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ECO362H1 (2)

bosworth and collins reading

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Michael Denny

Accounting for Growth Comparing China and India by Bosworth and Collinsy China and India have both shown fast growth over the later part of the past century y China grew faster because of its quickness in removing trade barriers Growth Accounting overview y Land used in production function but ignored in paper since it had minimal affects added to capital From 197819932003 y Over full period china and india were nearly identical in growth of labour force y After 1993 both countries experienced labour productivity growth y Chinas fast growth has been matched before but never as long as china over 25 years y India has low proportion of investment to capital and thus is unlikely able to continue to support high growth y India has been relatively very slow at increasing the education rate Also primary education has shown decreasing returns and higher education increasing perhaps due to a growing lack of the highly educated y After the 70s Chinese enrolled in more schoolin
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