Comparisons of People’s Standard of Living
This chapter introduces how per capita GDP is used to reflect people’s standard of living. Using the statistics of China, the authors show that different methods can yield different conclusions. Results from the PPP method show that China ranked 141st in 1990 and 82nd in 2013. China’s per capita GDP grew from $1007 in 1990 to $11,904 in 2013 by 11.82 times. Results from the exchange rate method show that China ranked 162nd in 1990 and 80th in 2013. China’s per capita GDP grew from $314 in 1990 to $6807 in 2013 by 21.67 times. Per capita GDP calculated using the exchange rate method grew significantly faster than that calculated using the PPP method.