USSR: Measures of Economic Growth and Development, 1950-80

Approved for Release: 2019/07/19 C05210421
Table C-1 (Continued)
Year (1) (2) (3)
Expenditures in 1955 Prices (billion rubles)
<4)
W W W151 if
<6)
Expenditures Expenditures Index
in 1969 Prices in 1973 Prices (1970= 100)
Collective Farms State Organizations Total (billion rubles) _ (billion rubles) __ W Wflr
1978 46.6 g_
i191.o
1979 :4s.e _ _ 199.2_
1980 50.9 208.6
Sources: Column 1: 1950-55 are estimated by assuming that the
share of machinery and equipment in total kolkhoz investment was
constant. Total kolkhoz investment in machinery and equipment for
1951-55 is derived as total investment in machinery and equipment
(19.8 billion rubles—Narkh0z I969, p. 502) less non-kolkhoz
investment in machinery and equipment (18.3 billion rubles-
Narkhoz I 965, p. 529). Annual data on total kolkhoz investment are
from Kapital 'n0ye stroitel 'stv0 v SSSR, Moscow, Gosstatizdat,
1961, p. 40; and Narkhoz I965, p. 536. The implied share of
machinery and equipment in kolkhoz investment for 1951-55 is 22
percent. This share is assumed to hold for 1950 also. 1956-60 are
first estimated by multiplying the share of machinery and equipment
in total agricultural investment (Kapital'noye str0iteI'stv0, p. 159)
by total kolkhoz investment. These estimates are
with investment in machinery and equipment, the
Central Statistical Administration may not have com-
pletely eliminated inflation from the construction
statistics. Measurement of the real change in con-
struction has proved troublesome in Western econo-
mies as well as in the Soviet Union. In the United
States, price deflators are used based on certain types
of standard construction projects, but it is suspected
that the real growth of investment in construction has
been significantly understated.
Description of the Index. Because of the Soviet
definition of its construction sector, an independent
index of the construction component of investment
can be estimated. The Soviets define the entire output
of the construction sector as capital expenditures.
Therefore, our sector-of-origin index of the output of
the construction sector in constant prices, described in
appendix B, represents the growth of new construction
and other capital outlays plus capital repair of build-
ings and structures. In order to derive the index of
new construction and other capital outlays, we first
119
then adjusted to agree with control totals for 1956-58 and 1959-60.
Kolkhoz investment in machinery and equipment for 1956-58 and
1959-60 are derived from data in Strana soveta za 50 let, Moscow,
Statistika, 1967, pp. 198-199; Narkhoz I969, p. 502; and Narkhoz
I965, p. 529. 1961-65 are calculated as column 3 less column 2.
Column 2: This is from Narkhoz I965, p. 529.
Column 3: 1950-60 are column 1 plus column 2. 1961-69 are from
Narkhoz I969, p. 502.
Columns 4 and 5: These are from Narkhoz 1975, p. 503, and similar
tables in other issues.
Column 6: This was derived by linking the data in columns 3, 4, and
5. Data for 1961-64 and 1966-69 are derived from column 4, and
data for 1950-60 are derived from column 3.
estimate capital repair expenditures on buildings and
structures in current prices (see below) and then
subtract that series from the Soviet published values
on the gross output of the construction sector in
current prices. The result is an estimate of new
construction and other capital outlays in current
prices. Both component series are then deflated by the
implicit price index obtained by comparing our index
of construction output in constant prices with the
Soviet gross output series in current prices. Table C-2
shows the derivation of our estimated series on new
construction and other capital outlays in current
prices and in 1970 prices. Our estimates in 1970
prices are also compared with Narkhoz data in 1969
prices (column 5) and an implicit price index is derived
(column 6). The series in 1970 prices shows slower
growth over the 1961-78 period (4.9 percent per year
versus 5.8 percent). The relationship is not consistent,
however, as the implicit price index declines in several
years.
Approved for Release: 2019/07/19 C05210421