Who Shrunk China? Puzzles in the Measurement of Real GDP
AbstractThe latest World Bank estimates of real GDP per capita for China are significantly lower than previous ones. We review possible sources of this puzzle and conclude that it reflects a combination of factors, including substitution bias in consumption, reliance on urban prices which we estimate are higher than rural ones, and the use of an expenditure-weighted rather than an output-weighted measure of GDP. Taking all these together, we estimate that real per-capita GDP in China was 50% higher relative to the U.S. in 2005 than the World Bank estimates.
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Bibliographic InfoArticle provided by Royal Economic Society in its journal The Economic Journal.
Volume (Year): 123 (2013)
Issue (Month): 12 (December)
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Other versions of this item:
- Peter Neary & Robert C. Feenstra, 2011. "Who Shrunk China?� Puzzles in the Measurement of Real GDP," Economics Series Working Papers 566, University of Oxford, Department of Economics.
- Robert C. Feenstra & Hong Ma & J. Peter Neary & D.S. Prasada Rao, 2012. "Who Shrunk China? Puzzles in the Measurement of Real GDP," NBER Working Papers 17729, National Bureau of Economic Research, Inc.
- Feenstra, Robert & Ma, Hong & Neary, J Peter & Rao, DS Prasada, 2011. "Who Shrunk China? Puzzles in the Measurement of Real GDP," CEPR Discussion Papers 8592, C.E.P.R. Discussion Papers.
- C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
- F10 - International Economics - - Trade - - - General
- O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
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