|
| China | India |
|
| Macrolevel |
|
| Politics | + relative political stability due to improving living standards [47] | − variety of religions, ethnicities, and languages; rigid caste system [48] |
| − potential of social disruptions given the Communist Party's monopoly of power [29] | − tensions with Pakistan [49] |
| − neglection of human rights [37] | − frequent changes of government and minority governments [50] |
|
| Demographics | + population growth allows for extensive growth [31] | + population growth allows for extensive growth [31] |
| − population growth likely to have negative impact on p.c. GDP [51] | − population growth likely to have negative impact on p.c. GDP [51] |
| − aging population challenges social security system [52] | + young people allow for intensive growth if education is supported [53] |
|
| Labor market | unemployment rate of 4.2% in 2008 (World Bank) | unemployment rate of 5.0% in 2004 (World Bank) |
| − pressure on labor markets is rising [54] | − employment in public sector has fallen and was not backed by increases in private economy [34] |
| − quota regulations for scheduled castes have led to demoralization and unsatisfactory performance in public sector [48, 55] |
|
| Fiscal and monetary policy | + relatively low debt and deficit [56] | − expansive fiscal policy [57] |
| − fixed exchange rate regime, requiring capital controls [58] | + restrictive monetary policy [57] |
|
| External relations | + huge FDI inflows | |
| + trade balance surplus | − trade balance deficit |
|
| Meso- and microlevel |
|
| Industrial structure | + China as the global workbench, including high share of high-technology exports (29% in 2008; World Bank) | − high dependence on services sector [41] |
|
| Business environment | Doing business ranking 89 of 183 in 2010 (World Bank) | Doing business ranking 133 of 183 in 2010 (World Bank) |
|
| Entrepreneurship | + large share of high-growth expectation early-stage entrepreneurship (Global Entrepreneurship Monitor) | − small share of high-growth expectation early-stage entrepreneurship (Global Entrepreneurship Monitor) |
|
| Education | + high priority on education, consistent programs [29] | − still, securing primary education is main task [29] |
|
