Full text : Study week on the econometric approach to development planning

SEMAINE D'ÉTUDE SUR LE ROLE DE L’ANALYSE ECONOMETRIQUE ETC. 1041

VARIABLES

Gross National Product (domestically
 produced)

Productive investment (total)

Capital transfer from Developed
 to Underdeveloped
Areas . . .

Developed
Areas

+, 7

T 4
Eglv

Underdeveloped
Areas

\

N
vy

14

Growth rate of the domestically
 produced Gross Na

tional Produc!

a)

“
J

The value of these seven variables given (that is, observed
or assigned) for the year 1959 constitutes the empirical basis of
a series of alternative projections of the economic growth of
both groups of countries over the ten year period ending at
taba

DEVELOPED AREAS

The following theoretical relationships are used to derive,
and to solve, the equations describing the growth of the Developed
 Areas:
Savine Function:

I

Li) =4Y,,

, represents the fraction of the GNP allocated to invest:
ment

13) Leontief - pag. 3
            
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