A Comparison of the Relative Advantages of China and India in International Construction

Abstract

China and India are two of the worlds largest countries, sharing between them some 40% of the worlds population. They are also two of the worlds fastest growing economies. However, while China and India shared similar rates of growth into the 1990s China has pulled away and sustained significantly higher growth rates over the last two decades. This disparity is especially reflected in the growth rates for the Chinese and Indian construction and construction services sectors. Thus, the ability of China to consistently outperform India in construction is of interest. Theories on the determinants of national competitiveness suggest sources of sustained advantage. A list of factors was compiled and developed as a survey. Eighteen experts familiar with the construction industry in China and India responded to the survey. Overall, China and India are shown to have their own unique advantages, yet the number and strength of Chinese advantages is greater. While a survey instrument of this nature has its limitations, the findings offer practitioners and policy makers insights into the sources of national competitive advantage in construction for China and India.