Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/290503 
Year of Publication: 
2021
Citation: 
[Journal:] Naše gospodarstvo / Our Economy [ISSN:] 2385-8052 [Volume:] 67 [Issue:] 4 [Year:] 2021 [Pages:] 33-55
Publisher: 
Sciendo, Warsaw
Abstract: 
Emerging markets' political, economic, and social transition processes led to altered demographic trends and new macroeconomic dynamics in these economies. These changes triggered the growth of the middle class that became an essential factor of emerging markets' attractiveness for sales and production activities of foreign firms. The purpose of this article is to analyze the demographic and macroeconomic trends of China and India in the decades before the COVID-19 crisis, aimed at estimating their role in the growth of the middle class and the consequent attractiveness of these two important emerging markets for foreign firms. We formulate our research findings on the extensive theoretical foundations and empirical analysis of selected demographic and macroeconomic indicators related to the growth of the middle class. We established that India fell behind China considerably concerning demographic transition and macroeconomic dynamics in the observed periods. China enforced a radical demographic transition. The comparative analysis of macroeconomic dynamics showed a solid leadership of China in economic growth, international trade and investment openness, technological advancement, employment, the structure of the output, domestic investment, urbanization, and salaried workers. Consequently, we estimated the lower growth of the Indian middle class and its lower importance in foreign firms' decisions to enter the Indian market. The findings brought some implications for international managers at segmenting and selecting target foreign markets.
Subjects: 
emerging market
middle class
demographic transition
macroeconomic dynamics
international business
China
India
JEL: 
F23
F62
J11
N35
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

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