The Gross Domestic Product of Czechoslovakia, 1970-1980 Peter Havlik SWP772 Friedrich Levcik WORLD BANK STAFF WORKING PAPERS Number 772 A Background Study for Dollar GNPs of the U.S.S.R. and Eastern Europe WORLD BANK STAFF WORKING PAPERS jjj Y 5g Number 772 A Background Study W57 for Dollar GNPs of the U.S.S.R. and Eastern Europe WC 7 n?. 77.2 The Gross Domestic Product of Czechoslovakia, 1970-1980 Peter Havlik Friedrich Levcik 'MrOL 4ST 'EAi Iu r The World Bank Washington, D.C., U.S.A. Copyright (© 1985 The Intemational Bank for Reconstruction and Development/THiE WORLD BANK 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. All rights reserved Manufactured in the United States of America First printing November 1985 This is a working document published informally by the World Bank. To present the results of research with the least possible delay, the typescript has not been prepared in accordance with the procedures appropriate to formal printed texts, and the World Bank accepts no responsibility for errors. The publication is supplied at a token charge to defray part of the cost of manufacture and distribution. The World Bank does not accept responsibility for the views expressed herein, which are those of the authors and should not be attributed to the World Bank or to its affiliated organizations. The findings, interpretations, and conclusions are the results of research supported by the Bank; they do not necessarily represent official policy of the Bank. 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Peter Havlik is an economist at, and Friedrich Levcik director of, the Vienna Institute for Comparative Economic Studies; both are consultants to the World Bank. Library of Congress Cataloging-in-Publication Data Havlik, Peter. The gross domestic product of Czechoslovakia, 1970-1980. (World Bank staff working papers ; no. 772) Includes bibliographical references. 1. Gross national product--Czechoslovakia. 2. Czechoslovakia--Economic conditions--1945- I. Levcik, Friedrich. II. Title. III. Series. HC270.295.I5H38 1985 339.3437 85-22725 ISBN 0-8213-0634-0 FOREWORD Centrally planned economies (CPEs) account for a significant share of the world's production and income. In view of their importance in the world economy, and to facilitate international comparative analysis, for many years the World Bank has included statistical data on these countries in those of its publications that aim for universal coverage, such as The World Bank Atlas. Among these data, those relating to gross national product (GNP) and to GNP per capita are the most important, and the Bank also needs them for operational purposes for its member countries, which now include some CPEs. In the CPEs prices are generally set administratively and are often loosely or not at all related to the relative scarcity and costs of production of goods and services. This is particularly true of the exchange rate. The World Bank normally uses exchange rates for converting GNP figures from national currencies into dollars (or into any other numeraire), an indispensable step for international comparisons. The choice of an appropriate conversion factor therefore poses particularly difficult problems for most CPEs. A further difficulty arises because the national accounts of the CPEs are based on the concept of net material product (NMP), which differs from the concept of GNP used in market economies. To derive the GNP numbers of those CPEs that compile only NMP accounts, various adjustments must be made. The data required for making these adjustments are not always fully available. Finally, a separate set of issues arises in relation to year to year comparisons within the same CPE. For these too and the corresponding growth rates, official data are not strictly comparable to growth rates of the market economies. In early 1982 a research project sponsored and financed by the World Bank was undertaken to assess alternative methods of computing the per capita dollar GNP levels and growth rates of CPEs. It covered eight countries: Bulgaria, Cuba, Czechoslovakia, the German Democratic Republic, Hungary, Poland, Romania and the U.S.S.R. The purpose of this research project was to define the best among known methods that could be applied to CPEs as a group and make use of available data. It was not its aim to establish and define new computation methods whose application would have required many more years of effort, even if data had been available. - This research project has produced eleven reports, which are published simultaneously. The main report authored by the principal researcher for the project, Paul Marer, is published as a book, Dollar GNPs of the USSR and Eastern Europe (Johns Hopkins University Press, 1985). The eight country studies and two background papers are published separately in the World Bank Staff Working Paper series. The main report provides highly valuable insights into the problems related to the estimation and comparison of the GNPs and GNP growth rates of the CPEs. It also gives the author's best estimates of the actual values of these indicators for the majority of CPEs covered by the project, that is those for which there was some statistical basis for computing estimates or choosing between those already available. The main report on the Research Project on CPEs concludes that adequate GNP data in national currencies can be derived for most CPEs by adjusting official information about net material product in the light of statistical and other information known to country experts. It further concludes that the best method generally applicable to CPEs for converting such GNP data from local currencies into dollars would use conversion rates based upon purchasing power parity (PPP) information. For comparison with corresponding World Bank data on other World Bank members, these conversion rates should be adjusted to correct for the expected differences between the PPP rates and the actual official exchange rates (the "exchange rate deviation index"). The needed adjustments are estimated econometrically from the actual differences observed at each level of per capita GNP among the thirty-one market economies participating in Phase III (1975) of the International Comparison Project (ICP). For Hungary, Romania, and Poland, PPP information is derived from Phase III (1975) of the ICP, while for Czechoslovakia, the German Democratic Republic, and the U.S.S.R., it is derived from private bilateral comparisons chain-linked to the ICP data. This method yields a range of per capita GNP estimates: for example, $2,700 to $5,700 with a midpoint of $4,190, for the U.S.S.R. in 1980. No PPP estimate was available, and no GNP per capita figure in US dollars calculated, for Bulgaria and Cuba. The main report also concludes that the official estimates of growth rates of the CPEs "tend to yield varying degrees of upward bias." For all countries except Hungary, the experts lean toward preferring alternative indices, constructed by outside experts with partial information, although these too present problems (especially for countries other than the U.S.S.R.) and the experts therefore fell short of endorsing them. The author of the study on Hungary leans toward preferring the official index at this time. The country studies and background papers that are being issued in the World Bank Staff Working Paper series provide additional details on the CPEs studied and their exchange rates. Some of the country studies include the respective authors' estimates of per capita GNP in U.S. dollars. These estimates, however, are the individual authors' experimental computations, based on methods that may not be consistently applicable to CPEs generally. There remain major uncertainties about GNP conversions by means of "adjusted PPPs." In addition to numerous remaining theoretical .and practical problems associated with calculating PPPs within the framework of the centrally coordinated ICP, private estimates such as those used in this study for three CPEs still appear to be subject to a wide margin of error. Furthermore, there is no other way to estimate the exchange rate deviation index than to derive it from observation of the countries covered by the ICP (almost all of which are market economies). The applicability of an index derived in this fashion to the CPEs, whose economic structures are very different, remains subject to reservations. The present study used ICP Phase III data relating to the year 1975, extrapolated to 1980. Phase IV ICP data already published shows estimates directly relating to 1980 for European countries, including Hungary and Poland; Romania, a participant in early phases of the ICP, has not pr9vided the data needed for participation in Phase IV. It is noteworthy that Phase IV estimates of Hungary's and Poland's per capita GNP in 1980 are lower than the 1975 results extrapolated to 1980, used by the Research Report on CPEs. These differences are partly due to the greater attention paid in Phase IV to quality differences and to other methodological advances. During the course of 1983 the Bank, with the help of a distinguished panel of experts, 1/ undertook a review of the methodological problems and issues related to the estimation of internationally comparable per capita GNP figures for all countries. The preliminary results of the research project on CPEs constituted an important input into that review, whose findings and 1/ Abram Bergson, Harvard University, Chairman; Andre Vanoli, Institut National de la Statistique et des Etudes Economiques; and Parmeet Singh, Commonwealth Secretariat. recommendations were approved by the panel of experts. In light of the review; the Bank has decided that. for the time being (that is, at least until data availability and other problems related to PPP information are resolved), official GNP information converted at official exchange rates should generally continue to provide the basis of the per capita GNP estimates published in The World Bank Atlas. Exceptions to this rule are to be made only when official GNP data, in national currency, is exceptionally bad or compiled in ways which diverge in an exceptionally large measure from the usual methods and standards, or when the official exchange rate is exceptionally far removed from the rate effectively governing foreign payments transactions. When there is a reason to believe that such exceptional circumstances prevail, and adequate information exists, appropriate adjustments are to be made. When adequate information does not exist and cannot be obtained, no estimates are to be published. At the time of writing this foreword, it seems likely that lack of information will for some time prevent the Bank from making estimates of the per capita GNP of most CPEs. Thus The World Bank Atlas published in early 1985 contains an estimate of the values of GNP and GNP per capita for only one European CPE, Hungary. Following the review endorsed by the panel of experts, the World Bank has adopted calculation methods and obtained results which, for a few countries, are different from those of the research project of CPEs. The Bank's general methodology must be applicable to all its member countries, including most market economies and only a few CPEs; the Bank could demand that its member countries provide additional information when needed; and it' could, and did, decide not to estimate the per capita GNP of countries for which a minimal, but still fairly extensive set of information could not be obtained. As noted earlier, however, the research project on CPEs has aimed at defining a method consistently applicable to all CPEs and one that could make use of available information. These differences in aims and constraints readily explain the differences in results. The research project on CPEs, whose major findings are published in the main report, has greatly enhanced the understanding of the CPEs' unique macroeconomic accounting frameworks and pricing systems. It has provided insight into many substantive issues, in particular the relationship of domestic and international prices. The individual country reports, published separately, shed much light on many important country-specific issues. The Bank will continue to build upon the valuable findings of the research project on CPEs in its future efforts to understand these important components of the global economy. Jean Baneth Director Economic Analysis and Projections Department Background Studies for Dollar GNPs of the U.S.S.R. and Eastern Europe Issued as World Bank Staff Working Papers A Study of Cuba's Material Product System, Its Conversion to the System of National Accounts, and Estimation of Gross Domestic Product per Capita and Growth Rates. National Accounts Statistics and Exchange Rates for Bulgaria. The Gross Domestic Product of Czechoslovakia, 1970-1980. The Estimation of Gross Domestic Product and Its Growth Rate for the German Democratic Republic. National Accounts and the Estimation of Gross Domestic Product and Its Growth Rates for Romania. The Gross National Product of Hungary: Important Issues for Comparative Research. National Income Statistics for Poland, 1970-1980. The Conversion of National Income Data of the U.S.S.R. to Concepts of the System of National Accounts in Dollars and Estimation of Growth Rates. Exchange Rates in Eastern Europe: Types, Derivation, and Application. Exchange Rates, Foreign Trade Accounting, and Purchasing-Power Parity for Centrally Planned Economies. A b s t r a c t The paper considers the theoretical and practical problems connected with the estimation of Gross Domestic Product for the centrally planned economy of Czechoslovakia. In the methodological part the basic differen- ces between the SNA and MPS accounting systems are discussed and several transformation procedures are presented. The price formation used in Czechoslovak MPS aggregates is briefly described before the problem of converting-the data in national currency to US dollars is highlighted. Alternative GDP estimates, exchange rates and growth rates are compared. Own estimates, based on the purchasing parity type comparison with Austria, are presented in comparison with official Czechoslovak indexes. The appendices contain the detailed description of MPS/SNA transformation procedures as well as the statistical tables illustrating the process of GDP reconstruction based on Czechoslovak data for the period 1970-1980. S u m m a r y The paper analyses the problem of obtaining estimates of the Gross Domestic Product for the centrally planned economy of Czechoslovakia which would be comparable with Western statistics. The Czechoslovak authorities publish only a part of the system of balances of the national economy, drawn up according to the MPS (Material Product System) methodo- logy. The system differs from the SNA (System of National Accounts) concept mainly in that it excludes the so called non-productive services which - according to the MPS system - do not contribute to the generation of new value and are treated basically as redistribution. In order to obtain the SNA indicator of GDP, a rather straightforward method was selected: the standard form of MPS Global Financial Balance is presented in a more detailed form and items differentlv treated within the SNA are regrouped appropriately. Although theoretically relatively simple, the reconstruction of SNA indicators still poses a difficult problem as only a part of the Global Financial Balance is generally published. Because of the lacking data and the use of estimates, the deviations of the GDP in current national currency units obtained by this method oscillate very probably within a range of about + 3-4 % (of the actual GDP if all required statistical information would be available). The transformation procedure adopted, based as far as possible on the official statistical data, does not leave much room for adjustments allowing for the distorted relative prices (mainly subsidized personal transport and housing, heavily taxed industrial consumer goods, etc.). A brief description of the Czechoslovak price patterns (producer, consumer and foreign trade prices) sheds some light on the impact of pricing on the structure of GDP aggregates. A separate problem is the selection of a realistic exchange rate to be used for the conversion of GDP expressed in national currency to US dollars. Six different conversion coefficients are discussed and the scant economic meaning of the official exchange rate is illustrated. Even if no ultimate solution for the realistic exchange rate is presented, the alternative, purchasing power parity type conversion coefficients are clearly more appropriate. The decisive impact of selecting the correct conversion coefficient on obtaining the comparable GDP estimate in US dollars is stressed: the relative differences of various GDP estimates in national currency are negligible in comparison with the range of possible GDP estimates in US dollars. Future research should therefore be focused either on more plausible ways of assessing the real purchasing power of currencies used in centrally planned economies or on to some other method of obtaining comparable GDP estimates requiring no exchange rate conver- sions. A volume of GDP per capita of about US $ 4500 in 1980 is the authors' assessment. The last part of the paper evaluates the real growth of the Czechoslovak economy in 1970-1980. The upward bias in aggregates given at official constant prices in the centrally planned economies is present also in the case of Czechoslovakia. The estimated index of realistic price increases in the field of consumption is derived from the comparison of relative changes in purchasing power parities between the Czechoslovak and Austrian currencies. Application of this index to the whole GDP gives an approxi- mate lower boundary to the probable overall real price movements: the estimated inflation in Czechoslovakia was about two times as high as the officially reported one. The paper contains two appendices: the first one describes in detail the MPS/SNA GDP transformation algorithms, the second presents 21 statistical tables illustrating all estimations using the Czechoslovak data for the period 1970-1980. Table of Contents Page No. I. Derivation of GDP and Comparison of Alternative Estimation (in National Currency) ........................ 