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

Approved for Release: 2019/07/19 C05210421
butter, and the index of sugar beets is assumed to
equal the index of state procurements of sugar beets.
The other indexes are estimated from a variety of
sources. The detailed derivation of each index is too
extensive to present here.
Table B-7 shows the computation of the index of value
added in agriculture. This calculation also is based on
the 1972 input-output table. First an index of net
agricultural output is computed in 1972 prices by
multiplying the 1972 value derived from the input-
output table by the index derived by Hughes and
Severin in 1970 prices (JEC, Agriculture, table A-1)
The 1972 value of net agricultural output is computed
as follows:
Billion Rubles
Gross output of agriculture in 114.7
purchasers’ prices
Less: i ’W>_PuLchases from the traile sector 4.6 “ii
Less: Purchases from the transporta- 1.4
tion and communiciations
‘ V i_ sector i Wm _
Purchases from the agriculture 23.9
sector __
Equals: Net agricultural output 84.8
Less:
Similarly, the index of nonagricultural material in-
puts is expressed in 1972 prices by multiplying it by
the 1972 value of such purchases, 18.3 billion rubles.
This value can be derived from the 1972 input-output
table as the sum of all purchases from the nonagricul-
tural sectors. Subtracting the material-input series
from the net output series produces an estimate of
value added in agriculture in 1972 rubles which can
then be converted to index form.
ln the general discussion about the problems of
measuring the real growth of value added, it was
indicated that use of a gross output index may be
preferable to the double deflation method unless the
difference between the annual growth rates of gross
output and the material inputs is 2 percentage points
or more. Table B-8 shows the annual growth rates of
gross output, total material inputs, and value added
for agriculture. It is clear that frequently there is a
large gap between the growth rates; therefore, the
double deflation procedure described here is prefera-
ble for this sector.
91
Table B-8 Annual Percentage Rates ofGrowth
Gross Output, Total Material Purchases, and
Value Added in Agriculture
Year (1) (2) (3) (4)
Gross Total Value Column l
Output Material Added Less
_ _ Inputs _ .__-_C_°!2!""2. .
1951 -4.9 3.2 -8.0 -8.1
B2
1953
4.4 2.9 5.1
6.6 7.8 6.0”
1
1.3
1954 2.8 4.6 2.0 - 1.8
1955
_
12.7 11.57
— 13.3776” 118.2%”
19.56 14} 112 714? 1074” T
1957 1.6
W 1-
— “M771 if
15.53
8.8 1.5 7.2
8.2
1959
1 960
7.9 8.4 0.3
f-_0.3 3.2 _ -2.0 f -3.5 f
1961
1.7
A
0.9’ 2.1 “W070 if
_6.3 5T N
6.9
8 iiiii
V1.1
1962 ~04 54- -32 5.5.7 ..
1963 -15.1 —4.3_ —20.sfl_____Z__— 10.9__
1 964 21.7 4.9 32.1 16.7
1965 5.4
7' Z7 8
1 966
4.7 5.s__W_0.s 1%
_ 6.7 12.4w __ 4.0 ’__—_5.7 __
1967 0 2.9 - 1.6 -2.9
1 967; 3.57
PT
6.3 1.85.3
W" "Wm M
1969 - 1.2 4.6 -4.4 - 5.8
1970
—
11.5 6.77 14.4'7TW*' 4.571
1971 -0.3 2.2 1.7 2.5
1972 -5.0 1.2__ H -8.5" __”___—6._2W_ W
1973
1974
15.5 13.6” M 16.7________g1.9__ Kg
_i2.2 —2.3 -2.2 0.1
1975 —7.3 2.2” -13.3 "-96
1976 8-4 4-K 71-4..- *i-...“3-.1§. if
1977 3.3 3.0 3.5 0.3
1978 .
4-3 5,5: _-_1-5“.7.ji.ii.i_—.7.l.2..~.if
1979 -4.8 0.3 -8.3 -5.1
1980 -5.2 —2.4” —7.3 W:2.s* 7 17
Sources: Column 1: The gross output of agriculture is computed as
the sum of the gross outputs of the livestock and crops sectors. The
gross output of the livestock sector is published in JEC, Agriculture
(table A-1). The gross output of the crops sector is equal to net crops
output (ibid) plus the value of seed and waste (unpublished
estimates).
Column 2: Total material inputs are computed as the sum of non-ag-
ricultural material purchases (table B-7, column 4) and agricultural
material purchases. The latter (unpublished) is calculated as gross
output less net output.
Column 3: This was computed from table B-7, column 6.
Column 4: This is column 1 less column 2.
Approved for Release: 2019/07/19 C05210421