China and India’s Economy as a Neoclassical Growth Model.
It should be noted that the standard one-sector neoclassical growth model cannot be used to explain the macroeconomic variables of India and China. The model, however, provides the theoretical framework that aids in examining how the two economies’ digress from the standard model and in this way point out the market structure, organizations, and other variables that may have led to this digress (Huisken 239). An important variable that may help us understand this deviation and explain the differences in the growth of the two economies is the investment interest rates. India may have high level of investments but ...
