Who Shrunk China? Puzzles in the Measurement of Real GDP

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

No 17729, NBER Working Papers from National Bureau of Economic Research, Inc

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.

JEL-codes: E01 (search for similar items in EconPapers)
Date: 2012-01
New Economics Papers: this item is included in nep-cba, nep-dev and nep-mac
Note: ITI
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Citations: View citations in EconPapers (18)

Published as 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.

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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 (2011)
Working Paper: Who Shrunk China? Puzzles in the Measurement of Real GDP (2011)
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