1 Inventory of the Main National Income Aggregates Published by the Federal Statistical Office of Czechoslovakia ....... l Method used for Transformation of MPS to SNA concept ......... 2 Adjustments Necessary for Transformation...... .................3 Derivation of GDP from Transformation Matrices .............*..4 Differences between CMEA and Czechoslovak MPS Methodologies .....*..... ........... .... ......................... 5 Derivation of Czechoslovak GDP Based on Available Data . . 6 Comparison with Alternative GDP Estimates in National Currency .... ........... o..*o ..o.l.................. 7 II. Price Formation Used in Czechoslovak MPS Aggregates. ...... 20 Producer Prices..... o.o..oo.22 Retail Trade (Consumer) Prices......o.............. , - 25 Foreign Trade Prices....o... ....... ....o....... ......... 28 III. Conversion from KCS to US Dollars.. ............oo28 IV. Assessment of the Real Growth of the Czechoslovak Economy in 1970-1980....... .............*00* ... .... 32 Appendix A: Conversion of MPS Data to SNA Indicators......e........39 Appendix B: Statistical Tables with Calculations and Notes........ 62 I I. DERIVATION OF GDP AND COMPARISON OF ALTERNATIVE ESTIMATES (IN NATIONAL CURRENCY) Inventory of the Main National Income Aggregates Published by the Federal Statistical Office of Czechoslovakia The Federal Statistical Office of Czechoslovakia (FSO) publishes only a part of its system of balances of the national economy, drawn up according to the MPS methodology. In essence, only the aggregates Gross Material Output (GMO) and Net Material Product (NMP) are regularly published in the Statis- tical Yearbooks. The most important balance, the so-called "Global Financial Balance", or more precisely the "Balance of the Production, Distribution, Redistribution and Use of the GMO and NMP" is considered classified informa- tion and is not published. The incomes generated in the productive sphere are linked, in the redistribution part of this balance, via the budget (comprising both the state and national committees budgets), with the non-productive sphere (excluded according to the MPS methodology from the national accounts). The balance equates the final incomes of the population and of the enterprises of the productive sphere and of the enterprises and institutions of the non-productive sphere (including depreciation) with the means of pro- duction and consumption goods generated at home and imported and destined for consumption, gross capital formation and exports. No doubt the publication of the Global Financial Balance would greatly facilitate the transformation of the aggregates according to the MPS methodology into the national accounts based on the SNA concept. In recent years the FSO has published more statistical information on the non-productive sphere, e.g. the "Balance of Money Incomes and Expenditure -2- of the Population", and, in a very aggregated form, the "Incomes and Outlays of the Non-Productive Sphere", but this information cannot make up the gap created by withholding the Global Financial Balance data. Method Used for Transformation of MPS to SNA Concept There is no information whether the Federal Statistical Office has made computations of the Czechoslovak national accounts according to the SNA concept for internal purposes. The Research Computing Centre of the UN (Vyskumne vypoctov6 stredisko OSN) in Bratislava, Czechoslovakia has made such a computation for 1970/1 using rules and procedures recommended by the Conference of European Statisticans of the UN/ECE, Geneva./2 The present country study is using Bratislava (1972) as a point of departure for our own computations. The main advantages of using such an approach are: a) the conversion matrices (presented in Appendix A) can be used for transformation to GDP based on primary incomes, final use and by origin of social product; furthermore the GDP aggregate may be disaggregated into major components, b) a time series 1970-1980 can be computed,/3 c) the actual results of Bratislava (1972) for 1970 can be utilized (with some additional modifications) and some of the data not presented in the published official statistical materials can be estimated for later years on the basis of the computation results of the Czechoslovak investigators (who had access /1 Transformation of Indicators from Czecholovak MPS System to the SNA (in Slovak). Research Report 48, VVS OSN, Bratislava, December 1972. /2 Rules for Conceptual Adjustments Between the Systems of National Accounts and Balances in Use in Europe. Conf. Eur. Stats. /WG.22/Gr.l/l, March 1965. /3 All relevant statistical tables with detailed calculations and notes - see Appendix B. - 3 - to statistical sources not usually published - e.g. the Global Financial Balance). A disadvantage of the procedure selected may be that there is not much room to depart from the pricing procedures actually used in Czechoslova- kia (e.g. subsidized personal transport and housing). This may have an impact on the structure of the GDP, but as the main aim of the World Rank project is to obtain figures on the volume of the GDP aggregate only, this disadvantage does not seem to be decisive. A short discussion on this subject and its implication on a possible understatement of the GPD will be given in the part discussing pricing problems. Adjustments Necessary for Transformation The adoption of the procedure developed in Bratislava, 1972 (and based on Conf. Eur. Statis, 1965) requires presentation of the MPS data in a form allowing for regrouping individual items treated differently in the indicators adopted in SNA. For this purpose the standard form of MPS Global Financial Balance must be presented in a more detailed way and items with different treatment within the SNA concept must be regrouped appropriately. The resulting Transformation Matrix I (see Appendix A) may be used as a vantage point for the construction of SNA indicators. Presentation of this matrix, based in principle on Bratislava (1972) is somewhat different from that presented in Conf. Eur. Stats. mainly because the chief purpose is the transformation from MPS to SNA only and MPS standards are taken as a base for the necessary adjustments. In the Transformation Matrix I all items subject to different treatment in MPS and SNA are indicated. As the number of differences is - 4 - rather numerous, only the most important ones (especially from the quantitative point of view) are taken into account. Derivation of GDP from Transformation Matrices Although the number of non-zero elements in the Transformation Matrix I is relatively low, the reconstruction of a matrix with real data still poses a serious problem. The main source of data - Global Financial Balance - is not generally available as it is not published in complete form in accessible statistical materials. However, if our aim is to construct global indicators only (i.e. GDP), the number of data needed for transformation can be even more reduced. Yet in some cases estimation of missing items is necessary as well. GDP Based on MPS Data on Primary Incomes GDP may be calculated from MPS data by several alternative methods. The first possibility is to start with Net Material Product and primary incomes generated within the non-material sphere. In this case the NMP must be adjusted mainly for wages and salaries and private incomes in the non- material sphere, travel expenses, depreciation, etc. The adjustment procedure, using the elements indicated in Transformation Matrix II, is described in Appendix A. GDP Based on MPS Data on Final Use GDP may also be derived from MPS data on final use of NMP. MPS' Net Material Product (National Income) must be adjusted for incomes and costs within the non-material sphere, for balance of exports and imports and some other minor transfers. The adjustment procedure uses the elements of Transformation Matrix III (see Appendix A). -5- GDP Based on NMP (MPS) by Origin Finally, MPS data on the origin of Global Output and Net Material Product may be used as a starting point for the derivation of GDP. This time, NMP must be adjusted mainly for net output of non-material services (net of material consumption and depreciation), costs of dwelling services, cost of business travels, depreciation in the productive sphere, etc. (Appendix A). Differences Between CMEA and Czechoslovak MPS Methodologies The transformation procedures presented in this study are based on MPS/SNA links (Conf. Eur. Stats. 1965) using standard CMEA concepts./4 Unfor- tunately, each CMEA country uses a slightly different variation of its MPS standard. Most of these variations are of a minor character (e.g. shifts between industries, etc.), having no impact on the transformation of global indicators, some of them however need to be taken into account. In the case of Czechoslovakia, differences of this kind are mainly the following: (a) The Czechoslovak methodology does not include in the productive (material) sphere personal transport and the non-material part of communica- tion services. While total production of communication services may be rela- tively easily estimated, it is not so with the value of production of personal transport. The CSSR study (Bratislava, 1972) approximates both values by incomes of the non-material sphere from non-material services. (b) Analogous with (a), productive (intermediate) consumption should be adjusted. /4 The Basic Methodological Principles on Construction of Statistical Balances of National Economy (in Russian). CMEA, Moscow, 1969. - 6 - (c) Net Material Product should be adjusted for "net output" of personal transport and non-material communications. (d) Adjustments in (b) should reduce the consumption of institutions providing services. (e) Gross output of personal transport should be included in personal consumption. (f) Output of non-material communications should be split into three parts and added to: - private consumption - consumption of institutions providing services - collective consumption of standard MPS (CMEA) aggregates. Derivation of Czechoslovak GDP Based on Available Data Even if we limit ourselves to the transformation of global indicators only, the search for necessary data still poses a serious problem. The task given according to the agreed outline of the country studies is, however, far more ambitious. In addition to the global indicator of GDP derived from NMP,, also the structural components within this aggregate: (a) by sectors of origin, (b) by primary incomes (by distributive shares), (c) by final use, are to be computed. This multiplies the difficulties to obtain, from offi- cially published Czechoslovak statistical materials, the necessary data./5 In many cases estimates had to be used--as can be seen from detailed notes to the individual transformation tables--either because a certain statistical information was available only for a limited number of years and for the other years of the time series own extrapolations and estimations had to be made, or the necessary data were missing altogether and certain proxies had to be used, taking the benchmark data used by the Czechoslovak researchers (Bratislava, 1972) for 1970 as far as possible as a point of departure. Because of the lacking data and the use of estimates, the deviations in our estimates of the GDP in current prices very likely oscillate within a range of plus/minus 3 to 4% (of the actual GDP) if computed with precise statistical information. Adjustment of Czechoslovak NMP to the CMEA Methodology One of the aims of the World Bank Project is to make the National Accounts aggregates of the CPEs mutually comparable. For that reason national peculiarities have to be eliminated and the original data presented in the standard MPS (CMEA) form. In the case of Czechoslovakia this means primarily to include personal transport and non-material communications into the NMP aggregate. Net output of non-material communications is easily obtained from statistical yearbooks. It is equal to the published value of net output of material communications which itself in Czechoslovak statistical practice is estimated as 50% of net output of total communications (both material and non- 5/ The Czechoslovak authorities did not respond to the World Bank request to cooperate in the effort of deriving GDP/GNP data according to the SNA concept. - 8 - material)./6 A more complicated procedure is necessary to estimate the net output of personal transport. In Czechoslovakia output of material transport is computed on the basis of data on incomes of transport enterprises (from transportation of material goods, see SNTL/ALFA, 1969). We used a similar approach for estimating the net output of personal transport. From published data on the performance of different types of personal transport the total value of net output in personal transport was estimated and inserted in Table 1 (Appendix B). As the costs of personal transport are greater than incomes (personal transport in Czechoslovakia is heavily subsidized) the resulting aggregate - Net Material Product according to the standard MPS methodology - is lower than that published in Czechoslovak statistics./7 The relative difference between the two versions of Net Material Product is almost constant during the whole period. DEVELOPMENT OF CZECHOSLOVAK AND CMEA VERSIONS OF NMP (mil. Kcs., current prices) Average rate of growth 1970 1975 1980 1970-1980 NMP (CSSR) 312.345 409.970 480.107 in % 100.00 131.26 153.71 4.4 NMP (CMEA) 307.835 404.322 474.980 in % 100.00 131.34 154.30 4.3 Ratio of CSSR/CMEA NMP versions (in %) 101.47 101.40 101.08 /6 J. Kaspar, J. Jilek, M. Matejka, V. Roubicek: Economical Statistics (in Czech). SNTL/ALFA, Prague 1969, p. 110. /7 This is also the finding of Bratislava (1972) for 1970 and R. Wintrova, The Balance of National Economy: The Tool for Analyzing the Process of Reproduction in Czechoslovakia (in Czech). Academia, Prague 1979, p. 96. - 9 - The more detailed results of the adjustment of the Czechoslovak version of NMP to the standard CMEA MPS concept are presented in Table 1 (Appendix B). Derivation of GDP from Data on NMP According to Primary Incomes The division of the NMP according to primary incomes (which is a point of departure for the transformation) distinguishes the so-called fund of individual distribution (primary incomes of population) and the fund of socie- tal (collective) distribution (primary income of enterprises), both limited to the material sphere only. In the aggregate of primary incomes of the popula- tion not only wages and salaries generated in the material sphere, but also the money incomes and incomes in kind of cooperative farmers from cooperative activity and the private incomes of the population (from different heteroge- neous activities within the material sphere) are included. The category of private incomes according to the Czechoslovak methodology includes the net incomes from private plots of cooperative farmers, the net incomes of private peasants (40,000 persons in 1980), and the net incomes of a small number of persons