Approved for Release: 2019/07/19 C05210421
Figure l
Growth of Industrial Pr0duction,l950—80
Percent
12
l0
T
6
4
2
E Postwar boom
Stable, slowly declining
I Slowdown
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o 1950 U1 L11
60 65 70 75 80
To combine sector indexes into indexes for the branches of industry, we use
a 1972 input-output table for the USSR to derive value-added weights
within the branch.’ The branch indexes are further aggregated into indexes
for industrial materials, machinery, consumer nondurables, and total
industry. The amounts of value added in each branch in 1970 (at factor
cost) serve as the weights.’
Machinery production is treated differently because of the need for indexes
for machinery components. Samples are created for nearly every machin-
ery sector in the input-output table, and estimates of the total value added
for each sector are allocated between producer and consumer durables
1 An input-output table is a data matrix that records for a given year the technological rela-
tionships between the various sectors of an economy. Along the columns, it gives the
structure of inputs of materials, labor, and capital necessary to produce a given volume of
output. Along the rows, it shows how the output of a given sector is distributed among the
various industries and final consumption.
3
Value added is gross output less intermediate inputs consumed. More specifically, value
added includes profits, wages, depreciation, and other payments to the factors of production
plus indirect business taxes and subsidies (as a negative income).
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Approved for Release: 2019/07/19 C05210421