There was news some time ago about downward revisions on the size of the economies of India and China. Thanks to Alan Heston (of Heston and Summers Index fame), we can better understand this debate firsthand. He has written about this in EPW and a few other places, but on his personal webpage you can find the background paper.
The 2005 round of the World Bank's International Comparison Programme seems to have had more intellectual and data resources then ever before.
In short, there are five factors which are provided in explanation for the revision.
1 - The prior view of the PPP global economy, the WDI and PWT.
2 - The treatment of government administrative services and other perceptions of non-priced output.
3 - The linking of regional comparisons into the world economy.
4 - Treatment of the net foreign balance.
5 - Nature of urban price collection in China.
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