working as self-employed in the material sphere. On the other hand, in the SNA methodology, the following types of primary incomes can be distinguished: compensation of employees; operating surplus including indirect taxes; and consumption of fixed capital. In the transformation procedure, the incomes of cooperative farmers from cooperative activity are treated in the same way as wages and salaries of othe&r workers in the material sphere, while, according to the SNA, private incomes (including those from private plots of cooperative farmers) are shifted from the primary incomes of the population to the primary income of enterprises (operating surplus). This procedure takes into account the ambivalent role of cooperative farmers with respect to their social - 10 - standing. In their cooperative activity they play essentially the same role as any other wage earner in the material sphere. They get a monthly remuneration and participate in the enterprise results of the cooperative only by end of the year premia. But this type of remuneration is also applied in state-owned enterprises. From private plots, on the other hand, the cooperative farmers receive an income from the sale of agricultural products after deduction of the production costs. Further in the course of transformation procedure, private incomes originating from the non-material sphere have to be added to NMP. This figure. is not directly available and our estimate is based on the benchmark informa- tion from Bratislava (1972). An alternative way of assessment (based on the aggregate money incomes and outlays of the population data) would lead to somewhat higher results: for 1980 about 3 bill.Kcs higher than our estimate found on line 3 of Table 2 (App. B). On the other hand, travel expenses of employees in the material sphere, treated in the MPS concept as a part of primary incomes of the population, should be deducted according to the SNA methodology as here they form part of intermediate consumption of enterprises. There was no possibility of estimating this item from available statistical material. It is likely that the above-mentioned possible underestimation of private incomes originating from the non-material sphere is compensated by omitting the deduction of the travel expenses. Further, losses on stocks have been estimated as a difference of total losses and losses on fixed capital stock, both available from published statistical data. All other steps of the transformation procedure are sufficiently explained in the notes to Table 2 in Appendex B. The GDP derived from data according to primary incomes increases over time in relation to the NMP (CMEA version) from about 117% in 1970 to 120% in 1980. - 11 - DEVELOPMENT OF GDP DERIVED FROM DATA ON PRIMARY INCOMES (mil. Kcs, current prices) Average rate 1970 1975 1980 of growth 1970-1980 GDP 360.894 476.944 569.604 in % 100.00 132.16 157.83 4.7 NMP (CMEA) 307.835 404.322 474.980 in % 100.00 131.34 154.30 4.4 Ratio of GDP to NMP (CMEA) 1.172 1.180 1.199 As to the structure of GDP by primary incomes, under labour incomes (according to SNA diction: compensation of employees) the following items were summarized: the primary incomes according to the NMP concept (compensations of wage and salary earners in the material sphere and earnings of cooperative farmers from cooperative activity) minus private incomes in the material sphere plus compensations of wage and salary earners in the non-material sphere plus the employers' contributions to social security in both material and non-material spheres. The non-labour incomes (operating surplus including net indirect taxes) are calculated as the difference between GDP and the labour incomes plus depreciation in the material and non-material spheres. The distribution according to labour and non-labour incomes and depreciation remains fairly constant during the observed time period 1970-1980 (Tables 3 and 4 in Appendix B). For comparative purposes the structure of the Net Material Product (according to MPS) by primary incomes is also given (Tables 5 and 6). As the NMP aggregate is net of depreciations, labour and non-labour incomes only are distinguished. In this aggregate the proportion of non-labour incomes is - 12 - increasing over time: a development to be expected since employment in the non-material sphere is increasing faster than that in the material sphere and the costs of the faster growth of the non-material sphere have to be covered from the non-labour incomes generated in the material sphere. The faster growth of the non-material sphere results also in the slightly greater average annual rate of growth of GDP than NMP (4.7 vs 4.4% p.a. in 1970-1980). Derivation of GDP from Data on NMP According to Data on Final Use The aggregate of the NMP is composed of the final (material) consump- tion of the population, other final (material) consumption, net fixed capital formation and capital formation in stocks. After an adjustment for losses on fixed capital and stocks and for the foreign trade surplus or deficit we obtain the NMP produced as given in Table 1, Appendix B (after further adjust- ments for personal transport and non-material communications). In the trans- formation procedure we have firstly to add purchases of nonmaterial services by households. This item has to be estimated as explained in notes 2-5 of Table 7 in Appendix B, because the published statistical materials do not distinguish household expenditures on services by the nature of services purchased (material and non-material). A second adjustment item, and one of the most troublesome, are the expenditures on housing. As in the other CPE countries, so also in Czechoslovakia, housing is heavily subsidized by the state and the rents paid by the population do not cover the operating costs and depreciation of housing. An additional difficulty in obtaining the necessary data on housing arises from the fact that the only available data source (the published table on money incomes and outlays of the population) gives no separate data on housing but treats it together with communal services. Nor do direct data - 13 - exist for estimating the imputed rent for owner-dwellers. By adding household expenditures on dwelling and communal services (combined) to the NMP under No. 6 of Table 7 a certain overestimation of the household expenditures on non- material services takes place, as only a part of the communal services has non-material character. On the other hand, no item for the imputed rent was taken into account./8 We assume that the over- and under-estimation cancel each other out. Moreover, under the methodology used there is no room for increasing the household expenditures on housing by the value of the housing subsidies. In addition to these purely technical reasons it is also conceptually debatable whether it is correct to increase the relative price of one expenditure item in the national accounts (as for instance the Alton group is doing) but to leave other relative prices (e.g. for public transport, but also for the overpriced durables and many other manufactured goods) unchanged. /8 There are more approaches in assessing the value of imputed rents. One may, for instance, take the data on privately owned houses (data from the population census - see SY 1981/93) - in 1980 there were 2441 th. of dwellings in private houses in Czechoslovakia - and assume the same average rent as that charged in state-owned houses: 1695 Kcs in 1980 (SY 1981/553). An assumption about identical average rents in private and public houses would be justified if the quality of both types of houses were approximately the same. Such an assumption may hold if one takes into account that the lower quality of some of the private houses in rural areas is compensated by the higher standard of private houses in towns (owned largely by upper strata in the society). This procedure would lead to an estimate of the value of imputed rents amounting to 4137.5 mil. Kcs in 1980 (approx. 0.7 % of GDP). Another possibility is to take the share of the value of private houses in the value of the total housing stock (amounting to 31 % in 1975 - see Academia, 1979 p.83) and estimate the imputed rents proportionally to the costs of state owned dwellings (9.614 mil. Kcs in 1980 - see SY 1981/553). This procedure leads to a somewhat lower estimate for the value of imputed rents: 2.980 mil. Kcs in 1980 (0.5 % of GDP). - 14 - The next item to be deducted from NMP are the material costs in business travel expenditures. Also on this item no data exist in the published statistical materials. We used an estimate suggested in Bratislava, 1972 (see note 7 to Table 7). The lines 8 and 9 in Table 7 from Appendix B, comprise the material costs of institutions from the non-material sphere which have to be deducted as they are already included in the collective consumption of the NMP. The other costs of services provided by budgetary institutions (to be added after deduction of incomes from these services) had to be estimated because the published material again lacks this information. The procedure used was to take the total budgetary expenditures from the consolidated state and national committee budgets, to deduct from this item the budgetary expenditures for productive purposes, deduct the transfers from the state budget to the budget of national committees (to avoid double counting), and lastly, to deduct the own incomes of the budgetary institutions providing services. The other items are sufficiently explained in the notes. As to the omission of the external balance arising from exports and imports of non- material services, one can assume that the figure - especially in the later ye rs - may have been a negative one, because of the net outflow of the payments for licences and royalties and for servicing the external debt./9 The only figure available (for 1970) amounted to excess of imports over exports by 780 mill.Kcs (Bratislava, 1972). /9 F.L. Altmann, Wachstumspause oder Krise. Tschechoslowakei 1981/82. Working Paper 85, March 1982, Osteuropa-Institut Mtlnchen, p. 26. - 15 - The GDP calculated from data on final use is greater by 17 % than the NMP in 1970 and its share is steadily increasing over time. For 1980, the estimate of the GDP, (derived mainly from provisional data) seems to be biased upwards. The GDP exceeds the NMP by almost 24 %; it may be that the figures for 1980 will have to be adjusted if definite statistical information would be available. Tables 8 and 9 in Appendix B, give the structure of the GDP by final use. Notes 1 and 2 to the Table 8 explain the computations leading to the sub-aggregates of residential households' consumption expenditures and government final consumption expenditures. Paragraphs 3 and 4 of the notes explain how we arrived at the gross capital formation and at the balance of exports minus imports. Also in this table the balance of external transac- tions in non-material services had to be omitted owing to the lack of data. As to the structure of the GDP by final use, the share of final consumption expenditures of government is increasing over time from 14 to 17%, the share of gross capital formation is increasing in the first half of the seventies from 34 to 36% and declining with decelerating economic development in the second half of the 1970s, reaching 32% in 1980. The share of consumption expenditures by residential households is fairly constant during the period with the exception of the years 1977 and 1978. The sudden increase of this share in these two years is connected with the reform of producer prices (see further discussion on pricing). For comparative purposes the structure of the NMP by final use is given as well (Tables 10 and 11, Appendix B). The tendencies of development are the same as described for the GDP above. It should, however, be pointed out that according to the MPS methodology the NMP used domestically has a dif- - 16 - ferent value and meaning in comparison with the NMP produced, as the latter aggregate has to be adjusted for losses and for the balance of merchandise trade. Up to 1975 and again in 1979 and 1980 the NMP used was smaller than the NMP produced owing to these adjustments. GDP Derived from Data on Gross Material Output and NMP by Origin Only rough approximations are possible for the computation using this method because the most essential statistical information - the gross output of on-budgetary enterprises providing services - is missing (Table 12, Appendix B). Also, the data on costs of services provided by budgetary organizations are not directly available. In Table 12 similar procedure as in Table 7 is used for assessing the gross output of non-material services in both budgetary and non-budgetary institutions from the consolidated state and national committees' budget expenditures (see Notes 2 and 3 to Table 12). The material consumption in the non-material sphere (Note 4) has to be deducted likewise as the payments for nonmaterial services, as they are already included in the gross output of the non-material services. For the other entries see the remaining notes./10 Tables 13 and 14 in Appendix B give the structure of the Gross Product divided into intermediate consumption and GDP. The notes explain the procedure of computation sufficiently. The structure reveals a steady growth of the share of intermediate consumption till 1977. In the last years the share of intermediate consumption is slightly declining. For illustration, /10 The costs of private dwellings, which are to be deducted from the NMP have been omitted. According to the computations made by the Czecho- slovak researchers (Bratislava, 1972), these costs amounted to Kcs 880 mill. or less then 0.25 % of GDP in 1970. - 17 - the analogous structure according to the MPS concept (of the Gross Material Output) is given in Tables 15 and 16. The tendencies between shares of productive consumption and NMP in GMO are similar as in the case of SNA aggregates. Comparison with Alternative GDP Estimates in National Currency In Table 17 from Appendix B, the three different GDP estimates (according to primary incomes, final use and activity by origin) are compared and it is suggested to use an average of the three estimates for the conversions to US$. It may be interesting to compare our result with other available estimates of Czechoslovak GDP computed by Western scholars: COMPARISON OF VARIOUS GDP ESTIMATES (1977, mil. Kcs) GDP as x of NMP Type of GDP CSSR concept CMEA concept estimate GDP of NMP of NMP/a Alton/b 565.937 136.4 138.4 Krejci I/c 530.429 127.7 129.6 Krejci II/c 525.656 126.7 128.6 Our average estimate/d 486.719 117.3 119.0 /a Our estimate of NMP. /; T. Alton et al., Eastern Europe: Domestic Final Uses of Gross Product Selected Years 1965, 1970 and 1975-1980. OP-66, 1981, p. 26. /c J. Krejci, National Income and Outlay in Czechoslovakia, Poland and Yugoslavia. The Macmillan Press Ltd., 1982, p. 90 (unfortunately this source became available to us only after our computations were completed). /d See Table 17 in Appendix B. - 18 - As can be seen from the above table, the Alton's estimate of GDP for 1977 in current prices is more than 36% higher than the officially reported NMP. The two alternative estimates of Krejci are higher by 26.7 % and 27.7% respectively. According to our estimate the GDP exceeds the volume of NMP by 17.3% only. If the Czechoslovak NMP is recalculated according to the CMEA standard, the distance of estimated GDP from NMP becomes even wider, approach- ing in the case of Alton's estimate almost 40%. Taking into account that the non-material services in Czechoslovakia--perhaps with the exception of health and education--are notoriously underdeveloped, the share of the non-material services according to Alton and perhaps even according to Krejci seems to be high when compared with Western industrialized countries. If we compare the ratios of GDP to NMP for Czechoslovakia with that given for Hungary in 1976,/11 we obtain an index of 119.2 which is practically identical with our result. It may be interesting to note that the GDP of Austria (1974) is 28 % higher than a computed NMP aggregate (Studies in Methods, Series F. No. 20, Part II, 1981). R. Wintrova even claims that the value of Czechoslovak GDP according to the SNA concept would be only 11% larger than the NMP (Academia, 1979). The GDP aggregates of Krejci are probably higher because some double- counting is likely within the assessment of capital formation. The probable upper bias of the Alton GDP estimate is due mainly to his imputations of value /11 Comparisons of the System of National Accounts and the System of Balances of the National Economy: Conversion of Aggregates of