IDEAS home Printed from https://ideas.repec.org/a/spr/soinre/v116y2014i2p639-646.html
   My bibliography  Save this article

Comparison of GDP Per Capita Data in Penn World Table and World Development Indicators

Author

Listed:
  • Rati Ram
  • Secil Ural

Abstract

This paper compares data on GDP per capita, which is used in almost every cross-country study, from two different sources which are used by numerous researchers and other users throughout the world. The methodology consists of taking GDP per capita in international dollars for the ICP benchmark year 2005 for each country from World Development Indicators 2012 CD-ROM (WDI) and Penn World Table 7.1 (PWT), which are the current (2012) versions of these well-known sources. A similar exercise is undertaken for World Development Indicators 2011 CD-ROM and Penn World Table 7.0, which are the last versions of the data. The WDI and PWT data are also compared with the benchmark estimates from the last International Comparison Program (ICP). Huge differences are found between the two sources for numerous countries in both the current and the last versions. The number of countries for which WDI and the ICP benchmark numbers show huge differences is small, but there are many countries for which PWT and the ICP benchmark numbers show large differences. The study seems important for judging how data on this crucial variable from two most widely used sources agree or differ. The reported huge differences suggest that the users may exercise caution in drawing strong conclusions from information derived from either source, and may consider doing some sensitivity checks based on data from the other source. A simple illustration is provided to indicate how use of data from each source might affect the results. Copyright Springer Science+Business Media Dordrecht 2014

