World Development Report 1984

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