A note on methodologies used in a comparison of purchasing power parities and real economic aggregates in fifteen African countries

Article type: Research Article

Authors: Mouyelo-Katoula, Michel¹ | Munnsad, Kantilal²

Note: [1] Michel Mouyelo-Katoula, a national of Congo (People's Republic) is a statistician economist working since 1983 in the Statistical Office of the European Communities as an expert on the International Comparison Project. From 1980 to 1983 he worked as expert on national accounts in the Union Douanière et Economique de l'Afrique Centrale in Bangui (Central African Republic). Before that he was the Director of National Accounts and Economic Studies in the National Centre of Statistics in Brazzaville (Congo). He holds a diploma of engineer in statistics and economics from the European Centre of Statistical Training in Paris and a postgraduate diploma in mathematics from the University of Paris VII.

Note: [2] Kantital Munnsad is a statistician on secondment by the Kenya Government to the Statistical Office of the European Communities. Before his joining the SOEC, he was in charge of the National Accounts and Public Finance section of the Central Bureau of Statistics in Nairobi. Mr Munnsad holds the Part III.A of the Institute of Statisticians, London and has a postgraduate diploma in Statistics and National Accounting from the Institute of Social Studies, The Hague.

Abstract: International comparison of national income aggregates are of importance and much interest at the world level. Comparability is, however, influenced by the extent to which the national accounting practices conform to international standards. But a more fundamental problem for meaningful comparison evolves from the basis on which national value aggregates are brought to comparable units. Traditionally this has been done through the use of market currency exchange rates to convert the national product and its aggregates into some common currency. These, however, do not give meaningful comparisons. The problems are even greater when market exchange rates fluctuate freely and frequently. In order to overcome these problems the International Comparison project has addressed itself to the development and implementation of techniques for achieving international comparability of the real quantity of GDP and its aggregates. The basis for this conversion has been through the use of purchasing power parities. This paper outlines the methodology used for the African Comparisons of Phase IV for the reference year 1980, which was coordinated by the Statistical Office of the European Communities.

DOI: 10.3233/SJU-1985-3304

Journal: Statistical Journal of the United Nations Economic Commission for Europe, vol. 3, no. 3, pp. 289-305, 1985