese Academy of Social Sciences ( email )

China

Sanjay Ruparelia (Contact Author)

New School for Social Research - Department of Politics ( email )

United States

Vamsicharan Vakulabharanam

University of Hyderabad - Department of Economics ( email )

Gachibowli
Hyderabad, Andhra Pradesh 500046
India

Wei Zhong

Institute of Economics, Chinese Academy of Social Sciences

2 Yuetan Beixiaojie
Beijing, Beijing
China

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