SNA to MPS and vice versa for Selected Countries. Studies in Methods, Series F, No.20 (Part II), U.N., New York, 1981. - 19 - of dwellings and returns to land. On the other hand, his aggregate at so- called adjusted factor costs does not take into account the turnover tax (amounting to 71 bill. of Kcs in 1977 - see SY 1981/159) and the amount of subsidies. Thojugh no accurate estimate of the value of subsidies is available, there seems to be no doubt that the yield of the turnover tax is higher than the amount of subsidies. It follows that the GDP aggregate at factor costs (Alton) ought to be lower than the one at market prices (our estimate). - 20 - II. PRICE FORMATION USED IN CZECHOSLOVAK MPS AGGREGATES The prices in the Czechoslovak national accounts are a mixture of market prices and producer prices. The two systems of prices developed rela- tively independently of each other not only with regard to the change in price levels, but also to the relative changes of prices within each system. Producer Prices The producer prices are formed by the costs of production and a certain amount of profit. Up to 1967 the producer prices were determined on a cost-plus basis (taking as a basis for the rate of profit total unit costs calculated on the branch or product-group level). In 1967 a price reform of producer prices was carried out, introducing the so-called two-channel type of prices. Profit was calculated separately in fixed proportions to wages and to the value of fixed capital and stocks. In 1977, a new reform of producer prices was adopted and the basically applied production price model included a profit rate which was charged proportionally to the value of fixed capital and stocks. In both cases, that means in the 1967 and 1977 price reforms, the overall producer price level was also affected. In 1967 the rate of profit was considerably increased while in 1977 the rate of profit was lowered, but the overall level of producer prices was lowered to a lesser degree. These across-the-board price reforms interrupted the "normal" development of current prlces. e.g., a comparison of the NMP and GDP estimates for 1977 with those for 1976, both at current prices (see Table 17, Appendix B) should not be Interpreted to mean that the level of economic activity in 1977 was lower than the year before. When comparing the NMP data for 1976 at current prices with DEVELROEMB AND SRDUUhRE OF SaECtED 021MENI OF aIUr IN aSO ( IW-DT ) ORCANI7ATION (KcS. xilU., current producer prices) Cam*nsation Profit before (lutput Vterial Costs Depreciation of employees taxes Residual/a 1970 1980 1970 1980 1970 1980 1970 1980 1970 1980 1970 1980 All organizations 698,920 1,196,349 320,274 564,045 28,071 56,646 127,624 186,641 125,447 131,492 97,504 257,525 100.0) 100.0 45.82 47.15 4.02 4.73 18.26 15.60 17.95 10.99 13.95 21.53 of which: in Matertal sphere 680,731 1,124,168 316,207 555,023 26,175 51,866 121,348 174,760 125,027 113,348 91,974 229,171. Z 100.00 100.00 46.45 49.37 3.84 4.61 23.44 15.55 24.15 10.oR 13.51 2n.39 of %ich: IrdLustry 446,671 734,983 240,815 420,441 15,881 30,523 61,942 90,400 79,142 74,262 48,891 119,397 Z 100.00 100.00 53.91 57.20 3.56 4.16 13.87 12.30 17.72 10.10 1r).95 16.24 Agriclture 62,050 109,754 24,929 47,651 3,227 6,349 18,433 25,006 9,484 8,098 5,982 22,560 Z 100.00 100.00 40.18 43.42 5.20 5.87 29.71 22.78 15.28 7.34 9.f64 20.56 in nomaterial sphere 18,189 72,181 4,067 9,022 1,896 4,780 6,276 11,881 420 18,144 5,530 28,354 % 100.00 100.00 22.36 12.50 10.42 6.62 34.50 16.46 2.31 25.14 30.40 39.28 La Ehergy, anyents for nonm terial services, taxes (excludirg turnover tax) and other financial costs, etc. Source: SY 1981/163-166, SY 1971/184 and awn calculations. - 22 - the same data valued at 1977 official constant prices, a price difference of minus 4.2% appears which is due precisely to the new valuation of producers' prices (see SY 1981/142). Some insight into the structure of producer prices may provide the table for Khozraschot (state and cooperative) organizations.12 Retail Trade (Consumer) Prices The retail trade prices, applied to consumption goods in the national balances, are not tied to production costs but are determined by a mix of social preferences and by the demand and supply situation on the market. The difference between the producer price (charged by enterprises) and the retail price (paid by the population for consumer goods) is made up of the trade mark-up and the turnover tax, the rate of which varies greatly, not only by commodity groups but also within each commodity group. In some cases (as in public transport and housing, but also with some cultural goods and services) price subsidies make up the difference between the price charged to the private consumers and the higher producer price. It must be noted that the turnover tax is levied on population purchases of consumption goods only, while intermediate products, investment goods and changes in stock as well as purchases of consumer goods by "social- ist" organizations are priced mainly at producer prices. Producer prices are those charged by production enterprises in industry, procurement prices of agricultural products, prices of construction works, transport rates a.s.o. All these prices have in common that, unlike with consumer goods, no turnover /12 Khozraschot (non-budgetary) organizations have their own financial accounting and are linked to the state budget by profits or losses only. - 23 - tax is levied on them. This applies also to foreign trade prices (actual transaction prices converted into national currency from rouble and dollar values at internal conversion rates); here, however, the prices are formed on the external market, outside the control of the planning authorities. In the national accounts the turnover tax is always accounted for by the branch in which the taxed commodities are produced, notwithstanding the fact that the turnover tax is levied on the retail level and paid by the consumer in the act of purchase from a trade organization. As in fact the bulk of consumer goods is produced by industry - perhaps with the exception of fresh fruits and vegetables - the turnover tax is apportioned in the national accounts, overwhelmingly to industry, giving to this branch a higher propor- tion when priced at final realization prices (including turnover tax) than if the aggregates would be priced at producer prices. The following table shows the branch structure of the NMP in 1967 at various valuations (see Academia, 1979, p.106). However, in the course of attempted economic reforms, the amount of turnover tax was lowered and the difference between producer and market prices diminished somewhat. Thus, for instance, the turnover tax yielded to 50.1 bill. Kcs in 1970 and 85.5 bill. Kcs in 1980 while subsidies (granted to Khozraschot organizations only) amounted to 29.2 bill. Kcs in 1980 (data on subsidies for 1970 not available) - see SY 1981/159, 162. However, this leaves out the amount of subsidies in budgetary organizations (e.g. in personal transport) where subsidies are higher. No comparable data exist for the amount of turnover tax and subsidies by branches. The turnover tax amounted presumably to 80% of the difference between producer and market prices in industry until the price reform of 1967. After an increase of the profit rate in 1967 the share of the turnover tax dropped to 44% only (see Academia, 1979, p. 104). - 24 - STRUCTURE OF CZECHOSLOVAK NMP BY BRANCHES IN 1967 (%)* (Various Types of Prices) Final Wholesale Value Cost Production Branch realization trade (pro- prices/a prices/b prices/c prices ducer) prices Industry 61.6 53.6 46.7 56.6 49.8 Construction 11.2 13.2 11.0 9.3 7.6 Agriculture and Forestry 11.2 13.5 25.4 20.9 19.9 Material Communi- cation and Trans- port 7.0 9.1 8.9 7.0 16.3 Other 9.0 10.6 8.0 6.2 6.4 Total 100.0 100.0 100.0 100.0 100.0 /a Value prices: model prices with profits distributed proportionally to labor costs. /b Cost prices: model prices with profits distributed proportionally to unit costs. /c Production prices: model prices with profits distributed proportionally to fixed assets and inventories. * See Academia (1979), p. 106. Globally, the yield from the turnover tax exceeded the amount of subsidies granted to Khozraschot organizations by 61.5 bill. Kcs in 1980 or by about 5 % of output of these organizations expressed at producer prices (see SY 1981/162-164; the data for budgetary organizations are not available). In assessing the difference between the level of producer and market (retail) prices one may compare the data on personal consumption taken from national accounts statistics (at market prices) with those from input-output tables (at producer prices). In 1977, the personal consumption at market prices amounted - 25 - to 229.7 bill. Kcs (SY 1980/132) but valued at producer prices it amounted to 182.6 bill. Kcs. only (SY 1980/131). The level of retail prices thus exceeded that of producer prices by 25.8% (in 1973 it was by 23.1% - see SY 1976/151- 152; the input-output tables are available for 1973 and 1977 only) made up by the mark up of the trade organizations and the turnover tax. The "final realization prices" of the national accounts are formed by a mix of: (a) market prices (retail prices for consumer goods, with the exception of public consumption and consumption in kind), (b) producer prices (for capital formation and changes of stocks), (c) foreign trade prices. From the structure of NMP follows that its greater part is expressed in market prices (see Table 9, Appendix B). Foreign Trade Prices The Statistical Yearbook is very vague about the prices used for the export and import figures in the national accounts. It only explains that "foreign trade prices used in the actual settlements" are used, but it is nowhere indicated that the data in the foreign trade part of the Statistical Yearbooks are expressed in different foreign trade prices (at official exchange rates of either Western currencies or transferable rouble). On the other hand, the foreign trade data used in the National Income part of the Statistical Yearbooks are expressed in domestic currency by using the official exchange rate adjusted by the special internal conversion coefficients which are not published and are considered to be classified information. The - 26 - foreign trade statistics published in different parts of the yearbook are thus not comparable./13 There is also no explanation that the concept of imports and exports used in the national account statistics differs from the concept used in the foreign trade statistics. The national accounts use an enlarged concept which includes, in addition to merchandise trade, also the value of freight trans- port, communications and middlemen trade. It is a somewhat crude concept of the current account but as the MPS concept excludes the non-productive sphere, the export and import figures do not include incomes and outlays vis-a-vis the outside world derived from interest, royalties, transfer payments and tourist trade (i.e. the trade in the non-material services). As to the character of the foreign trade prices converted to the national currency at internal conversion coefficients, one can roughly compare them with the average level of producer prices. The coefficients have been fixed originally at the level of the so-called re-production costs expressing the number of units of national currency necessary to earn one dollar or one rouble respectively in exports. The procedure was to value the bundle of commodities exported to the West in dollars and those exported to the CMEA in transferable roubles and to compare the sum with approximately the same basket valued in domestic producer prices. This system can be compared with the multiple exchange rate system, where subsidies are granted for some commodi- ties (if the price achieved in foreign trade would be too low) to guarantee to the production enterprise the producer price valid in the domestic economy /13 Moreover, since 1975 foreign trade transactions at domestic prices are not entered any more separately for imports and exports, but only the net balance is given. - 27 - while a system of additional charges payable to the government is introduced for the other commodities (where the use of the conversion coefficient could lead to windfall gains). But, on average, all production enterprises were supposed to achieve from exports (converted at the internal conversion coefficient into domestic currency) the "average" producer price. The different valuation of the national accounts aggregates at a mix of producer prices, retail prices and foreign trade prices affects naturally not only the structure of the NMP but its rate of growth as well (see Academia, 1979, p. 107). - 28 - III. CONVERSION FROM KCS TO US DOLLARS Six different conversion coefficients can be used: (1) the official exchange rate; (2) a purchasing power parity computation elaborated by the Statistical Office of the Federal Republic of Germany (Wiesbaden); (3) our purchasing power parity estimate (computed by P. Havlik); (4) the tourist exchange rate applied officially to Western visitors of Czechoslovakia; (5) a conversion factor derived from comparing imports and exports in domestic currency and foreign trade Kcs (J. Krejci, 1982). (6) the so-called realistic exchange rate between US$, rouble and Kcs/14 In the case of the first PPP (Wiesbaden), the second PPP (Havlik) as well as in the case of tourist exchange rate the exchange relations expressed in DM and AS were converted to US $ using the official exchange rates between US dollar and DM or AS (see Table 19). The results expressed as the quanti- ties of Kcs per 1 US$ are given in Table 19 from Appendix B. The different conversion factors vary between 4.273 Kcs per 1 US $ to 21.067 Kcs per 1 US$ in 1980. The official exchange rate has no real economic meaning but it is used in the official Czechoslovak foreign trade statistics. Formally, it is based on the collection of laws on the monetary reform Nr. 41/1953. Till the early seventies the official exchange rate was kept unchanged, but later on it was frequently adjusted, taking into account the devaluation of the US /14 J. Vanous, The Real Facts About Czechoslovak Foreign Trade. The ACEs Bulletin, Vol. XXIV, No. 1, Spring 1982. - 29 - dollar. Since all foreign commercial transaction with the West are settled in foreign currencies and the values expressed in foreign currencies are converted to foreign exchange Kcs using the official exchange rates, one can vice versa reconvert the export (import) values expressed in foreign exchange Kcs into US $ by using the official exchange rate. Thus the official exchange rate can be safely used to get dollar-values of imports and exports to non- socialist countries officially reported in the Czechoslovak statistical yearbooks in their Foreign Trade Part. The implicit unit prices derived by using this exchange rate have, however, no connection with actual domestic prices applied in the whole economy. To link the domestic price level more J&f!alistically to prices achieved on the foreign markets or to prices charged t by foreign suppliers the internal conversion coefficients reflecting the value of US dollar and transferable rouble were introduced at the end of the sixties (see the Government degree number 189/1966). The internal coefficients were fixed at 27.0 Kcs per 1 US $ and to 18 Kcs per 1 TR-Rouble. The relation in TR//:(-47 respect to the US dollar was almost 4 times higher than the official exchange rate (Kcs 7.20 per 1 US $). The same coefficient was two and a quarter times higher than the official exchange rate of Kcs and the Soviet Rouble (8.00 Kcs per 1 Soviet Rouble). Since the time of its first introduction the internal conversion coefficients were no longer officially reported and they are today considered classified information. However, it is known that they remained unchanged till the end of 1976 and new internal conversion coefficients were established from the beginning of 1977. Apparently these coefficients too were kept stable till 1980, not taking into account the violent fluctuations of exchange rates between the currencies of the market economies. For the - 30 - years 1981 and 1982 new coefficients were fixed;/15 their level was, however, not reported. The exchange rate listed in Table 19 at line 9 (Appendix B) is in essence the average of the internal conversion coefficients with respect to the US$ and the transferable Rouble. Used as weights are the different shares of the trade (with the rouble-area and the non-rouble area) and the exchange rate is computed as the weighted average: Exchange rates Internal conversion Share of the