1046 PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 28
the Developed and Underdeveloped Areas might be affected
by changes in the fraction of the Gross National Product of the
first transferred for investment purposes into the second area
and also changes in the distribution of the GNP — in both
groups of countries — between current consumption and pro-
luctive investment.
The growth functions (4) and (9) are used to project the
GNP of the Developed and the Underdeveloped Areas over a
ten year period, 1959-1969.
The structural coefficients entering into these equations
depend — see (10) — on the base year magnitude of the GNP’s,
of the productive investments in both Areas and also on their
respective long-run growth rates in the base year.
Each table is based on a different combination of the estim-
ated 1959 growth rates of both countries and of the estimated
amount of domestically financed investment absorbed by the
Underdeveloped Areas in that year. The estimates of the 1959
GNP’s of both Areas and of the amount of gross investment
absorbed in that year by the Developed countries remain the
same through all the computation.
The first column of figures in each table presents one par-
ticular estimate of the base year state of both groups of coun-
tries and also the levels of their respective GNP’s « ten years
later », projected from 1959 to 1969. This projection is made
on the assumption that the domestic saving ratios in both Areas
retain their base year magnitudes and that the economically
more advanced countries continue, throughout the ten year
period in question, to transfer to the less advanced the same
percentage (h) of their annual GNP as they did in 1950.
The three other columns show how hypothetically postulated
changes in original allocation of the GNP’s of both areas — if
introduced in the base year and then maintained over the ten
years covered by our projections — would have affected the
levels of their respective GNP’s « ten years later », i.e., in
1969. The corresponding average annual growth rates over
the period 1959-10609 are entered below
13] Leontief - pag. 8
