What is the Real Size of China's Economy?

Author: 
Dianqing Xu
Christer Ljungwall
Description: 
CCER Working Paper No. E2007004
JEL codes: 
Organisation: 
Abstract: 
On December 20, 2005, China's National Bureau of Statistics adjusted China's nominal GDP by CNY 2.3 trillion. The bulk of this upward adjustment was attributed to improved coverage of value-added by services. The service industry now makes-up 40 percent of GDP. Based on previous studies and other observations, this paper point out that there is still significant under-reporting of the service industry and, hence China's GDP is likely underestimated. We find a plausible share of service industry in GDP to be in the range of at least 45 to 55 percent