Title: Who shrunk China?
Description: "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"--National Bureau of Economic Research web site.