with: coefficient foreign trade (Kcs) (approximately) Non-rouble area 27 0.33 Rouble area 18 0.66 Total 20.8 1.00 The exchange rates applicable for foreign trade (lines 9 and 10 in Table 19) undervaluate, in our opinion, the real exchange relations in com- parison with realistic exchange rates, as only the commodities traded in international trade are here taken into account and not all goods and services produced and domestically used. The point has been argued at length by Marer./16 According to our judgement a realistic exchange-rate should lie somewhere between our calculated purchasing power parity (line 7) and the /15 E. Hlavaty, The control of the foreign exchange economy in Czechoslovakia (in Slovak). Alfa, Bratislava, 1982, p. 84. /16 P. Marer, Background paper prepared for the 1st workshop. - 31 - tourist exchange rate (line 8). The GDP per capita figures in US$ converted with the alternative exchange rates are given in Table 20, Appendix B. The use of various exchange rates also affects the nominal growth rate of the GDP in current prices as well as the real growth rate of GDP in constant Kcs (see Table 21, Appendix B). A volume of GDP per capita of about 4,500 US$ (resp. 3,500 US$ if an adjustment for Czechoslovak inflation is considered) in 1980 seems to be a realistic assessment. After completing the study and assessing its results one finding of great importance for future possible research must be stressed: while the various GDP estimates at national currency oscillate within a range 487-566 bil. Kcs in 1977, the GDP per capita estimates in U.S. dollars fluctuate from 1580 to 5737 U.S. dollars in the same year. The relative difference in GDP estimates at national currency is thus 16.2% while the relative difference of GDP estimates expressed in U.S. dollars amounts to 263.1%! This large fluctuation of dollar estimates is due to the great variations in possible exchange rates. It seems to us that future research should be focused either on more plausible ways of assessing the real purchasing power of CPEs national currencies or into some other method requiring no exchange rate conversions in an estimation procedure (i.e. PIG, etc) since the use pf a particular exchange rate has a decisive effect on the estimate of the dollar value of the GDP. - 32 - IV. ASSESSMENT OF THE REAL GROWTH OF THE CZECHOSLOVAK ECONOMY IN 1970-1980 The Czechoslovak statistical office measures the growth of the NMP by using constant prices fixed to certain base years. In the time period observed constant prices fixed to the year 1967 were used till 1976, and from 1977 up to 1980 prices of 1977 are being applied. The two price levels are supposedly linked by chaining of the respective price indixes (see SY 1981/134). The Czechoslovak economists and statisticians are themselves aware of the fact that the price indices deflate the indicators only to a limited extent./17 Just to illustrate this feature the following table presents selected value, volume and price indexes taken directly or calculated from data in different parts of the Czechoslovak Statistical Yearbook 1981. The paradoxical result-- namely the growth rate of NMP at official constant prices is faster than the growth rate computed from data at current prices, in spite of the fact that some inflation is officially admitted-was achieved mainly by a simple statis- tical procedure: together with the change of price levels in 1976 a branch classification reform was performed. The effects of actual price changes thus cannot be traced at all from official statistical sources. The reasons for the upward bias in aggregates given at official constant prices in the centrally planned economies are well known and a more detailed discussion is not possible within the frame of this study. According to Academia (1979) the probability of an upward bias not reflected in the offical price indices is greater for the non-standard production, especially /17 See Academia (1979), p. 103 and V. Nachtigal, The National Income of Czechoslovakia (in Czech). Research Report 59, EU-CSAV, Prague, 1969, p.92. - 33 - SELECTED VOLUME, VALUE AND PRICE INDICES, 1970-1980 Average rate 1970 1975 1976 1980 of growth 1970-1980 NMP at official constant prices (mil. Kcs)/a 280.807 370.800 384.357 394.076 453.123 (1967 (1977 prices) prices) Official growth of NMP (%) at constant prices/b 100.0 132.0 137.5 158.1 4.7 NMP at current prices (mil. Kcs)/c 312.345 408.399 418.182 480.107 NMP value indices/d 100.0 130.8 133.9 153.7/* 4.4 Official index of producer prices in industry/e 100.0 99.7 99.9 107.5 0.7 Official index of retail prices/f 100.0 100.7 101.6 111.8 1.1 Procurement prices of agricultural products/g 100.0 103.7 105.7 119.4 1.8 /a SY 1981/142 /1 SY 1981/143 /c SY 1981/138 /d own calculation based on 3) /e SY 1981/256 /I SY 1981/257 SY 1981/257 *) The value index is to a small extent influenced by the price reform of 1977. Taking this factors into account the value index for 1980 would be 157.6 and the rate of growth for 1970-1980 4.7%. - 34 - in case of construction and investment goods. But the probability of price increases not sufficiently reflected in the price index is high also with consumer prices, even if to a lesser extent. From such an assessment it can be deduced that the construction of an index of realistic price increases in the field of consumption and application of this index to all the sub- aggregates of the GDP would give us a lower boundary of the probable overall real price development. One approach to assess the actual price development (at least for consumption) is to compare the purchasing power parity between Czechoslovakia and some Western market economy (Austria) at two different points of time under the assumption that, in the Western country, the price development is correctly reflected in the official consumer price index. This procedure was used in order to estimate the actual Czechoslovak development of consumer prices for the period from 1970 to 1980./18 For 1964 the purchasing power parity is based on the results of a Czechoslovak study. As can be seen from the table, the PPP of 1 AS equals 0.5232 Kcs in 1980 while in 1964 it amounted to 0.70 Kcs./19 The individual price indexes for 1980 were calculated on the basis of roughly 130 items at prices taken from official statistics of both countries; in the case of CSSR some quality adjustments were taken into account (analo- /18 The comparison of purchasing power parities between Czechoslovakia and Austria in 1980 is the topic of a separate study of one of the co-authors (Mr. Havlik) of this report. See P. Havlik, A Comparison of Purchasing Power Parity and Consumption Level in Austria and Czechoslovakia. Research report No. 87, May 1983, Vienna Institute for Comparative Economic Studies. /19 Comparable Analysis of Living Standards in Czechoslovakia, West Germany and Austria (in Czech). Research Report No. 37. EU-CSAV, Prague, 1967, p. 32. - 35 - gous to those made in the original Czechoslovak study/19 estimating the PPP for 1964). The resulting PPP in 1980 is thus comparable with PPP calculated for 1964 (1 AS = 0.70 Kcs). Both PPP's were used for estimating the actual growth of consumer prices in CSSR (officially reported consumer price index 80/64 was 124.7% - see SY 1981/257, 1972/486). Knowing the Austrian inflation in the period (227.14%) we estimate actual inflation (consumer price index in CSSR) through the relative change of PPPs: I = I . 1980 = 2.2714 0-52 = 1.69 cs appp 0.70 The estimated consumer price index 1980/1964 for CSSR is thus 169% (about 3.3% per year) instead of the officially reported 124.7% (1.4% per year). Assuming the constant degree of bias in the official reporting of Czechoslovak price indexes (during the whole period 1964-1980) we assigned 47.9% of the total estimated price increment to the period 1970-1980 (offi- cially reported price increment in 1970-1980 is 11.85%, i.e. 47.9% of the total reported price increment in period 1964-1980 - see SY 1972/486, 1981/257). For the period .1980/1970 we obtain the estimated consumer price index: 1.33 (47.9% of the total estimated price increment in 1964-1980). Since the value index of our average estimate of GDP 1980/1970 is 1.58 (Table 17) we get, for the estimated real growth of GDP: 1.58/1.33 = 1.19 for the - 36 - period 1970-1980./20 Decomposing this global growth rate to the individual years (proportionaly to the official growth rates of NMP) we obtain our estimates of real growth as given in line 3 of Table 18 (Appendix B). In PURCHASING POWER PARITIES BETWEEN CSSR AND AUSTRIA (In 1980) Part of Partial PPPs/a consumer basket calculated with: Weights/b Fisher's CSSR Austrian CSSR Austrian index 1 Kcs = x AS weights weights Kcs(mil) AS 1 Kcs=x AS Food & beverages 1.3732 1.7175 119655 2715.70 1.5357 (1 AS = x Kcs) (0.7282) (0.5823) (39.4 %) (26.5 %) (0.6512) Industrial consumer goods 1.2158 1.1915 135470 4975.80 1.2036 (1 AS = x Kcs) (0.8225) (0.8393) (44.6 %) (48.5 %) (0.8308) Services 6.8838 6.9802 48446 2561.96 6.9318 (1 AS = x Kcs) (0.1453) (0.1433) (16.0 %) (25.0 %) (0.1443) Total 2.1824 1.6743 303571 10253.46 1.9116 (1 AS = x Kcs) (0.4582) (0.5973) (100.0 %) (100.0 %) (0.5232) /a For detailed calculations and sensitivity analysis see P. Havlik, A Com- parison of Purchasing Power Parity and Consumption Level in Austria and Czechoslovakia. Research Report No. 87, May 1983, Vienna Institute for Comparative Economic Studies. /b Czechoslovak weights: retail trade turnover (food & beverages and industrial consumer goods), money expenditures of the population in 1980 (services) - see Czechoslovak Statistical Yearbook (SY) 1981, pp. 502- 503, 525. Austrian weights: households' monthly expenditures - survey of 6674 households from 1974 - see Austrian SY 1980, p. 326-327. /20 It is interesting to note that the officially reported volume index on NMP produced is also 1.58 - see p. 33. - 37 - essence, we deflated the annual official growth rates by our estimate of an assumed constant rate of bias (1.029)./21 Further calculations are explained in notes to Table 18 from Appendix B. The line 4 in Table 18 gives the volume of GDP in national currency at estimated real "constant prices". The real growth of GDP in the period 1970-1980 was estimated by 19% with an average yearly growth rate of 1.7%. A second possibility is to measure the real growth rate based on data on final use (lines 5 to 8 in Table 18, Appendix B) giving a slightly lower growth rate (1.2% p.a.). COMPARISON OF DIFFERENT ALTERNATIVE GROWTH MEASURES (Index 1975 = 100) 1970 1975 1976 1977 1978 1979 1980 GNP (GDP) produced Alton/a 84.8 100.0 101.7 105.8 107.6 108.6 110.4 Our estimate/b 87.5 100.0 101.2 102.5 103.7 104.0 104.0 GNP (GDP) used Alton/c 83.7 100.0 103.1 105.3 106.0 105.5 106.8 Our estimate/d 85.8 100.0 100.2 98.9 98.7 97.0 96.4 /a GNP at 1977 adjusted factor cost - see OP-70, p. 9. 71 Calculated from Table 18, line (4), Appendix B. Ic GNP at 1977 adjusted market prices - see OP-72, p. 8. 7Wd Calculated from Table 18, line (8), Appendix B. When comparing the different available alternative growth rates of Czechos- lovak GDP (Alton's vs. our estimates) it can be seen that the difference is negligible in the first half of the period (1970-75) while in the second half /21 Obtained as: official volume index of NMP (1.58) divided by our estimate of GDP real growth (1.19) gives the total bias of the real growth 1,33 for 1970-80. The average annual bias is thus 1.029. - 38 - (1975-80) Alton's growth rates are considerably higher. Thus according to our estimate average annual real growth in the second half of the decade amounted to 1.0 %, Alton's to 2.0 % for GNP (GDP). The differences follow first of all from the various estimation procedures used. While our estimates are in essence deflated official "real" rates of NMP growth (and therefore do not take into account the slightly higher growth rates of the non-material sphere), Alton's estimates are based on estimates of growth rates of the various production and service branches (aggregating the sectoral indexes into an index of GNP with weights reflecting the estimated sectoral contributions in terms of 1977 weights). The higher growth rates of Alton thus may result mainly from: - higher growth rates of non-material sectors, - own estimates of rent and imputed rent from private dwellings, - neglecting the increasing losses of personal transport, - use of a different price level. It is also possible that our assumption about the constant rate of bias in official statistical reporting does not hold and the quality of official price indexes improved after 1977. However, the exact source of differences in alternative growth rates is very difficult to trace. - 39 - APPENDIX A CONVERSION OF MPS DATA TO SNA INDICATORS - 40 - Elements Needed for Conversion of MPS Data to SNA Indicators in Transformation Matrices I-IV (Description of Rows and Columns of the Transformation Matrices) Production 1. Products and Services net of depreciation 2. Depreciation 3. Activities in the material sphere Value added 4. National Income (Net Material Product) 5. Net incomes of private enterprises 6. Travel expenses in the material sphere 7. Other primary incomes of the population 8. Primary incomes of enterprises (profits) Redistribution 9. Employers' contributions to social security 10. Provision of free services for employees 11. Material costs of dwelling facilities 12. Other transfers 13. Non-material services financed from travel expenses 14. Other non-material services 15. Net incomes of private enterprises 16. Travel expenses in the non-material sphere 17. Other wages and salaries Incomes and Outlays 18. Financial assets 19. Enterprises in the material sphere 20. Institutions financed by the State serving the population 21. Dwelling facilities provided by non-material institutions 22. Other non-budgetary institutions serving the population 23. Budgetary institutions serving collective purposes 24. Non-budgetary institutions serving collective purposes 25. Inhabitants living in private houses 26. Other population - 41 - Consumption of National Income 27. Material products financed from travel expenses 28. Material costs of dwelling facilities 29. Other private consumption 30. Consumption of non-mat. institutions serving the population 31. Consumption of non-mat. institutions serving to collective purposes 32. Net fixed capital formation 33. Non-finished construction 34. Accumulation of stocks 35. Losses from abandoned construction 36. Other losses on fixed capital 37. Losses on stocks External transactions 38. Material products and services 39. Direct import and export by population 40. Non-material services and other transactions M x x x x K v x rx Yx i K x t~ y X X IC~~~~~~~~~~ K K~~~~ XXXx XX XXX tI IC~~~~~~~~~~~t x ~ ~ ~ ~~ X x x x IC XX K XX X X X~~~~~~~~~'I Iii IC~~~~~~~~~~~~~~~~~~~~~~~~~e K I~~~~~~~~~~~~~~~~' x K XSXi K i1 x~~~~~~~~~~~ XK X XX Y X KK I K X X XI xi~ew uoaeuiIoISujiL - 43 - GDP Based on MPS Data on Primary Incomes 8 Net Material Product: E n = n i = 5 i,4 4,3 add wages and salaries in the non-material sphere: 24 E n j=20 17,1 add private incomes in the non-material sphere: n15,22 + nl15,24 deduct profits of non-budgetary institutions in the non-material sphere: 22,13 22,14 24,14 9,22 10,22 14,22 n16,22 n17,22 30,22 9,24 10,24 14,24 16,24 17,24 n 31,24 add employers' contributions to the social security in the nonmaterial sphere: 24 E n j=20 9,j deduct travel expenses in enterprises of material sphere: n6,4 deduct payments of productive enterprises for non-material services: nl4,19 - 44 - add depreciations: 31 n + E n 2,3 j=28 2,j deduct costs of provision of free services for employees in productive sphere: n1O,19 deduct losses on stocks; n37,19 The result is equal to the GDP according to the SNA concept. It must be noticed that some transformation items (n9,22; n9,24; n17,22; n17,24) are ommitted in Transformation Matrix II as they vanish during the conversion. In practice, as the detailed itemizing of data was often not possible, the actual transformation procedures used were somewhat adjusted. i x x X x ml xx x x x x xxxxx x xv x xx x x it x f * x XX xxIx Kx x . R i x xT !