Advances in Input-Output Analysis: Technology, Planning, and Development

By William Peterson | Go to book overview

where the rate of accumulation is low, the relative weight of services is growing and our index of structural efficiency also increases. International comparisons reveal that countries with the same level of GNP per capita spend more of their net income on services than does Hungary. As a result the same differences can be observed in the structure of capital.

The great improvement between 1979 and 1980, and the continuing, but slower, growth of structural efficiency show the capability of the Hungarian economy for structural changes and for structural adjustment to changes in world market conditions. Despite improving structural efficiency in the early 1980s, the question remains whether the Hungarian economy is able to grow faster and efficiently at the same time. The need to be both more efficient and more dynamic is almost unavoidable, because of the lack of external resources that could finance a less efficient but greater rate of growth. Economic growth should be accelerated because of the cumulating social tensions, due to the virtual stagnation of consumption since 1979, and because of the deteriorating stock of capital.


NOTE
1.
A sector is overvalued if its computed price index remains below 1, that is if the computed price is lower than the actual one, and undervalued if the computed price index is above 1, that is if the actual price is lower than the computed one.

REFERENCES

Brody, A. 1970. Proportions, Prices, and Planning. Amsterdam: North-Holland.

Halpern, L., and G. Molnar. 1985. "Income formulation, accumulation and price trends in Hungary in the 1970s." Acta Oeconomica 35.

-196-

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