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 InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 8592.
Date of creation: Oct 2011
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Other versions of this item:
- Robert C. Feenstra & Hong Ma & J. Peter Neary & D.S. Prasada Rao, 2013. "Who Shrunk China? Puzzles in the Measurement of Real GDP," Economic Journal, Royal Economic Society, vol. 123(12), pages 1100-1129, December.
- 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.
- 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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