THE RISE OF CHINA AS AN INTERNATIONAL NATION

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TABLE OF CONTENT

1. Introduction 9

2. Literature review 9

2.1. Theorical framework for industrialization. 9

2.2. Theories on industrialization in China 13

2.3. Process of China’s industrialization 14

2.4. Rethinking about China’s path of industrialization 16

2.4.1. The reasons for the intervene of government in economic development 17

2.4.2. The role of government in the post development of China 17

2.5. Comparison of the level of industrialization between China and India 18

2.5.1. The phenomenal growth of China and India. 18

2.5.2. China’s achievement. 18

2.5.2.1. Overall economic growth 18

2.5.2.2. Growth in agriculture and productivity. 18

2.5.2.3. Poverty reduction 19

2.5.3. India’s achievement 19

2.5.3.1. Overall economic growth 19

2.5.3.2. Growth in agriculture and productivity 19

2.5.3.3. Poverty reduction 20

2.5.4. Difference, similarities and prospects of China and India. 20

2.5.5. Similarities between China and India. 20

2.5.6. Difference between India and China 21

2.6. Comparison of the level of industrialization between China and India 23

3. Some lessons drawn from experience in industrialization of China 25

4. Conclusion 26

5. Reference 26

1. Introduction

Chinese industry has been developing rapidly for 60 years, especially 30 years recently. China has change from a backward economy to one of the economic leader in the world. In the last 20 years of XX century, China reached highest growth rate in their history, and also the leader of the world, annual growth rate at 9.8% per year, in 2007 growth rate was 11.4%,GDP was 2,200USD and stood 4th in the world in 2007. Those achievements set up a channel of questions and stimulate economist and policy makers in all over the world to investigate and it is worth for the world to learn and apply in a creative way. It is the reason and purpose of the topic: The rise of China as an industrial nation.

2. Literature review

2.1. Theorical framework for industrialization.

According to Szirmai (2009), industrial development is considered the driver of changes in the structure of organization which has been key in the process of developing economy. Moreover, Szimai also stated that most of recent research suggested that the development of economy has required that there are the changes of activities from low to high productivity and industrial sector becomes the important factor of growth in the process of development. Regarding to modern economic development, all situations with high and rapid growth rate in economy have associated with industrialization, especially in the process of manufacturing and producing. Hence, as stated by Szirmai (2009), there exists the relationship between industrialization and economic development.

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