Gross National Product, Canada, 1870-1926

Gross National Product, Canada, 1870-1926: The Derivation of the Estimates

M.C. URQUHART
A.G. Green
Thomas Rymes
Marion Steele
A.M. Sinclair
D.M. McDougall
R.M. Mclnnis
Copyright Date: 1993
Pages: 736
https://www.jstor.org/stable/j.ctt80qbv
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  • Book Info
    Gross National Product, Canada, 1870-1926
    Book Description:

    This book, prepared by M.C. Urquhart, includes shapters on specific sectors of the economy by Alan G. Green, Thomas K. Rymes, Alastair Sinclair, and Marion Steele, and contributions by D.M. McDougall and R.M. McInnis. Gross National Product, Canada, 1870-1926: The Derivation of the Estimates will be an essential reference tool for further investigation into the new basic estimates, qualitative economic history, and Canadian Econometrics.

    eISBN: 978-0-7735-6363-6
    Subjects: Economics

Table of Contents

  1. Front Matter
    (pp. i-iv)
  2. Table of Contents
    (pp. v-vi)
  3. Preface
    (pp. vii-x)
    M.C. Urquhart
  4. Chapter 1. The Project: Basic Methods and Sources; Basic Tables
    (pp. 1-46)
    M.C. URQUHART

    This volume contains new estimates of Canada’s gross national product and related measures for the years 1870 to 1926 and detailed descriptions of how these estimates were prepared. The final estimates themselves have appeared already in Stanley L. Engerman and Robert E. Gallman,Long-Term Factors in American Economic Growth, 1986, University of Chicago Press, Volume 51 in the National Bureau of Economic Research, Conference on Research in Income and Wealth Series under the title “New Estimates of Gross National Product, Canada, 1870-1926: Some Implications for Canadian Development” by M.C. Urquhart; the detailed descriptions of the way of preparing the estimates...

  5. Chapter 2. Agriculture
    (pp. 47-176)
    M.C. URQUHART

    The ultimate objective is to make an estimate of income originating in Canadian agriculture regardless of who receives this income. Thus it includes rent paid to nonresident owners of farms, interest paid to nonfarm holders of farm mortgages, and wages paid to hired farm labour, as well as all income from farm operations accruing from farm operations in Canada to the farmers themselves. Conversely, it does not include income accruing to Canadian farmers from sources outside of the farm sector of Canada, such as property income from nonfarm property or labour income received by farmers for work they have done...

  6. Chapter 3. Non-Agricultural Primary Industries
    (pp. 177-235)
    M.C. URQUHART

    The general method of calculating income produced in non-farm production of forest products and in farm production can be presented in terms of the steps taken in arriving at the income data.

    The first step was to derive estimates of the physical production of various forest products in total and the division of the totals, in every case, between farm and non-farm production. The categories of production, each estimated separately were (i) logs and bolts for sawmill and shingle mill use, (ii) pulpwood, (iii) railway ties, (iv) squared timber exports, (v) firewood, (vi) all other products as a group.

    That...

  7. Chapter 4. Manufacturing
    (pp. 236-408)
    M.C. URQUHART

    A substantial statement on the general basis of the census of manufactures data is given in the published paper “New Estimates of Gross National Product, Canada, 1870-1926: Some Implications for Canadian Development” in Stanley L. Engerman and Robert E. Gallman,Long-Term Factors in American Economic Growth(published by the University of Chicago Press, 1986) which is volume 51 in the series of the Conference on Research in Income and Wealth sponsored by the National Bureau of Economic Research (NBER). That statement is repeated here and I carry on from it. The NBER text now follows.

    The estimates for the manufacturing...

  8. Chapter 5. Construction
    (pp. 409-421)
    M.C. URQUHART

    Income produced in the construction industry was obtained in two steps. First, an estimate was prepared of total capital formation in building and engineering construction. Second, gross domestic product was obtained by use of estimates of the ratio of gross domestic product in construction to total gross capital formation in construction. These steps are described in turn.

    The basic sources for these data, exclusive of residential construction, were Statcan,Fixed Capital Flowsand Stocks 1926-1978; DBS, Fixed Capital Flows and Stocks in Manufacturing 1926-1960; and, more importantly, detail of the Statcan estimates, not published in the original, that were obtained...

