Comparing China's GDP Statistics with Coincident Indicators
33 Pages Posted: 23 Feb 2011
Date Written: February 18, 2011
Abstract
We use factor analysis to summarize information from various macroeconomic indicators, effectively producing coincident indicators for the Chinese economy. We compare the dynamics of the estimated factors with GDP, and compare our factors with other published indicators for the Chinese economy. The indicator data match the GDP dynamics well and discrepancies are very short. The periods of discrepancies seem to correspond to shocks affecting the growth process as neither autoregressive models for GDP itself nor various coincident indicators are able to forecast them satisfactorily.
Keywords: factor models, principal component, GDP, China
JEL Classification: C38, O4, P2
Suggested Citation: Suggested Citation
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