China and India are the two most populous countries in the world and have also grown very rapidly in recent
Employment in China and India both grew at 2 percent per year over the period, so the remaining differences must be attributed to capital deepening and technological progress. Bosworth and Collins in turn broke capital deepening into two parts: increases in physical capital (buildings, machines, and equipment) and increases in human capital (the knowledge of workers, as measured by their educational attainment). Their analysis revealed that China s more rapid growth was primarily caused by more rapid accumulation of physical capital and more rapid technological progress. The contributions from human capital for each country were similar. Why did China grow faster than India over this 26-year period? Simply put, China invested much more than India in physical capital and was able to increase its technological progress at a more rapid rate.
This problem has been solved!
Do you need an answer to a question different from the above? Ask your question!
Step by Step Answer:
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Question Posted: December 04, 2012 00:33:38