The PRC and the USA, who is winning: a comparison of the main parameters of economic development

Occupation: Head of the Department
Affiliation:
Institute of Asian and African Studies, Lomonosov Moscow State University
“Aziya i Afrika segodnya” journal
Address: Russian Federation, Moscow

Journal name

Asia and Africa Today

Edition

Issue 8

Pages

5-14

Abstract

The paper, based on a series of models and computations, analyzes main features of international competitiveness of the PRC and USA. It is shown that during the last four decades China, having substantially increased its level of physical and human capital formation, participation in international division of labor, succeeded not only to surpass the USA by the volume of GDP in PPP, shares in the growth of world GDP, exports and investments, but was rapidly catching up with it by level of per capita GDP, total factor productivity, human development index. Having at first profited by its natural comparative advantage (gigantic masses of cheap, hard-working labor force), China has stepped more or less firmly on the path of innovative development. It nearly caught up with the USA by the absolute level of R&D expenditures and has achieved great progress in the publication of scientific articles and issuance of patents with relatively high impact-factor, in the use of robots and supercomputers.

However, first, the USA as well as the other advanced economies, which are grappling now with many structural disproportions, possesses a huge science and innovation potential, and average growth rates of their total factor productivity are, perhaps, understated by 1/5 to 1/3. Second, China which during the last decade has been suffering from over accumulation of capital, decline in the efficiency of investments, substantial increase in total debt, enlarged ecological price, significant rise of inequality in incomes and wealth, should urgently undertake a new series of institutional pro-market reforms, if it wants to carry on fast catching up development, improving the standards of living of its population, upgrading its level of international competitiveness.

Keywords

The PRС and USA rivalry, accumulation of capital, innovations, institutions, productivity, competitiveness, total debt, inequality, index of development

Publication date

10.08.2019

Number of characters

21064

Cite

GOST	Meliantsev V. The PRC and the USA, who is winning: a comparison of the main parameters of economic development // Asia and Africa Today – 2019. – Issue 8 C. 5-14 [Electronic resource]. URL: https://asaf-today.ru/S032150750005767-5-1 (circulation date: 20.04.2024). DOI: 10.31857/S032150750005767-5
MLA	Meliantsev, Vitalii A "The PRC and the USA, who is winning: a comparison of the main parameters of economic development." Asia and Africa Today 8 (2019):5-14. DOI: 10.31857/S032150750005767-5
APA	Meliantsev V. (2019). The PRC and the USA, who is winning: a comparison of the main parameters of economic development. Asia and Africa Today (8), pp.5-14 DOI: 10.31857/S032150750005767-5

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