Why Does India have Twice the Productivity of Capital Compared to China - Sir James Mirrlees

The video discusses the economic growth rates of India and China, highlighting the differences in infrastructure and capital efficiency. India, despite having poorer infrastructure, uses its capital more efficiently than China, which produces more capital but does not utilize it fully. The productivity of capital in China is half that of India, suggesting that high growth rates can be achieved with lower investment. This analysis provides insights into the relative capabilities of the two countries.

What are the observed differences in infrastructure between India and China as mentioned in the text?

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In what ways does the text suggest that India uses capital more efficiently than China?

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How does the productivity of capital in China compare to that in India?

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What implications does the difference in capital productivity have on the growth rates of India and China?

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What conclusions can be drawn about the relationship between investment levels and growth rates based on the text?

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