Suggested Citation

  • Rati Ram & Secil Ural, 2014. "Comparison of GDP Per Capita Data in Penn World Table and World Development Indicators," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 116(2), pages 639-646, April.
    • Handle: RePEc:spr:soinre:v:116:y:2014:i:2:p:639-646
    DOI: 10.1007/s11205-013-0284-0
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11205-013-0284-0
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11205-013-0284-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Rati Ram, 2009. "International income distribution: comparing new ICP and the existing data," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 36(6), pages 652-658, May.
    2. Rozanski, Jerzy & Yeats, Alexander, 1994. "On the (in)accuracy of economic observations: An assessment of trends in the reliability of international trade statistics," Journal of Development Economics, Elsevier, vol. 44(1), pages 103-130, June.
    3. World Bank, 2011. "World Development Indicators 2011," World Bank Publications - Books, The World Bank Group, number 2315, December.
    4. Frederick Solt, 2009. "Standardizing the World Income Inequality Database," Social Science Quarterly, Southwestern Social Science Association, vol. 90(2), pages 231-242, June.
    5. Frederick Solt, 2009. "Standardizing the World Income Inequality Database," LIS Working papers 496, LIS Cross-National Data Center in Luxembourg.
    6. World Bank, 2012. "World Development Indicators 2012," World Bank Publications - Books, The World Bank Group, number 6014, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bennett, Daniel L. & Faria, Hugo J. & Gwartney, James D. & Morales, Daniel R., 2017. "Economic Institutions and Comparative Economic Development: A Post-Colonial Perspective," World Development, Elsevier, vol. 96(C), pages 503-519.
    2. Yin†Wong Cheung & Menzie Chinn & Xin Nong, 2017. "Estimating currency misalignment using the Penn effect: It is not as simple as it looks," International Finance, Wiley Blackwell, vol. 20(3), pages 222-242, December.
    3. Mo, Bin & Chen, Cuiqiong & Nie, He & Jiang, Yonghong, 2019. "Visiting effects of crude oil price on economic growth in BRICS countries: Fresh evidence from wavelet-based quantile-on-quantile tests," Energy, Elsevier, vol. 178(C), pages 234-251.
    4. Tamanna Adhikari & Karl Whelan, 2019. "Do Business-Friendly Reforms Boost GDP?," Working Papers 201930, School of Economics, University College Dublin.
    5. Rati Ram, 2016. "PPP GDP Per Capita for Countries of the World: A Comparison of the New ICP Results with World Bank Data," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(3), pages 1057-1066, July.
    6. Muinelo-Gallo, Leonel, 2022. "Business cycles and redistribution: The role of government quality," Economic Systems, Elsevier, vol. 46(4).
    7. Daniel L. Bennett & Hugo J. Faria & James D. Gwartney & Daniel R. Morales, 2016. "Evaluating Alternative Measures of Institutional Protection of Private Property and Their Relative Ability to Predict Economic Development," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 31(Summer 20), pages 57-78.
    8. Adhikari, Tamanna & Whelan, Karl, 2023. "Did raising doing business scores boost GDP?," Journal of Comparative Economics, Elsevier, vol. 51(3), pages 1011-1030.
    9. Shaomeng Jia & Claudia R. Williamson, 2019. "Aid, Policies, And Growth: Why So Much Confusion?," Contemporary Economic Policy, Western Economic Association International, vol. 37(4), pages 577-599, October.
    10. Erik E. Lehmann & Matthias Menter, 2016. "University–industry collaboration and regional wealth," The Journal of Technology Transfer, Springer, vol. 41(6), pages 1284-1307, December.
    11. Daniel L. Bennett & Hugo J. Faria & James D. Gwartney & Hugo M. Montesinos-Yufa & Daniel R. Morales & Carlos E. Navarro, 2017. "Evidence on economic versus political institutions as determinants of development," Working Papers 2017-04, University of Miami, Department of Economics.
    12. Kacprzyk, Andrzej & Kuchta, Zbigniew, 2020. "Shining a new light on the environmental Kuznets curve for CO2 emissions," Energy Economics, Elsevier, vol. 87(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ioana Pop & Erik Ingen & Wim Oorschot, 2013. "Inequality, Wealth and Health: Is Decreasing Income Inequality the Key to Create Healthier Societies?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 113(3), pages 1025-1043, September.
    2. Dahlum, Sirianne & Knutsen, Carl Henrik, 2017. "Do Democracies Provide Better Education? Revisiting the Democracy–Human Capital Link," World Development, Elsevier, vol. 94(C), pages 186-199.
    3. Christian Bjørnskov & Jacob Mchangama, 2019. "Do Social Rights Affect Social Outcomes?," American Journal of Political Science, John Wiley & Sons, vol. 63(2), pages 452-466, April.
    4. Adam, Antonis & Kammas, Pantelis & Lapatinas, Athanasios, 2015. "Income inequality and the tax structure: Evidence from developed and developing countries," Journal of Comparative Economics, Elsevier, vol. 43(1), pages 138-154.
    5. Fuchs, Andreas & Dreher, Axel & Nunnenkamp, Peter, 2014. "Determinants of Donor Generosity: A Survey of the Aid Budget Literature," World Development, Elsevier, vol. 56(C), pages 172-199.
    6. Armin von Schiller, 2017. "Party system institutionalization and reliance on personal income tax: Exploring the relationship using new data," WIDER Working Paper Series wp-2017-32, World Institute for Development Economic Research (UNU-WIDER).
    7. Oto-Peralías, Daniel & Romero-Ávila, Diego & Usabiaga, Carlos, 2013. "Does fiscal decentralization mitigate the adverse effects of corruption on public deficits?," European Journal of Political Economy, Elsevier, vol. 32(C), pages 205-231.
    8. Herzer, Dierk & Nunnenkamp, Peter, 2012. "The effect of foreign aid on income inequality: Evidence from panel cointegration," Structural Change and Economic Dynamics, Elsevier, vol. 23(3), pages 245-255.
    9. Eric Kemp-Benedict, 2013. "Inequality and Trust: Testing a Mediating Relationship for Environmental Sustainability," Sustainability, MDPI, vol. 5(2), pages 1-10, February.
    10. Kalenborn, Christine & Lessmann, Christian, 2014. "Regional Income Inequality lowers Life Satisfaction: Evidence from OECD Countries," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100561, Verein für Socialpolitik / German Economic Association.
    11. Jaejoon Woo & Elva Bova & Tidiane Kinda & Y. Sophia Zhang, 2017. "Distributional Consequences of Fiscal Adjustments: What Do the Data Say?," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 65(2), pages 273-307, June.
    12. Jung-In Jo & Hyun Jin Choi, 2019. "Enigmas of grievances about inequality: Effects of attitudes toward inequality and government redistribution on protest participation," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 22(4), pages 348-368, December.
    13. Takuma Kunieda & Masashi Takahashi, 2022. "Inequality and institutional quality in a growth model," Evolutionary and Institutional Economics Review, Springer, vol. 19(1), pages 189-213, April.
    14. Dorsch, Michael T. & Maarek, Paul, 2020. "Economic downturns, inequality, and democratic improvements," European Journal of Political Economy, Elsevier, vol. 62(C).
    15. Dierk Herzer & Philipp Hühne & Peter Nunnenkamp, 2014. "FDI and Income Inequality—Evidence from Latin American Economies," Review of Development Economics, Wiley Blackwell, vol. 18(4), pages 778-793, November.
    16. Michael K Miller, 2013. "Electoral authoritarianism and democracy: A formal model of regime transitions," Journal of Theoretical Politics, , vol. 25(2), pages 153-181, April.
    17. Horst Feldmann, 2013. "Technological unemployment in industrial countries," Journal of Evolutionary Economics, Springer, vol. 23(5), pages 1099-1126, November.
    18. Flores Thomas Edward, 2014. "Vertical Inequality, Land Reform, and Insurgency in Colombia," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 20(1), pages 5-31, January.
    19. Matsubayashi, Tetsuya & Ueda, Michiko, 2011. "The effect of national suicide prevention programs on suicide rates in 21 OECD nations," Social Science & Medicine, Elsevier, vol. 73(9), pages 1395-1400.
    20. Shankar GHIMIRE & Debasri MUKHERJEE & Eskander ALVI, 2016. "Aid-for-Trade and Export Performance of Developing Countries," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 16(1), pages 23-34.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:soinre:v:116:y:2014:i:2:p:639-646. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.