Who Shrunk China? Puzzles in the Measurement of Real GDP

J. Peter Neary, Robert Feenstra, Hong Ma and D.S. Prasada Rao ()

No 8592, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: The 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.

Keywords: Eks; Geary-khamis and gaia indexes; Gerschenkron effect; International comparisons of real income and gdp; Measurement economics; Substitution bias (search for similar items in EconPapers)
JEL-codes: C43 F10 O53 (search for similar items in EconPapers)
Date: 2011-10
New Economics Papers: this item is included in nep-cba
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Who Shrunk China? Puzzles in the Measurement of Real GDP (2013)
Working Paper: Who Shrunk China? Puzzles in the Measurement of Real GDP (2012)
Working Paper: Who Shrunk China? Puzzles in the Measurement of Real GDP (2011)
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