Social Scientist. v 9, no. 100 (Nov 1980) p. 56.


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56 SOCIAL SCIENTIST

niics and statistics, Madhya Pradcsh government. The available estimates of SDP are in three series, both at current and constant prices. The first one, called the conventional series, is worked out on the basis of 1952-53 prices. The second, known as the revised series, takes 1960-61 prices as the base and is related to the period 1960-61 to 1976-77. These series were revised on the basis of methodology recommended by the working group on state income set up by the Central Statitical Organization (CSO). The third series is based on 1970-71 prices and has been built recently for the years 1970-71 to 1977-78, on account of availability of fresh data for different sectors of the state economy, particularly for the manufacturing (unorganized) sector of the economy. In the present study, the second series has been taken because of the relatively longer period covered, 1960-61 to 1976-77. The new series with 1970-71 as the base, which presents data for only eight years, may nor reveal the correct trend. Bat wherever desirable, the data of new series have been juxtaposed with previous series for comparison.

The SDP in the primary sector of the state economy has been taken to be the sectoral income of agriculture and the residual income has been referred to as income of the non-agricultural sector.

The constant price share of a sector may be taken as what the share would have been if the terms of trade had not changed, while the share of a sector at current prices may be interpreted as what the actual share of that sector was in the SDP. The differences between current and constant prices should be considered as a shift in output gain via the movement of terms of trade* Income transfer from one sector to another has been taken to be the difference between the current price income and constant price income of the two sectors due to a shift in output gain via the movement of terms of trade. Had the ratio of incomes from agricultural and non-agricultural sectors at current prices been the same as the ratio between the two at constant prices, the terms of trade would have remained unchanged. The excess of increase in income at current prices over that at constant prices in a sector over that of another sector, may be taken to be the measurement of transfer of income to that sector via the movement of terms of trade. To know the extent of difference between constant and current price shares of a sector in SDP, the ratios of share of the two sectors at current to constant prices are computed. The product contribution of the agricultural sector to total growth of SDP is computed by using the following equation:



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