On the Problems and Methods for International Comparisons of GDP

The introductory part of the article argues the relevance of continuing research on the conceptual and methodological problems of international comparisons of macroeconomic indicators due to begging of new round of the International Comparison Program (ICP) of GDP by Purchasing Power Parities (PPPs), designed to build unique science-based systems of statistical data on the world economy and the place of each country in it.

The body of the article formulates the author's view of the basic methodological approaches to international comparisons of macroeconomic indicators; it also focuses on several areas for improving the quality of international statistics. It is argued that to improve the quality of international comparisons, there is a particular need to implement in the national statistical practice of individual countries the methodological procedures for measuring the following main economic transactions: research and development expenditure, government expenditure on the acquisition of weapons systems, imputed output of financial intermediation services, updated in the 2008 SNA. The paper explains the need for updating some purchasing power parities methodology provisions and postulates, especially those concerning non-market government services. According to the author, it would be beneficial to continue the debate on the merits and limitations of the Elteto, Koves and Szulc (EKS) method and the Geary – Khamis method.

The conclusion is that the development of standards for international comparisons of PPP-based GDP will be in the interests of the governments across the world, national central banks, international organizations, and, of course, will contribute to solving modern problems in national socio-economic statistics and Russian statistics, in particular.

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