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What Can Be Learned About the Economies of China and India from Purchasing Power Comparisons?

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  • Alan Heston

    (Indian Council for Research on International Economic Relations)

Abstract

Comparisons of India and China have been made for over 50 years. This paper focuses on purchasing power estimates in China and India in the 2005 round of the UN International Comparison Programme (ICP) that was coordinated by the World Bank, the Regional Banks and Economic Commissions. The 2005 ICP round provides estimates of purchasing power parities (PPPs) of currencies and real product per capita for 146 countries, and the results for China and India are discussed in the context of the size of these economies. It also provides insights into the prospects of future economic growth in China and India as also policy recommendations for China and the likely scenarios in the future.

Suggested Citation

  • Alan Heston, 2008. "What Can Be Learned About the Economies of China and India from Purchasing Power Comparisons?," Macroeconomics Working Papers 22166, East Asian Bureau of Economic Research.
    • Handle: RePEc:eab:macroe:22166
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    References listed on IDEAS

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    Cited by:

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    2. Przemyslaw Kowalski, 2008. "China and India - A Tale of Two Trade Integration Approaches," Trade Working Papers 22170, East Asian Bureau of Economic Research.
    3. Deng, Kent & O’Brien, Patrick Karl, 2016. "China’s GDP per capita from the Han Dynasty to communist times," Economic History Working Papers 64857, London School of Economics and Political Science, Department of Economic History.
    4. Yingfeng Xu & Xiaoyi Yan, 2009. "The Role of the Real Exchange Rate Adjustment in Expanding Service Employment in China," Working Papers 2009-11, University of Alberta, Department of Economics.
    5. Kent Deng & Patrick Karl O’Brien, 2014. "Creative Destruction: Chinese GDP per capita from the Han Dynasty to Modern Times," Working Papers 0063, European Historical Economics Society (EHES).

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    JEL classification:

    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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