Comparative Study on Industrial Development Process in China and India
Moriki OHARA and Koichiro KIMURA (ed)
Edited by Moriki Ohara, M. Vijayabaskar, and Hong Lin Industrial Dynamics in China and India: Firms, Clusters, and Different Growth Paths
Palgrave Macmillan IDE-JETRO Series, September 2011
Actually, China's economic performance dominated India in the incentive of local economies, but it is accompanied the problems such as the segmentation of financial market and the rent seeking action of local governments in the factor market. During Chinese reform era, the integration of market, especially factor market had not developed enough. Under such regionally segmented financial market, local government had been increasing their revenue, through the bargaining to the central government about revenue, or some rent-seeking action by intervening into the market.