Who Shrunk China? Puzzles in the Measurement of Real  GDP | Zendy

Feenstra Robert C. | Zendy; Ma Hong | Zendy; Peter Neary J. | Zendy; Prasada Rao D.S. | Zendy

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Who Shrunk China? Puzzles in the Measurement of Real GDP

Author(s) -

Feenstra Robert C.,

Ma Hong,

Peter Neary J.,

Prasada Rao D.S.

Publication year - 2013

Publication title -

the economic journal

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 4.683

H-Index - 160

eISSN - 1468-0297

pISSN - 0013-0133

DOI - 10.1111/ecoj.12021

Subject(s) - economics , real gross domestic product , per capita , consumption (sociology) , china , econometrics , gross domestic product , measure (data warehouse) , substitution (logic) , macroeconomics , monetary economics , geography , population , social science , demography , archaeology , database , sociology , computer science , programming language

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 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 Chinese real per capita GDP was 30% higher in 2005 than the World Bank estimates. Our empirical procedures have implications more broadly for international comparisons of living standards and real GDP .

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