The blank______ adjustment helps to minimize misleading international comparisons of gdp.

The blank______ adjustment helps to minimize misleading international comparisons of gdp.

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The blank______ adjustment helps to minimize misleading international comparisons of gdp.

The blank______ adjustment helps to minimize misleading international comparisons of gdp.

Abstract

We use Chinese imports, measured as reported exports of trading partners, as a benchmark to gauge the accuracy of alternative Chinese indicators (including GDP) of fluctuations in economic activity. Externally-reported imports are likely to be relatively well-measured and free from domestic manipulation. Using principal components, we derive activity indices from a wide range of indicators. We choose a preferred index of eight non-GDP indicators based on their fit to Chinese imports, which we call the China Cyclical Activity Tracker (or C-CAT). We find that Chinese statistics have broadly become more reliable in measuring cyclical fluctuations over time. However, measured GDP has been excessively smooth since 2013, and adds little information relative to combinations of other indicators.

Keywords

China

GDP

Principal components

Structural break

Forecasting

JEL Classification numbers

C53

C82

E20

F17

Cited by (0)

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