~~~~~~~~~~~~ x t7 ! x x x x x x ~~~~~x x x ztr x nT I~~~~~~~~~~~~~ x X t x x x I~~~~~ ~~ ~~~~~~ I I| x x * I ~~~~~~~~XIx Y Y I x ~~~~~~x x x x x x x t x a 3x i x x x 1: x x xx x x ! x' I X X' X -X ' XX X X r I~~~~~Eu X3. x x a x x I xvt x t ; x X S u t w T~~~~~~~~~~~~~~u x x Y x w x A x v x x xx ^ ', ri kt ES 41 CC , " i, 11 IT Ir r, r. El r aT Wl 81 t*l Si " I tl Iot TO s t IIxTIIeR uojlem-lo;suPell - 46 - GDP Based on MPS Data on Final Use 38 Net Material Product: E n - n - n = n 1=27 1,j 38,1 2,3 4,3 add households expenditures on non-material services (less expenditures on dwelling services) n14,26 - n2l,14 add value of dwelling services provided by - institutions in non-material sphere: n9,21 + n10,21+ n14,21+ n16,21+ n17,21+ n28,26 - owners of private houses: n14,25 + n29,25 deduct material costs in business travel expenses: n27, 26( = nl,27) deduct material costs of dwelling services provided for the population: n29,25 + n28,26 deduct costs of final consumption in institutions of the non-material sphere: 30,20 30,22 n31,23 n31,24 n29,26 add costs of services provided by institutions financed from State Budget n9,20 + n10,20 + n14,20 + n16,20 + n17,20 + n30,20 + n9,23 n10,23 "14,23 + n16,23 + n17,23 + n31,23 - 47 - add depreciations: n2,3 + n2,28 +n2,29 +n2,30 + n2,31 deduct losses on stocks: n1,37 add balance of exports and imports of non-material services: nl4,40 - n40,14 deduct all transfers to the non-material sphere connected with provision of free services for employees 24 E n j=19 10,j The result is again equal to the Gross Domestic Product according to the SNA concept. When comparing the reconstruction procedure with data needed for transformation, it can be seen that some elements (namely n28,26; n29,25; n30 20; n31,23) were ommitted in Transformation Matrix III as they again vanish during the calculations. x x . Xx X X XX X t X ST X Y YX X X X tt YX XC 'X X X X x tT x x X Y X CZ X~~ fl X X Y b x X X x X x x X x x x x X *t X~~~~ X |~~~~~~~~~~~ x X* x x x x m x xxxt x UxUIt x X X X ~~~~~X X X5 XT X x x x x x Y E o 'Xx X X XXXX X x r x x~~~ ~ ~ ~ ~ 9 t X S x~~~~~~~~~~~~~~~~~~~~~x* X ilK Y x X x x Y X X x r, it it ir hi ti T i . I . : 1i 5 it 3 n VT C 61 rt tt s 951 Sim CO li l L I ' 7 ; T I os III XTlluw uoTILeeaOJSUelL - 49 - GDP Based on NMP Data by Origin 8 Net Material Product: E n = n i=5 i,4 4,3 add costs of services provided by budgetary institutions: n9,20 + n16,20 + n17,20 + n30 20 + n9,23 + n16,23 + n17,23 + n31,23 add costs of dwelling services provided by institutions of the non-material sphere n9,21 + n16 21 + n17,21 + n28,26 deduct material consumption in the non-material sphere (net of depreciation): 1,28 1,30 1,31 deduct payments for non-material services in the material sphere: n14,19 deduct payments for non-material services in the non-material sphere: n14,22 + 14,24 deduct material costs in business travel expenditures nld27 add depreciation in the material sphere: - 50 - deduct payments for non-material services in the material sphere: nl14,19 deduct payments for non-material services in the non-material sphere: nl4,22 + 14,24 deduct material costs in business travel expenditures nl,27 add depreciation in the material sphere: n2,3 deduct transfers to the non-material sphere connected with the provision of free services for employees: n10,19 +n10,22 10,24 deduct losses on stocks: n1,37 The resulting aggregate is equal to the GDP. The reconstruction procedure requires the data on items indicated in Transformation Matrix IV. - 51 - Transformation Matrix Iv 1 3 L I S I I i 01 1 z1s Is 11 tt lo 14 11 'D 14 :; J;. II: ^> 1 } 14 I; IL II' ] 4 RRXvu)rXyxK3K I X * * X wx x x xX * I x '4U S. X C C x~~~~~~~~~~~~~ I X X X, X aX XX ,.X XX X II X Ii IX X XXX X X~~~~~~~~~~~~ tt X ~ ~~X X 11 ~~~~X X X Iii X U XDXX X X 3s X X X 1~~~~~ x X x X X X Lr ,XY b ~X X X X X X X X X xxx X~~~~~~~~~~ X ' X X 31XXX X XX XX 21 X I. . * x IL X X X X X X II X Ua X X X X X~ X 3SXX E; ~~~~~~~X X X X t. X 1 X No I I. X X XX - 52 - Detailed Description of Elementary Flows in Transformation Matrices (based on MPS concept) Individual non-zero elements in transformation matrices have the fol- lowing meaning (element of i-th row and j-th column: i/j): 1/3 Products and material services (net of depreciation) used for production in material sphere 2/3 Depreciation in material sphere 1/27-29 Private consumption of products and material services 2/28 Depreciation from public dwellings 2/29 Depreciation from private dwellings 1/30 Products and material services (net of depreciation) consumed by institutions providing services to population (in non-material sphere) 2/30 Depreciation of institutions providing services to population (in non-material sphere) 1/31 Products and material services (net of depreciation) consumed by institutions serving collective purposes (in non-material sphere) 2/31 Depreciation of institutions serving collective purposes (in non- material sphere) 1/32 Net fixed capital formation 1/33 Increment of non-finished construction 1/34 Increment of stocks 2/32 Negative value of all depreciations 1/35 Abandoned construction 1/36 Other losses on fixed capital 1/37 Losses on stocks - 53 - 1/38 Exports of material products and services 3/1 Products and services in material sphere (Global Material Output) 4/3 Net Material Product 5/4 Net product of private enterprises in material sphere 6/4 Travel expenses of employees in material sphere 7/4 Wages and salaries in material sphere 8/4 Gross profits of enterprises in material sphere 9/19 Employers' contributions to the social security in material sphere 9/20 Employers' contributions to social security in institutions financed from State Budget serving population 9/21 Employers' contributions to social security in institutions providing dwelling facilities 9/22 Employers' contributions to social security in non-budgetary institutions serving population (in non-material sphere) 9/23 Employers' contributions to social security in institutions financed from State Budget serving collective purposes (in non-material sphere) 9/24 Employers' contributions to social security in non-budgetary institutions serving collective purposes (in non-material sphere) 10/19 Provision of free services to employees in enterprises of the material sphere 10/20 Provision of free services to employees in institutions financed from State Budget providing services for the population (in non- material sphere) 10/21 Provision of free services to employees in institutions providing dwelling facilities - 54 - 10/22 Provision of free services to employees in other non-budgetary institutions providing services for the population (in non-material sphere) 10/23 Provision of free services for employees in institutions financed from State Budget serving collective purposes (in non-material sphere) 10/24 Provision of free services for employees in non-budgetary in- stitutions serving collective purposes (in non-material sphere) 11/21 Imputed transfers. from dwelling facilities (material costs of dwelling facilities) 12/19 Transfers of institutions in material sphere 12/20 Transfers of institutions financed from State Budget providing services for population (in non-material sphere) 12/21 Other transfers from dwelling facilities 12/22 Transfers of non-budgetary institutions providing services for the population (in non-material sphere) 12/23 Transfers of institutions financed from State Budget serving collective purposes (in non-material sphere) 12/24 Transfers of non-budgetary institutions serving collective purposes (in non-material sphere) 12/26 Transfers from population 12/39 Consumption of non-residential households 12/40 Other transfers from abroad 14/19 Expenditures of material enterprises on non-material services 14/20 Expenditures on non-material services of institutions financed from State Budget serving the population - 55 - 14/21 Expenditures on non-material services of institutions providing dwelling facilities for the population 14/22 Expenditures on non-material services of non-budgetary institutions from non-material sphere serving the population 14/23 Payments for non-material services of institutions in non-material sphere financed from State Budget 14/24 Payments for non-material services of non-budgetary institutions in non-material sphere serving collective purposes 13/26 Individual payments for non-material services financed from business travel expenses 14/25 Payments of inhabitants living in own houses for non-material services 14/26 Other individual payments 14/40 Exports of non-material services 15/22 Net income of private enterprises from the non-productive sphere serving the population 15/24 Net income of private enterprises from the non-productive sphere serving collective purposes 16/20 Travel expenses of institutions financed from State Budget (in the non-material sphere) providing services for the population 16/21 Travel expenses of institutions providing dwelling facilities 16/22 Travel expenses of non-budgetary institutions (in the non-material sphere) providing services for the population 16/23 Travel expenses of institutions financed from State Budget(in the non-material sphere) serving collective purposes - 56 - 16/24 Travel expenses of non-budgetary institutions (in non-material sphere) serving collective purposes 7/20 Wages and salaries in institutions financed from State Budget providing services for the population 17/21 Wages and salaries in institutions providing dwelling facilities 17/22 Wages and salaries in non-budgetary institutions (in non-material sphere) providing services for the population 17/23 Wages and salaries in institutions financed from State Budget serving collective purposes 17/24 Wages and salaries in non-budgetary institutions (in non-material sphere) serving collective purposes 18/19 Current transfers and saldo of debts of material enterprises to the government 18/20 Current transfers from institutions financed from State Budget (in non-material sphere) to the government 18/21 Current transfers from institutions providing dwelling facilities to the government 18/22 Current transfers from non-budgetary institutions (in non-material sphere) to the government 18/23 Current transfers and saldo of debts of institutions financed from State Budget (in non-material sphere) serving collective purposes to the government 18/24 Current transfers and saldo of debts of non-budgetary institutions (in non-material sphere) serving collective purposes to the government 18/26 Current transfers and saldo of debts of population to the government - 57 - 18/40 Current transfers and saldo of debts from abroad to the government 19/8 Primary incomes of material enterprises 19/12 Transfers to material enterprises 19/18 Transfers to the government and saldo of)credits obtained from enterprises in the material sphere 20/10 Payments to non-material institutions for providing services for employees 20/12 Other transfers to non-material institutions providing services for the population 21/12 Transfers to institutions providing dwelling facilities 22/12 Transfers to other non-budgetary institutions providing services for the population 21/14 Rents from dwellings 22/13 Payments for non-material services paid by employees in business travel expenses 22/14 Other payments for non-material services 20/18 Transfers from government and saldo of credits to institutions financed from State Budget (in non-material sphere) providing services for the population 21/18 Transfers from government to institutions providing dwelling facilities 22/18 Transfers from government and saldo of credits to other nonbudgetary institutions (in non-material sphere) 23/9 Employers' contributions to social security paid to institutions financed from State Budget (in non-material sphere) serving collective purposes - 58 - 23/12 Other transfers to institutions financed from State Budget (in non- material sphere) 24/12 Other transfers to institutions (in non-material sphere) financed from other sources 24/14 Incomes of non-budgetary institutions (in non-material sphere) serving collective purposes from non-material services 23/18 Transfers from government and saldo of credits to institutions financed from State Budget (in non-material sphere) serving collective purposes 24/18 Transfers from government and saldo of credits to non-budgetary institutions (in non-material sphere) serving collective purposes 26/5 Incomes (output) of private enterprises 26/6 Travel expenses of employees in enterprises of the material sphere 26/7 Other primary incomes of population (wages and salaries in the material sphere) 25/12 Costs connected with ownership of private dwellings 26/11 Transfers connected with redistribution of material costs of dwellings to private consumption in institutions providing dwelling facilities 26/12 Other transfers to population 26/15 Net incomes of private enterprises in non-material sphere 26/16 Travel expenses paid by employees in institutioats of non-material sphere 26/17 Other wages and salaries in non-material sphere 26/18 Transfers from government and saldo of credits from population - 59 - 27/26 Expenditures on material products and services financed from business travel expenses 28/26 Material costs of institutions providing dwelling facilities included in private consumption 29/25 Material products and services needed for private dwelling facilities 29/26 Other expenditures on material products and services included in private consumption 30/20 Consumption of institutions financed from State Budget (in non- material sphere) providing services for the population (excluding institutions providing dwelling services) 30/22 Consumption of non-budgetary institutions (in non-material sphere) providing services for the population 31/23 Consumption of institutions financed from State Budget (in non- material sphere) serving collective purposes 31/24 Consumption of non-budgetary institutions (in non-material sphere) serving collective purposes 32/19 Net fixed capital formation in material sphere 33/19 Non-finished construction in material sphere 34/19 Net acummulation of stocks 32/20 Net fixed capital formation in institutions financed from State Budget (in non-materi-a-l sphere) providing services for the population 34/20 Net acummulation of stocks in institutions financed from State Budget (in non-material sphere) providing services for the population - 60 - 32/21 Net fixed capital formation in institutions providing dwelling facilities 34/21 Net acummulation of stocks in institutions providing dwelling facilities 32/22 Net fixed capital formation in other institutions (in non-material sphere) providing services for the population 34/22 Net acummulation of stocks in other institutions (in non-material sphere) providing services for the population 32/23 Net fixed capital formation in institution financed from State Budget (in non-material sphere) serving collective purposes 34/23 Net acummulation of stocks in institutions financed from State Budget (in non-material sphere) serving collective purposes 32/24 Net fixed capital formation in non-budgetary institutions (in non- material sphere) serving collective purposes 34/24 Net acummulation of stocks in non-budgetary institutions (in non- material sphere) serving collective purposes 32/25 Net fixed capital formation by owners of private dwellings 35/19 Losses on abandoned construction in material sphere 36/19 Other losses on fixed capital in material sphere 37/19 Losses on stocks in material sphere 36/20 Losses of institutions financed from State Budget (in non-material sphere) providing services for the population 36/21 Losses of institutions providing dwelling facilities 36/22 Losses of other non-budgetary institutions (in non-material sphere) providing services for the population - 61 - 36/23 Losses of institutions financed from State Budget (in non-material sphere) serving collective purposes 36/24 Losses of non-budgetary institutions (in non-material sphe-re) serving collective purposes 38/1 Imports of goods and material services 39/12 Consumption of residential households abroad 40/12 Other transfers from population to abroad 40/14 Imports of non-material services 40/18 Saldo of foreign debts 40/38 Saldo of imports minus exports in goods and material services 40/39 Saldo of residential households' expenditures abroad and non- residential households' expenditures at home - 63 - APPENDIX B STATISTICAL TABLES WITH CALCULATIONS AND NOTES - 64 - Table 1: ADJUSTMENT OF NET MATERIAL PRODUCT OF CZECHOSWVAKIA TO THE STANDARD MPS (CMEA) CONCEPT (Mil. Kcs) 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 (1) 312.345 327.915 346.333 363.204 390.440 409.970 418.182 414.990 438.015 460.667 480.107 (2) 1.547 1.676 1.671 1.712 1.901 2.011 2.008 2.193 2.465 3.050 4.125 (3) 1.712 1.690 1.672 1.737 1.725 1.858 1.679 1.730 1.677 1.693 1.684 (4) 6.426 6.759 7.093 7.448 8.108 8.483 8.726 9.062 9.436 9.643 10.126 (5) .942 .934 .905 .907 .933 .941 1.094 1.090 1.081 1.051 1.041 (6) .966 1.045 1.143 1.182 1.340 1.499 1.489 1.379 1.453 1.610 1.670 (7) .591 .649 .718 .769 .839 .896 1.014 1.120 1.187 1.241 1.313 (8) 10.637 11.077 11.531 12.043 12.945 13.677 14.002 14.381 14.834 15.238 15.834 (9) -16.694 -17.280 -17.988 -18.787 -20.194 -21.336 -21.843 -22.436 -23.230 -24.215 -25.176 (10) -6.057 -6.203 -6.456 -6.744 -7.249 -7.659 -7.841 -8.055 -8.395 -8.977 -9.342 80 (11) 307.835 323.388 341.547 358.172 385.092 404.322 412.349 409.128 432.084 454.740 474.968 Sources and Methods: (1) Net Material Product (NMP) produced (CSSR methodology). (See SY 1975/162, 1979/130, 1981/138). (2) NMP produced in non-material communications. Taken to be equal to the NMP produced in material communications (see SY 1976/152, 1981/138) since, in CSSR methodology, income from material communications is estimated as 50% of incomes from communications (both material and non-material). See SNTL/ALFA (1969), p.110. (3) Incomes from personal rail transport. (4) Incomes from bus transport aitside towns. Estimated via number of persons transported per mil. km and average price of 1 bus ticket for 10 km - 3 Rcs (see SY 1981/263). (5) Incomes from tramway transport in towns. (6) Incomes from personal airline transport. (7) Incomes from bus transport in towns. All data on personal transport see SY 1974/371-383, 1975/385, 1976/375, 1977/413, 1979/420-434, 1980/425-446, 1981/420-444. (8) Incomes from personal transport: (3)+(4)+(5)+(6)+(7). (9) Cts of per t rt (see SY 1979/516, 1980/529, 1981/529). For 1970-76 estimated as well as for 1980. (10) Net income (loss) of personal transport: (8)+(9). (11) NMP produced (CMEA methodology): (1)+(2)+(10). | Because of subsidized personal transport, NMP according to the CMEA methodology is lower, in spite of the broader concept of material sphere. - 65 - Table 2: GDP DERIVED FRCM DATA ON NMP ACCORDING TO PRIMARY INCOMES (Mil. Kcs) 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 (1) 307.835 323.388 341.547 358.172 385.092 404.322 412.349 409.128 432.084 454.740 474.890 (2) 32.240 33.919 36.332 38.644 40.534 42.482 44.730 47.381 49.246 51.305 53.450 (3) 4.630 4.864 4.723 4.908 4.387 3.910 3.739 3.922 3.836 3.629 4.556 (4) -.801 -.155 -.208 -.185 -.099 -.105 -.760 .131 .293 -.823 -1.913 (5) .700 .700 .800 .900 1.000 1.100 1.200 1.207 1.278 1.261 1.270 (6) -17.673 -18.530 -19.386 -19.975 -21.770 -22.815 -21.148 -18.981 -20.299 -21.185 -22.315 (7) 26.850 30.477 31.881 33.433 35.585 38.608 40.909 40.393 43.752 46.915 50.221 (8) 10.468 10.879 11.302 11.741 12.392 13.103 13.799 13.482 14.700 15.805 15.418 (9) -1.200 -1.300 -1.476 -1.631 -1.754 -1.965 -2.112 -3.179 -3.367 -3.631 -3.927 (10) -5.300 -6.407 -5.791 -5.221 -6.403 -5.936 -5.384 -4.378 -4.457 -4.721 -5.116 (11) 3.145 3.691 3.845 3.328 4.603 4.239 3.854 2.425 3.014 2.953 3.070 (12) 360.894 381.526 403.570 424.115 453.567 476.944 491.177 491.530 520.081 546.248 569.604 (13) 1.172 1.180 1.182 1.184 1.178 1.180 1.191 1.201 1.204 1.201 1.199 Sources and methods: (1) Net Material Product (CMEA concept) - see Table 1. (2) Wages and salaries in the non-material sphere (SY 1975/485, 1977/506, 1978/511, 1979/514, 1980/526, 1981/526). Data for 1970-75 were transformed to the new classification of the NM sphere introduced in 1974. Data for 1980 estimated. (3) Private incomes in the NM sphere. Data not available: estimate based on published data on private incomes in the material sphere (SY 1975/171, 1981/147) and an assumption of the constant ratio between private incomes in material and NM spheres was used (in 1970, the private incomes in the NM sphere were 4663 mil. Rcs - see Rratislava (1972). (4) Profits of non-budgetary organizations in the non-material sphere. Organizations operating on the "Kchozraschot" principle are taken to be non-budgetary organizations. Profits of financial and insurance institutions were excluded (SY 1971/184, 1972/184, 1973/170, 1974/181, 1975/186, 1976/173, 1977/151, 1978/150, 1979/157, 1980/158, 1981/166). (5) Employers' contributions to social security in the NM sphere (SY 1979/516, 1980/529, 1981/529). Data for 1970-76 and 1980 were estimated. (6) Payments of enterprises in the material sphere for non-material services (SY 1971/184, 1972/183, 1973/169, 1974/180, 1975/185, 1976/172, 1977/151, 1978/150, 1979/157, 1980/158, 1981/166). (7) Depreciation in the material sphere (SY 1975/221, 1981/142). Transformed to current prices with the official price index for inveatments (SY 1975/427, 1981/256). (8) Depreciation in the non-material sphere. Data for 1977-1979 (SY 1975/221, 1979/516, 1980/529, 1981/529). Data for 1970-76 and 1980 (estimated based on the value of fixed capital stock in the NM sphere and analogous rate of depreciation as in 1977-79). (9) Provision of free services for employees in enterprises of the material sphere. Data reported as non-investment payments from "funds for social and cultural development" in non-budgetary organizations (SY 1975/184, 1976/171, 1977/147, 1978/146, 1979/153, 1980/154, 1981/162). (10) Total losses (SY 1972/159, 1977/123, 1980/132, 1981/138). (11) Losses on fixed capital (SY 1973/142, 1974/159, 1975/164, 1976/154, 1978/125, 1979/132, 1980/134, 1981/139). (10)-(11) used as an estimate of losses on stocks which must be deducted from NMP. (12) GDP based on data on primary incomes. (13) The ratio of GDP to NMP (12):(l). - 66 - Table 3: DEVELOPMENT OF GDP BY DISTRIBUTIVE SHARES (SNA) (Mil. Kcs and aTmual percentage changes) 1970 1971 1972 1973 1974 1975 1976 1977 1978 197Q 19R8 (1) 173.273 182.374 196.723 206.392 215.393 224.351 235.519 242.490 251.744 260.052 268.752 5.3% 7.9% 4.9% 4.4% 4.2% 5.0% 3.0% 3.8% 3.3% 3.3% (2) 150.304 157.796 163.664 172.548 190.197 200.R81 200.949 195.165 209.885 223.476 235.213 * 5.0% 3.7% 5.4% 10.2% 5.62 .0% -2.92 7.5% 6.5% 5.3X (3) 37.317 41.357 43.183 45.175 47.977 51.712 54.709 53.875 5R.452 62.720 65.639 * 10.8% 4.4Z 4.6% 6.2% 7.8% 5.8% -1.5% 8.5% 7.3% 4.7% (4) 360.894 381.526 403.570 424.115 453.567 476.944 491.177 491.530 520.081 546.24R 569.604 * 5.7% 5.8% 5.1% 6.9% 5.2% 3.0% 1% 5.R2 5.0% 4.3% Sources and methods: (1) Compensation of employees. Obtained as a sum of: primary incomes of population in NMP (SY 1976/160, 1981/147) - private incomes in the material sphere (see Table 2) + employers' contributions to social security (see Table 2 for the NM sphere and SY 1976/184, 1977/148, 1978/148, 1979/155, 1980/156, 1981/164 for the material sphere). (2) Operating surplus and indirect taxes (net). Obtained as a difference between (4) and ((1) + (3)). (3) Depreciation (both material and non-material - see Table 2). (4) GDP derived from data an primary incomes (by distributive shares) (see Table 2). Table 4: STRUCTURE OF GDP BY DISTRIBUTrVE SRARES (SNA)/a 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 (1) .480 .478 .487 .487 .475 .470 .479 .493 .484 .476 .472 (2) .416 .414 .406 .407 .419 .421 .409 .397 .404 .409 .413 (3) .103 .108 .107 .107 .106 .10S .111 .110 .112 .115 .115 (4) 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 /a See Table 3. - 67 - Table 5: MVELPMENT OF NET MAiERIAL PRODUCT BY PRDMAFY INC4ES (MPS) (Mil. Kcs and annual percentage changes) 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 (1) 135.241 140.999 148.805 155.587 160.473 166.015 171.074 177.726 184.055 189.817 196.304 4.3% 5.5% 4.6% 3.1% 3.5% 3.0X 3.9% 3.6% 3.1% 3.4% (2) 172.594 182.389 192.742 202.585 224.619 238.307 241.275 231.402 248.029 264.923 278.586 . 5.7% 5.7X 5.1% 10.9% 6.1% 1.2X -4.1% 7.2% 6.8% 5.2X (3) 307.835 323.388 341.547 358.172 385.092 404.322 412.349 409.128 432.084 454.740 474.890 * 5.1% 5.6% 4.9% 7.5% 5.0% 2.0X -.8% 5.6% 5.2X 4.4% Sources and methods: (1) Primary incomes of population (SY 1976/160, 1981/147). (2) Primsry incocs of enterprises adjusted for losses in personal transport (see Table 1). (Obtained as a difference between NMP and primary incomes of population.) (3) Net Material Product (see Table 1). Table 6: STRDCIURE OF NMP (MPS)/a 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 (1) .439 .436 .436 .434 .417 .411 .415 .434 .426 .417 .413 (2) .561 .564 .564 .566 .583 .589 .585 .566 .574 .583 .587 (3) 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 /a See also Table 5. - 68 - Table 7: GDP BASED ON DATA ON FINAL USE (Mil. Kcs) 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 (1) 307.835 323.388 341.547 358.172 385.092 404.322 412.349 409.128 432.084 454.740 474.890 (2) 3.999 4.092 4.331 4.670 5.026 5.302 5.602 5.733 5.958 6.161 6.338 (3) 1.171 1.183 1.146 1.115 1.142 1.161 1.093 1.104 1.162 1.162 1.157 (4) 1.321 1.327 1.431 1.526 1.673 1.792 1.899 1.944 2.102 2.180 2.486 (5) 1.347 1.444 1.510 1.504 1.582 1.628 1.705 1.826 1.930 1.962 2.036 (6) 7.259 7.544 8.085 8.654 9.345 10.098 11.322 11.685 12.344 13.542 16.230 (7) -3.620 -3.946 -4.112 -4.544 -4.933 -5.091 -5.309 -5.726 -5.820 -5.803 -5.850 (8) -4.382 -4.811 -5.087 -5.373 -5.160 -5.462 -5.625 -6.160 -6.432 -6.668 -6.663 (9) -40.943 -43.000 -45.700 -47.00O -48.646 -51.855 -55.897 -58.350 -60.652 -62.826 -65.078 (10) 194.313 212.632 216.569 237.200 259.185 273.774 290.071 278.301 283.912 292.403 304.182 (11) -87.648 -101.755 -97.150 -109.737 -126.872 -133.876 -141.757 -127.847 -126.555 -128.382 -130.515 (12) -13.291 -15.217 -16.716 -14.849 -15.595 -14.507 -15.689 -17.492 -12.556 -11.564 -11.801 (13) -38.799 -37.582 -46.383 -45.452 -49.486 -52.666 -51.897 -51.817 -55.602 -57.954 -56.098 (14) 37.317 41.357 43.183 45.175 47.977 51.712 54.709 53.875 58.452 62.720 65.63q (15) -5.300 -6.407 -5.791 -5.221 -6.403 -5.936 -5.384 -4.378 -4.457 -4.721 -5.116 (16) 3.145 3.691 3.845 3.328 4.603 4.239 3.854 2.425 3.014 2.953 3.070 (17) -2.800 -3.000 -3.150 -3.300 -3.660 -4.032 -4.100 -5.317 -5.607 -6.008 -6.327 (18) 360.925 380.939 397.559 425.869 454.871 480.604 496.946 488.935 523.278 553.897 588.580 (19) 1.172 1.178 1.164 1.189 1.181 1.189 1.205 1.195 1.211 1.218 1.239 Sources and methods: (1) Net Material Product (see Table 1). (2) Households' expenditures on personal services (50% taken as non-material). (SY 1974/463, 1977/505, 1980/525, 1981/525). (3) Households' expenditures on sport, cultural and entertainment services (SY 1974/463, 1975/484, 1980/525, 1981/525). (4) Households' expenditures on recreational and health services (SY 1974/463, 1975/484, 1980/525, 1981/525). (5) Households' expenditures on miscellaneous services (50% taken as non-material). (SY 1974/463, 1975/484, 1980/525, 1981/525). (2)+(3) + (4)+(5) taken as an estimate of households' expenditures on the non-material services (excluding comnmnal services). (6) Households' expenditures on dwelling and communal services (SY 1974/463, 1975/484, 1980/525, 1981/525). (7) Material costs in husiness travel expenses. Data not available: estimated at 30% of "other incomes" of population (SY 1974/463, 1977/148, 1978/510, 1981/525). (8) Material costs of dwelling services provided for the population (SY 1972/183, 1973/169, 1974/180, 1975/185, 1976/172, 1977/150, 1978/149, 1979/156, 1980/157, 1981/165). (9) Material costs in the non-material sphere (SY 1977/506, 1979/514, 1981/526). Data for 1970-73 and 1980 not available: extrapolated. (10) Total budgetary (State budget and budgets of National Committees) expenditures. (SY 1975/178, 1980/148, 1981/156.) (11) "Productive" budgetary expenditures (SY 1975/178, 1980/148, 1981/156). (12) Incomes of institutions financed from State budget (SY 1980/149, 1981/157). (13) Transfers from State budget to National Committees. (SY 1975/179, 1980/149, 1981/157). (10)-(11)-(12)-(13) used as an estimate of costs of services provided by budgetary institutions less incomes from these services. (14) Depreciation in both material and non-material spheres (see Table 2). (15) Total losses (see Table 2). (16) Losses on fixed capital (see Table 2). (15)-(16) used as an estimate of losses on stocks. (17) All transfers to the non-material sphere connected with the provision of free services for employees of enterprlses in both material and non-material spheres. (Equals to non-investment payments from "funds for social and cultural development". See SY 1977/506, 1978/511, 1981/526 for the non-material sphere and Table 2 for the material sphere.) (18) GDP based on data on final use. (19) The ratio of GDP to NMP:(18):(1). Remark: data on exports-imports of non-material services are omitted as we failed to obtain a reasonable estimate. - 69 - Table 8: DEVEIOPMENT OF GDP BY FINAL USE CATEGORIES (SMA) (Mil. Kcs and annual percentage changes) 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 (1) 182.177 192.914 202.712 216.221 232.681 243.557 250.919 258.156 272.746 284.076 297.285 * 5.9Z 5.1% 6.7% 7.6% 4.7Z 3.0% 2.9% 5.7% 4.2% 4.6Z (2) 51.775 55.078 53.170 63.862 63.572 68.693 76.628 75.828 83.592 88.495 99.441 * 6.4% -3.5Z 20.1% -.5% 8.1% 11.6% -1.0% 10.2% 5.9% 12.4% (3) 121.285 124.724 132.016 142.566 161.797 172.749 178.132 159.639 168.571 176.636 186.704 * 2.81 5.8Z 8.0% 13.5% 6.8% 3.1% -10.4% 5.6% 4.8% 5.7% (4) 5.687 8.224 9.661 3.220 -3.179 -4.395 -8.732 -4.688 -2.176 3.690 5.212 44.6% 17.5% -66.7% -198.7% -38.3% -98.7% +46.3% +53.6% +269.6% 41.2% (5) 360.925 380.939 397.559 425.869 454.871 480.604 496.946 488.935 523.278 553.897 588.580 5.5% 4.4% 7.1% 6.8% 5.7% 3.4% -1.6% 7.0% 5.9% 6.3% Sources and methods: (1) Expenditures on the final use of residential households. Obtained as a sum of private consumption (SY 1975/162, 1977/122, 1981/138 - enlarged for subsidies in personal transport - see Table 1), households' expenditures on dwelling and other non-material services (see Table 7), excluding the material costs of dwelling services provided for the population (see Table 7), material costs in business travel expenses (see Table 7) and the balance of direct households' external transactions (SY 1975/484, 1977/505, 1981/525). (2) Final consumption expenditures of government. Estimated by the costs of services provided by budgetary institutions less incomes from these services (see Table 7) less transfers to the non-material sphere connected with the provision of free services for employees in enterprises of both material and non-material spheres (see Table 7). (3) Gross capital formation. Obtained as a sum of net accumulation of fixed capital and changes in stocks (SY 1975/162, 1977/122, 1981/138), depreciation in both material and non-material spheres (see Table 7) and losses on fixed capital (see Table 2). (4) Balance of exports minus imports. Obtained as a sum of the balance of merchandize trade (SY 1976/152, 1977/123, 1980/132, 1981/138) and the balance of direct households' external transactions (SY 1975/484, 1977/505, 1981/525). The balance of non-material services' external transactions is omitted. (5) Gross Domestic Product (see Table 7). Table 9: STRUCTURE OF GDP BY FINAL USE (SNA)/a 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 (1) .505 .506 .510 .508 .512 .507 .505 .528 .521 .513 .505 (2) .143 .145 .134 .150 .140 .143 .154 .155 .160 .160 .169 (3) .336 .327 .332 .335 .356 .359 .358 .327 .322 .319 .137 (4) .016 .022 .024 .008 -.007 -.009 -.018 -.010 -.004 .007 .009 (5) 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 /a See also Table S. - 70 - Table 10: DEVEIOPMENT OF NMP ACCXORDING TO DATA ON FINAL USE CAT¶ 0RIES (MPS) (Mil. KeS and anrual percentage changes) 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 (1) 174.565 185.960 196.116 209.584 225.126 235.488 241.659 249.294 263.332 273.962 283.515 * 6.5% 5.5% 6.9% 7.4% 4.6% 2.6% 3.2% 5.6% 4.0% 3.5% (2) 40.943 43.000 45.700 47.000 48.646 51.855 55.897 58.350 60.652 62.826 65.078 * 5.0% 6.3% 2.8% 3.5% 6.6% 7.8% 4.4% 3.9% 3.6% 3.6% (3) 80.823 79.676 84.988 94.063 109.217 116.798 119.569 103.339 107.650 111.963 117.933 * -1.4% 6.7% 10.7% 16.1% 6.9% 2.4% -13.6% 4.2% 4.0% 5.3% (4) 296.331 308.636 326.804 350.647 382.989 404.141 417.125 410.983 431.634 448.751 466.526 * 4.2% 5.9% 7.3% 9.2% 5.5% 3.2% -1.5% 5.0% 4.0% 4.0% (5) 5.300 6.407 5.791 5.221 6.403 5.936 5.384 4.378 4.457 4.721 5.116 20.9% -9.6% -9.8% 22.6% -7.3% -9.3% -18.7% 1.8% 5.