International Comparisons of GDP: Issues of theory and practice
Ian Castles &
David Henderson
Published: March 2005
When it comes to making international comparisons of real GDP, different views,
conventions and practices are still in evidence. The authors set out the case for
using purchasing power parity (PPP) converters for this purpose, rather than
conversions based on exchange rates, and give reasons for rejecting various
arguments that are still widely made to the contrary. In doing so, they provide
instances of the differing current practices of international agencies, and argue
the case for greater uniformity and consistency on their part. They make a
number of suggestions, general and specific, for improving the quality and
presentation of cross-country comparative data.