Measuring China’s performance in the world economy: A Benchmark Comparison between China and the UK ca. 1910

This paper provides the first estimates of purchasing power parity (PPP) converters from the production side between China and the UK for the early 1910s. It gives a new starting point to evaluate the economic development in pre-modern China during the early industrialization since the late 19 th century. The estimated PPPs for manufacturing industries provide relative levels of producer prices in China, necessary for the calculation of comparative output and labor productivity. We will use this new information to answer the question which level Qing China’s economy had reached after half a century of industrialization in the period between the 1860s and1910s. The 1910s estimate will also be used to obtain a better understanding of the industrial development during the first four decades of the 20 th century. By bringing in prices for the agricultural sector we present a new estimate of the welfare level for the total economy. JEL classification codes: E23 E30 N15 N9 1 Ye Ma, University of Groningen, [email protected]; Herman de Jong, University of Groningen, [email protected]