°% 8.4% (6) 6.204 8.345 8.952 2.304 -4.300 -5.755 -10.160 -6.233 -4.007 1.268 3.248 34.5% 7.3% -74.3% -286.6% -33.8% -76.5% +38.7% +35.7% +131.6% 156.2% (7) 307.835 323.388 341.547 358.172 385.092 404.322 412.349 409.128 432.084 454.740 474.890 5.1% 5.6% 4.9% 7.5% 5.0% 2.0% -.8% 5.6% 5.2% 4.4% Sources and methods: (1) Private consumption (SY 1975/162, 1977/122, 1981/138, adjusted for subsidized personal transport - see Table 1). (2) Other consumption. Estimated by the costs of final consumption in the non-material sphere (see Table 7). (3) Accumulation (net of depreciation) of fixed capital and stocks (material). (SY 1975/162, 1977/122, 1981/138.) (4) Net Material Product used. Sum of (1)+(2)+(3). (5) Total losses (see Table 2). (6) Balance of exports minus imports (material). (SY 1976/152, 1977/123, 1980/132, 1981/138.) (7) Net Material Product produced (see Table 1). - 71 - Table 11: STICCTURLE OF NET MATERIAL PtODUCT (MPS)/a (Il. KCS) 1970 1971 1972 1973 1974 1975 1976-- 1977 1978 1979 1980 (1) .567 .575 .574 .585 .585 .582 .586 .609 .609 .602 .597 (2) .133 .133 .1'34 .131 .126 .128 .136 .143 .140 .138 .137 (3) .263 .246 .249 .263 .284 .289 .290 .253 .249 .246 .248 (4) .963 .954 .957 .979 .995 1.000 1.012 1.005 .999 .987 .982 (5) .017 .020 .017 .015 .017 .015 .013 .011 .010 .010 .011 (6) .020 .026 .026 .006 -.011 -.014 -.025 -.015 -.009 .003 .007 (7) 1.000 1.000 1.000 19000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 /a See Table 10. - 72 - Table 12: GDP DERIVED FROM DATA ON GROSS MATFRIAL 0UWPUT AND NMP BY ORIGIN (Mil. Kcs) 1970 1971 1972 1973 1q74 1975 1976 1977 197R 1979 1980 (1) 307.835 323.388 341.547 358.172 385.092 404.322 412.349 409.12R 432.084 454.740 474.P90 (2) 194.313 212.632 216.569 237.200 259.185 273.774 290.071 278.301 283.912 292.403 304.182 (3) -87.648 -101.755 -97.150 -109.737 -126.872 -133.R76 -141.757 -127.847 -126.555 -128.382 -110.515 (4) -37.655 -41.043 -44.748 -48.764 -53.153 -57.937 -63.151 -70.278 -72.814 -76.499 -80.371 (5) -17.673 -18.530 -19.386 -19.975 -21.770 -22.815 -21.148 -18.981 -20.299 -21.185 -22.315 (6) -11.998 -13.401 -14.272 -14.055 -16.263 -16.834 -17.822 -18.027 -18.719 -1Q.639 -20.601 (7) -3.620 -3.946 -4.11? -4.544 -4.933 -5.091 -5.309 -5.726 -5.820 -5.803 -5.8so (8) 26.850 30.477 31.881 33.433 35.585 38.608 40.qO9 40.393 43.752 46.915 50.221 (9) -2.800 -3.000 -3.150 -3.300 -3.660 -4.032 -4.100 -5.317 -5.607 -6.008 -6.327 (10) -5.300 -6.407 -5.791 -5.221 -6.403 -5.936 -5.384 -4.378 -4.457 -4.721 -5.116 (11) 3.145 3.691 3.845 3.328 4.60i 4.239 3.854 2.425 3.014 2.953 3.070 (12) 365.449 382.106 405.234 426.538 451.411 474.422 488.513 479.693 50A.491 534.774 561.268 (13) 1.187 1.182 1.186 1.191 1.172 1.173 1.185 1.172 1.177 1.176 1.182 Sources and methods: (1) Net Material Product (see Table 1). (2) Total budgetary (State budget and budgets of National Committees) expenditures. (SY 1975/178, 1980/148. 1981/156). (3) "Productive" budgetary expenditures. (SY 1975/178, 1980/148, 1981/156). (2)-(3) used as an estimate of gross output of institutions providing non-aterial services (including dwelling services). (4) Material consumption in the non-material sphere (net of depreciation). (SY 1979/516, 1980/529, 1981/529). For 1970- 76 and 1980 data not available: extrapolated. (5) Payments for non-material services in the material sphere. (SY 1971/184, 1972/183, 1973/169, 1974/180, 1975/1R5, 1976/172, 1977/148, 1978/150, 1979/159, 1980/158, 1981/166). (6) Payments for non-material services in the non-material sphere. (SY 1976/466, 1977/506, 1978/511, 1980/526, 1981/526). Data for 1970-73 and 1980 not available: extrapolated. (7) Material costs of business travels. Data not available: estimated (see Table 7). (8) Depreciation in the productive sphere (see Table 2). (9) Transfers to the non-material sphere connected with the provision of free services for employees (see Table 7). (10) Total losses (see Table 2). (11) Losses on fixed capital (see Table 2). (10)-(11) used as an estimate of losses on stocks. (12) GDP derived from data on Gross Material Output and NMP by origin. (13) The ratio of GDP to NMP. (12):(1). - 73 - Table 13: DEVELQPMNT OF GROSS PRODLET (SNA) (1Xl. Kes and annual percentage changes) 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 (1) 854.403 902.191 957.678 1,012.162 1,079.744 1,146.884 1,192.208 1,236.327 1,300.446 1,347.750' 1,426.084 * 5.6% 6.22 5.7% 6.7% 6.2% 4.02 3.7% 5.2% 3.6% 5.8% (2) 488.954 520.085 552.444 585.624 628.333 672.462 703.695 756.634 791.955 812.976 864.816 * 6.4% 6.22 6.0C 7.3Z 7.02 4.6% 7.52 4.7% 2.72 6.4% (3) 365.449 382.106 405.234 426.538 451.411 474.422 488.513 479.693 508.491 534.774 561.268 * 4.6% 6.1% 5.3Z 5.8% 5.1% 3.0Z -1.8% 6.0% 5.% 5.0% Sources and methods: (1) Gross Product. Obtained as a sun of Gross Material Output (SY 1975/162, 1981/138, adjusted for personal transpDrt and non-osterial cammunications - see Table 1), gross autput of institutions providing the non-material services (see Table 12) less trangfe7rs to the non-mterial sphere connected with the provision of free services by enterprises for employees (see Table 7). (2) Intermediate consumption (net of depreciation). Obtained as a difference between Gross Prodict (1) and GDP (see Table 12). (3) GDP derived fran data on gross output and ?W by origin (see Table 12). Table 14: STRUCTURE OF (ROSS RODUCT (SNA)/a 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 (1) 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 (2) .572 .576 .577 .579 .582 .586 .590 .612 .609 .603 .606 (3) .428 .424 .423 .421 .418 .414 .410 .388 .391 .397 .394 /a See Table 13 - 74 - Table 15: DEVELOPMENT OF GROSS MATERLAL OUTPTIT (MPS) TMil. Rcs and annual percentage changes) 1970 1971 1972 1973 1974 1975 1976 1977 197P 1979 1980 (1) 750.538 794.314 841.409 887.949 951.091 1,011.018 1,047.994 1,091.190 1,14R.696 1,189.737 1,25R.744 * 5.8% 5.9% 5.5% 7.1% 6.3% 3.7% 4.1% 5.3% 3.6h 5.R% (2) 442.703 470.926 499.861 529.827 565.999. 606.h96 635.645 682.062 716.611 734.497 7P3.R54 * 6.4% 6.1% 6.0% 6.82. 7.2% 4.82 7.3X 5.1% 2.6% 6.6! (3) 307.835 323.388 341.547 358.172 385.092 404.322 412.349 409.128 432.0e4 454.740 474.89n * 5.1% 5.6% 4.9% 7.5% 5.0% 2.0% -.8% 5.6% 5.2% 4.4% Sources and methods: (1) Gross Material Output. (SY 1975/162, 1981/138 and adjustments for non-zaterial comunications and personal transport - see Table 1). (2) Productive consumption (material). Obtained as a difference between Gross Material Output (1) and Net Material Product (3). (3) Net Material Product (see Table 1). Table 16: STRUCTURE OF GROSS MATERI.AL OUTIPUT (MPS)/a 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 (1) 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 (2) .590 .593 .594 .597 .595 .600 .607 .625 .624 .61R .623 (3) .410 .407 .406 .403 .405 .400 .393 .375 .376 .382 .377 /a See also Table 15. - 75 - Table 17: SUfMARY RESULTS: NlP AND CDP AT CUQRENT RCS (MIL.) AND ANNUAL PERcENTAIE CIwEU S 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 (1) 312.345 327.915 346.333 363.204 390.440 409.970 418.182 414.990 438.015 460.667 480.107 * 5.0% 5.6% 4.9% 7.5% 5.0% 2.0% -.8% 5.5% 5.2% 4.2% (2) 307.835 323.388 341.547 358.172 385.092 404.322 412.349 409.128 432.084 454.740 474.890 ' * 5.1% 5.6% 4.9% 7.5% 5.0% 2.0% -.8% 5.6% 5.2% 4.42 (3) .986 .986 .986 .986 .986 .986 .986 .986 .986 .987 .989 (4) 360.894 381.526 403.570 424.115 453.567 476.944 491.177 491.530 520.081 546.248 569.604 - 5.7% 5.8% 5.1% 6.9% 5.2% 3.0% .1% 5.8% 5.0% 4.3% (5) 360.925 380.939 397.559 425.869 454.871 480.604 496.946 488.935 523.278 553.897 588.5R0 - 5.5% 4.4% 7.1% 6.8% 5.7% 3.4% -1.6% 7.0X 5.9% 6.3% (6) 365.449 382.106 405.234 426.538 451.411 474.422 488.513 479.693 508.491 534.774 561.268 - 4.6% 6.1% 5.3% 5.8% 5.1% 3.0% -1.8% 6.0% 5.2% 5.0% (7) 362.423 381.524 402.121 425.507 453.283 477.323 492.212 486.719 517.283 544.973 573.151-' 5.3% 5.4% 5.8% 6.5% 5.3% 3.1% -1.1% 6.3% 5.4% 5.2% 1. J;b /. &,) J..S ,17 1./4/ /./n 1- /77 /0173 ).t is 1-/4 /' /511 (8) 1.177 1.180 1.177 1.188 1.177 1.181 1.194 1.190 1.197 1.198 1.207 Sources and methods: (1) Net Material Product, CSSR concept (see Table 1). C a o .S1 (2) Net Material Product, CMEA concept (see Table 1). (3) The ratio of (2):(1). (4) GDP based on data on primary incomes (see Table 2). (5) GDP based on data on final use (see Table 7). (6) GDP based on data on Gross Material Output and NMP by origin (see Table 12). (7) "Average" estimate of GDP: ((4)+(5)+(6))/3. This estimate is used in conversions to US dollars (see Table 20). (8) The ratio of (7):(2). - 76 - Table 18: ESTIMATES OF GDP'S REAL rR(WTH RATES 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1480 (1). 360.894 381.526 403.570 424.115 453.567 476.944 491.177 491.530 520.n81 546.248 569.604 5.77 5.8% 5.1% 6.9% 5.27 3.0% .1% 5.8% 5.0% 4.3% (2) 1.000 1.055 1.057 1.052 1.059 1.062 1.041 1.042 1.041 1.031 1.029 (3) 1.000 1.025 1.027 1.022 1.029 1.032 1.012 1.013 1.012 1.002 1.000 (4) 360.894 369.916 379.904 388.262 399.521 412.306 417.253 422.67R 427.750 428.605 428.605 (5) 360.925 380.939 397.559 425.869 454.871 480.604 496.946 488.935 523.278 553.897 588.580 5.5% 4.4% 7.1% 6.8% 5.7% 3.4% -1.6% 7.0% 5.9% 6.3% (6) 1.000 1.049 1.057 1.073 1.081 1.045 1.031 l.016 1.027 1.011 1.023 (7) 1.000 1.019 1.027 1.043 1.051 1.016 1.nO2 .9R7 .998 .983 QQ4 (8) 360.925 367.783 377.713 393.954 414.046 420.671 421.512 416.032 415.200 408.142 405.693 Sources and methods: (1) GDP based on data on primary incomes, current Kcs (mil). (See Table 2). (2) Official growth rates of Net Material Product (produced). (SY 1981/143.) (3) Estimated real growth rates. Our estimate is based on the asumption of an upward bias in the official growth rates; the bias being constant and proportional to the official reported growth rate. Thel degree of bias we estimated in the following way: we start with comparing the purchasing power parities between Czechoslovakia and Austria in 1964 (1 Austrian shilling - 0.70 Kcs) and in 1980 (1 Austrian shilling - 0.5232 Kcs) - see table in text. The Austrian consumer price index 1980/1964 was 2.2714; officially reported consumer price index in Czechoslovakia was 1.2470 (SY 1972/486, 1981/257). From the relative change of PPP's and Austrian consumer price index In the period we obtained an estimate of "real" Czechoslovak consumer price index for 1964-1980: 1.69. 47.9% of this price increment was ascribed to the period 1970-1980 (proportionally to the officially reported consumer price index) giving an estimated price index for 1980/70:1.33. The value index of GDP 1980/70 (1.58) was deflated by the estimated price index (1.33) and the real growth of GDP is thus: 1.58/1.33 - 1.19 (approximately). This overall real GDP growth rate was decomposed to the individual years proportionally to the official growth rates (2). (4) GDP based on data on primary incomes at constant (1970) prices. (Estimated growth rate indexes (3) applied to the value of GDP in 1970). (5) GDP based on data on final use (see Table 7). (6) Official growth rates of Net Material Product (used). (SY 1981/143.) (7) Estimated real growth rates for GDP based on data on final use. The estimation procedure has the same logic as above by (3). We deflated the official growth rates (6) by our estimate of bias (1.029). (8) GDP based on data on final use at constant (1970) prices. (Estimated growth rates indexes (7) applied to the value of GDP in 1970.) - 77 - Table 19: DIYFERENT EXCHANGE RATES USED FOR CONVERSION OF KCS TO U.S. DOLLARS 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 SJ 8 (1) °11 7.200 7.200 6.610 5.860 5.860 5.580 5.770 5.670 5.430 5.320 5.380 I 4 (2) 25.830 23.660 23.140 19.850 17.130 18.510 16.770 15.130 13.370 12.430 13.810 ,/Ke3 (3) 7;> 1..605 1.528 1.562 1.522 1.577 1.753 1.808 1.706 1.555 1.465 1.347 t/'KeS (4) {f0 .287 .304 .323 .343 .367 .386 .401 .411 .415 .417 .426 4 (5) 3.650 3.480 3.190 2.660 2.590 2.460 2.520 2.320 2.010 1.830 1.820 i/J2 $ (6) P 12.704 11.462 9.876 7.744 7.063 6.375 6.291 5.645 4.845 4.387 4.273 J 5 (7) /p'/9..608 8.108 8.129 8.108 8.067 8.027 7.954 7.856 7.723 7.431 24 (8) 16.092 15.485 14.818 13.041 10.860 10.560 9.274 8.870 8.599 8.403 10.253 (9) 21.600 22.183 20.915 19.043 19.557 19.125 20.310 20.497 20.160 20.285 21.067 (10) - 17.408 12.696 13.616 16.192 20.056 16.744 15.456 16.008 13.376 13.528 13.680 Sources and methods: -~ /(1) Official exchange rate 1 US$ - xKcs - yearly averages (SY 1981/185). (2) Official exchange rate 1 US$ - xAS (Monthly Bulletin of Statistics). (3) Tourist exchange rate 1 Kcs - xAS (Austrian National Bank). (4) Purchasing Power Parity 1 Kcs - xDM (Internationaler Vergleich der Preise fur Lebenshaltung 1980, Statistisches Bundesamt Wiesbaden, Reihe 10/1981). (5) Official exchange rate 1 US$ - xDM (see (4)). (6) Wiesbaden's PPP 1 USS - xXcs ((5):(4)). - (7) Our estimate of PPP 1 Kcs - 1.9116 AS in 1980 (see text) converted to US$ with the official exchange rate (2) and moved to the previous years with our estimate of Czechoslovak consumer price index (1.33 for 1970) (see text). The estimated consumer price index is proportional to the officially reported index of retail prices (SY 1975/497, 1981/297); the average coefficient of bias is again 1.029 (see notes to Table 18). The result is thus PPP of one 1980 US$ in relation to constant (1970) Kcs. (8) Tourist exchange rate 1 US$ - xKcs ((2):(3)). (9) Exchange rate based on the estimated difference between domestic and foreign trade Kcs (1 foreign trade Kcs = 3 domestic Kcs - see J. Krejci, National Income and Outlay in Czechoslovakia, Poland and Yugoslavia. The Macmillan Press Ltd., 1982, p. 57 and also K.Dyba. The change of Czechoslovak terms of trade with capitalist countries and the saldo of Czechoslovak trade balance in 1967-1974 (in Czech), Finance a uver 10/1976, p.675). This exchange rate is thus 3 times the official one (1). (10) Exchange rate 1 US$ - xKcs obtained via the "realistic exchange rate between USS and transferable rouble" (see J. Vanous, The Real Facts about Czechoslovak Foreing Trade. The ACES Bulletin, Vol. XXIV, No. 1, Spring 1982 p.l2), the official exchange rate between Kcs and Soviet rouble (SY 1981/185) and the multlplicators for the non-commercial exchange rates between the transferable and Soviet rouble (see P. Spacek, The Non-commercial payments and exchange rates of the CMEA countries (in Czech), SocialistickA economicka integrace 1/1979, p.21). - 78 - Table 20: GDP PER CAPITA IN CURRENT PRICES AT DIFFERENT EXCHANGE RATES (Current U.S. dollars) Average annual groowth 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 rate (%) 1970 - 1980 (1) 5 3.512 3.682 4.206 4.987 5.267 5.779 5.718 5.711 6.293 6.723 6.95R 7.1 (2) fPtI/)I1.990 2.313 2.815 3.774 4.370 5.059 5.245 5.737 7.054 8.152 8.759 16. l (3)l etjk2.788 3.270 3.420 3.604 3.826 4.017 4.148 4.122 4.425 4.813 5.181 6.4 (4) 1.571 1.712 1.876 2.241 2.842 3.054 3.558 3.651 3.974 4.216 3.651 8.8 (5) 1.171 1.195 1.329 1.535 1.578 1.686 1.625 1.580 1.695 1.763 1.777 4.2 (6) 1.452 2.088 2.042 1.805 1.539 1.926 2.135 2.023 2.555 2.644 2.736 6.5 Sources and methods: (1) "Average" estimate of GDP (see Table 17) converted to U.S.$ with the official exchange rate (Table 19). (2) "Average" estimate of GDP (see Table 17) converted to U.S.S with Wiesbaden PPP (see Table 19). (3) "Average" estimate of GDP (see Table 17) converted to U.S.$ with our estimate of PPP, at 1980 ll.S.S, (see Table 19). (4) "Average" estimate of GDP (see Table 17) converted to U.S.S with tourist exchange rate (see Table 19). (5) "Average" estimate of GDP (see Table 17) converted to U.S.S with domestic/foreign Kcs difference exchange rate (see Table 19).q (6) "Average" estimate of GDP (see Table 17) converted to U.S.S with "realistic" exchange rate between U.S.S - rouble - KRs (see Table 19). -79- Table 21: GDP PER CAPITA IN CONSTANT PRICES AT DIFFERENT EXCHANCE RATES (Current U.S. dollars) Average anrmal grcwth 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 rate (%) 1970 - 1980 (1) 3.497 3.578 3.991 4.581 4.683 5.046 4.908 5.030 5.286 5.381 5.305 4.3 (2) 1.982 2.248 2.671 3.467 3.885 4.417 4.502 5.052 5.925 6.524 6.679 12.9 (3) 2.620 3.171 3.231 3.289 3.372 3.470 3.516 3.579 3.659 3.785 3.874 4.0 (4) 1.565 1.664 1.780 2.058 2.526 2.666 3.054 3.215 3.338 3.374 2.784 5.9 (5) 1.166 1.161 1.261 1.410 1.403 1.472 1.394 1.391 1.424 1.411 1.355 1.5 (6) 1.446 2.029 1.937 1.658 1.368 1.682 1.832 1.781 2.146 2.116 2.086 3.7 Sources and methods: (1) GDP in constant (1970) Kcs (see Table 18, line (4)), converted to US$ with the official excharge rate (Table 19). (2) GDP in constant (1970) Kcs (see Table 18, line (4)), converted to US$ with Vlesbaden PPP (see Table 19). (3) GDP in constant (1970) Kcs (see Table 18, line (4)), converted to US$ with our estimate of PPP, at 1980 US$, (see Table 19). (4) GDP in constant (1970) Kes (see Table 18, line (4)), converted to US$ with tourist excharge rate (see Table 19). (5) GDP in constant (1970) KRs (see Table 18, line (4)), converted to US$ with doistic/foreign Kcs difference exchange rate (see Table 19). (6) GDP in constant (1970) Kcs (see Table 18, line (4)), coriverted to US$ with "realistic" excharge rate between US $ - rouble - Kcs (see Table 19). HG 3881.5 .W57 W67 NO.772 C.3 HAVLIK, PETER. I THE GROSS DOMESTIC PRODUCT OF CZECHOSLOVAKIA, 1970 The World Bank Headquarters European Office Tokyo Office 1818 H Street, N.W. 66, avenue d'lena Kokusai Building Washington, D.C. 20433, U.S.A. 75116 Paris, France 1-1 Marunouchi 3-chome Telephone: (202) 477-1234 Telephone: (1) 723-54.21 Chiyoda-ku, Tokyo 100, Japan Telex: WUI 64145 WORLDBANK Telex: 842-620628 Telephone: (03) 214-5001 RCA 248423 WORLDBK Telex: 781-26838 Cable Address: INTBAFRAD WASHINGTONDC ISSN 0253-2115/ISBN 0-8213-0634-0