Understanding the Wealth of Nations, and Making Capitalism Work for Everyone
China has been said to be the World’s factory and cheap labor is said to be the reason why China attracts most of the manufacturing activities away from developed countries. But minimum wage in China’s manufacturing sector is between two to three times that of India.
Steven J. Davis, Kevin M. Murphy, and Robert H. Topel, three famous economics professors in the University of Chicago, publish a working paper on how war in Iraq may help save Iraqi lives.
Most investment banks have already released their forecast of GDP growth rates for India and China. Let’s see what they think about these two competitors’ prospects.
It always puzzled and shocked me that some Latin American and Eastern European countries have private credit to GDP ratios of merely some 30%. What can you do with so little credit?
There is this popular view that India is blessed by a sound and efficient financial system, while China will be troubled by the huge amount of non-performing loans. The reality is more nuanced.
In the first quarter of 2006, Chinese economy grew at 10.2%, which is the fastest in the past ten years. Anyone familiar with the political-business cycle in China will be surprised.
In the first half of 2006, China was growing at unprecedented pace, at 10.9%. Only Credit Suisse’s forecast was in line with the actual outcome.