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 University of Oxford, Department of Economics in its series Economics Series Working Papers with number 566.
Date of creation: 01 Sep 2011
Date of revision:
EKS; Geary-Khamis and GAIA indexes; Gerschrenkron effect; International comparisons of real income and GDP; Measurement economics; Substitution bias;
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.
- 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.
- 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.
- F10 - International Economics - - Trade - - - General
- C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
- O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-10-09 (All new papers)
- NEP-CBA-2011-10-09 (Central Banking)
- NEP-DEV-2011-10-09 (Development)
- NEP-TRA-2011-10-09 (Transition Economics)
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