World Development Report 1984
World Development Report 1984
World Development Report 1984
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Technical notes<br />
This edition of the <strong>World</strong> <strong>Development</strong> Indicators which the conversion of GNP proceeds in the folprovides<br />
economic indicators for periods of years lowing manner. The first step is to convert the<br />
and social indicators for selected years in a form GNP series in constant market prices and national<br />
suitable for comparing economies and groups of currency units to one measured in constant avereconomies.<br />
The statistics and measures have been age 1980-82 prices. This is done by multiplying the<br />
carefully chosen to give a comprehensive picture original constant price series by the weightedof<br />
development. Considerable effort has been average domestic GNP deflator for the base period<br />
made to standardize the data; nevertheless, statis- (that is, by the ratio of total GNP in current prices<br />
tical methods, coverage, practices, and definitions to total GNP in constant prices for the 1980-82<br />
differ widely. In addition, the statistical systems in period). The second step is to convert the series<br />
many developing economies still are weak, and measured in constant average 1980-82 prices in<br />
this affects the availability and reliability of the national currency to one in US dollars by dividing<br />
data. Readers are urged to take these limitations that series by the weighted-average exchange rate<br />
into account in interpreting the indicators, particu- for the base period. The weighted-average<br />
larly when making comparisons across economies. exchange rate is the ratio of the sum of GNP in<br />
All growth rates shown are in constant prices current prices to the sum of the GNP divided by<br />
and, unless otherwise noted, have been computed the annual average exchange rate in national curby<br />
using the least-squares method. The least- rency per US dollar for 1980, 1981, and 1982. The<br />
squares growth rate, r, is estimated by fitting a third step is to convert the series measured in conleast-squares<br />
linear trend line to the logarithmic stant average 1980-82 US dollars to one measured<br />
annual values of the variable in the relevant period in current US dollars by multiplying that series by<br />
using the logarithmic form: Log X, = a + bt + e,, the implicit US GNP deflator for 1980-82. This prowhere<br />
X, is the variable, a is the intercept, b is the cedure was followed for most economies.<br />
slope coefficient, t is time, and e, is the error term. The GNP per capita figures were obtained by<br />
Then r is equal to lantilog b] - 1, the least-squares dividing GNP at market prices in US dollars by the<br />
estimate of the growth rate. population in mid-1982. The use of the three-year<br />
base period is intended to smooth the impact of<br />
Table 1. Basic indicators fluctuations in prices and exchange rates. As the<br />
base period is changed every year, the per capita<br />
The estimates of population for mid-1982 are pri- estimates presented in the various editions of the<br />
marily based on data from the UN Population Divi- <strong>World</strong> <strong>Development</strong> Indicators are not comparasion.<br />
In many cases the data take into account the ble.<br />
results of recent population censuses. The data on Because of problems associated with the availarea<br />
are from the computer tape for the FAO Pro- ability of data and the determination of exchange.<br />
duction Yearbook 1982. rates, information on GNP per capita is shown<br />
Gross national product (GNP) measures the total only for East European nonmarket economies that<br />
domestic and foreign output claimed by residents. are members of the <strong>World</strong> Bank. The <strong>World</strong> Bank<br />
It comprises gross domestic product (see the note has a research project under way to estimate GNP<br />
for Table 2) and factor incomes (such as investment per capita for nonmarket economies that are not<br />
income, labor income, and workers' remittances) members. But until a broadly acceptable method is<br />
accruing to residents from abroad, less the income prepared, figures will not be shown for the GNP<br />
earned in the domestic economy accruing to per- per capita of such economies.<br />
sons abroad. It is calculated without making For Romania the GNP per capita figure has been<br />
deductions for depreciation. derived, following the <strong>World</strong> Bank Atlas method, by<br />
The GNP per capita figures were calculated using adjusted official Romanian national accounts<br />
according to the <strong>World</strong> Bank Atlas method, under data and converting them into US dollars at the<br />
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