  9. Chapter 6. Transportation and Public Utilities
    (pp. 422-468)
    ALAN GREEN

    This section outlines, in detail, the estimation procedures used to measure gross domestic product (GDP) and its components for the following industries: steam railways and railway express; electric railways; water transport; telephone and telegraph. The final series (gross domestic product) is the sum of wages and salaries paid; interest paid; dividends disbursed and gross savings. Only the last series needs some explanation. Gross savings (which in this case is gross of depreciation allowance) is the residual amount remaining after taxes, interest and dividend payments have been deducted from net operating revenue.

    Two factors dictated the allocation of GDP into the...

  10. Chapter 7. Finance, Insurance, and Real Estate
    (pp. 469-525)
    THOMAS K. RYMES

    The GDPffor this industry becomes very small before 1890 and the data scarce. Therefore the estimates are made in detail only for 1891 to 1926. The estimates are extrapolated from 1891 1870 on the basis of a few financial series as will be explained later.

    Published official Statistics Canada estimates of gross domestic product at factor cost for the Finance, Insurance and Real Estate Industry appear in Statistics Canada,National Income and Expenditure Accounts, 1926-1974,Volume I(hereafter called the Orange Book). For the years 1926-1930, the estimates are those given in the entry (a) of each category in...

  11. Chapter 8. Residential Rents and Residential Construction
    (pp. 526-598)
    MARION STEELE

    This chapter has two distinct parts, related to one another by both dealing with residential housing. Residential rents measure the contribution of residential structures to gross domestic product. Residential construction is a component of gross national expenditure. Residential rents are presented first, followed by residential construction. In what follows all references by name are elaborated in the bibliography.

    Estimates of residential rent in Canada 1871-1925 currently do not exist, except for those of Firestone (Canada’s Economic Development 1867-1953, (1958)) for decade-ending years. In this note we present and describe new annual estimates for 1871-1930. The fundamentals of our estimation procedure...

  12. Chapter 9. Gross Domestic Product and Gross Domestic Expenditure on Goods and Services, Government and Education
    (pp. 599-656)
    M.C. URQUHART

    The material of this chapter is presented separately for 5 individual components as follows: government of Canada; provincial government; municipal government; public education; universities. They are dealt with in order.

    The estimates for federal government wages and salaries, gross domestic product and expenditures on goods and services cover all ordinary activities of government but do not include operations of the public utility kind: they do not include operations of government-owned railway or telecommunication systems; they do include the full activities of the post office and of canals.

    Six years of the period were, in effect, base years, namely, 1870, 1880,...

  13. Chapter 10. Wholesale and Retail Trade; Community, Business and personal Services
    (pp. 657-684)
    M.C. URQUHART

    These two service groups are handled together since common elements are involved in their estimation. Entries for gross domestic product in these groups are given in the tables only for decennial census years and for 1926; estimates for inter-census years and for 1921 to 1925 enter the aggregate national gross domestic product by the procedure of calculating the ratio of the aggregate gross domestic product to gross domestic product less these two groups for census years and 1926, interpolating these ratios linearly between census years and to 1926, and multiplying the gross domestic product excluding these two groups for inter-census...

  14. Chapter 11. Balance of International Payments, 1870–1925
    (pp. 685-688)
    A.M. SINCLAIR

    The balance of payments estimates for .1870-1925 are based on much previous research in the area, especially the work by Viner, Knox and Hartland relating to various current account items.¹ New estimates have been made of capital inflows plus related outflows of interest and dividend payments. These new estimates are based on a variety of secondary sources that reported on contemporary financial flows, including theInvestors Monthly Manual, the Economist, the Statist and theCanadian Gazettefor details on capital inflows and on these sources plus variousPoor’sandMoody’sManuals for direct investment estimates and related interest dividend outflows....

  15. Chapter 12. Miscellaneous Items: Royalties; Indirect Taxes; Gross Capital Formation
    (pp. 689-714)
    M.C. URQUHART

    Provincial governments, in particular, and the Federal Government, to a lesser extent, received considerable amounts of revenue from natural resources. These revenues are commonly called royalties and that is the term used here for all such revenue. As these royalties comprise rents for the use of resources in which the relevant government may have some rights they are a part of income produced within an economy. At the same time, they have been charged, ordinarily, as an expense by the business using the resources and consequently are not reflected in the income attributable to the industries using the resources. Hence,...