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||Appendix**1:**Definitions of Variables|
|---|---|
|GR6589:|Growth rate of real per capita GDP from 1965 to 1989. Per<br>capita GDP is computed by dividing the GDP figures by the<br>total population. Real GDP (1987 price): BESD IEC Naticnal<br>Account, World Bank; Population: BESD Social Indicators. Data<br>on Jordant GDP current price; GDP deflator: IMF.|
|IY6589:|Real gross domestic investment as a percentage of GDP from<br>1965 to 1989. Source: real GDI and real GDP: BESD IEC National<br>Account|
|HCS65:|.<br>Human capital stock in 1965 proxied by the estimated average<br>yeara of schooling of the total labor force; Sou_ce: Louat,<br>1991.|
|GDP65s:|Log of real GDP per capita in 1965, GDP65 figures from|
||Summers-Heston data set.|
|M3Y65:|<br>Total assets of the financial system as a percentage of GDP in<br>|
||1965, where total financial assets is the arithmetic average|
||of the sum of total liquid liabilities (IFS line 551) at year-<br> <br> <br> <br> <br> <br> <br> <br>|
||end<br>and<br>year-beginning<br>data<br>(M31965<br>is<br>given<br>by<br>(M31964+M31965)/2. The same methodology is applied to all<br>|
||year-end data. GDP in current price: BESD IEC National Account|
|CY65s|Total domestic credit as a percentage of GDP in 1965; total<br>|
||domestic credit includes IMFIFS lines 32an through 32f and 42a|
||<br>through 42e, or lines 52an through 52d where available.|
||Domestic credit is the arithmetic average of the year-end and<br>year-beginning data.|
|r6589:|<br>Real interest rate average from 1965-1989. Real interest rate<br> <br> <br> <br>|
||is<br>given<br>by<br>[((l+nominal<br>rate)/(1+inflation)-1)*100].<br>|
||Sources: Nominal interest rate (period average): IMFIFS and|
||Alan Gelb; inflation on CPI: IMFIFS.<br>|
|CBAPA6589:|Average for the period 1965-89 of central banks' assets to|
||total assets of the financial system. Source: Central bank<br>|
||assets (end of period): IMFIFS lines 12a through 12f, foreign<br>assets are excluded. Total financial assets: IMFIFS line 551.|
|BSRCB6589:|Average for the period 1965-89 of commercial banks' reserve<br>|
||with the central bank to total assets of the financial system.|
||Sources: Commercial bank reserves (end of eriod): IMFIFS line|
||p<br>20; GDP in current price: BESD IEC National Account.|
|DBSRCB:|<br>Change in the ratio of commercial bank reserves with the<br>Central Bank to total assets of the financial sstem Chane|
||y. g<br>is defined as the difference between the average from 1984 to|
||<br>1989 and the average from 1965 to 1970. Sources: Commercial|
||bank reserves (end of period): IMFIFS line 20; GDP in current<br>|
||price: BESD IEC National Account. The same methodclogy is|
||applied to other variables in changes: export ratio, DXY,<br>|
||private sector credit, DCPY, govewrnment credit, DCGY,<br>ii i ii|
||nflaton rate, DINF, human captal stock, DHKS, fnancal<br>depth DM3Y financial intermediation DFI|
|FIY6589:|, , , .<br>Average for the period 1965-89 of financial intermediation to<br>GDP (in %); financial intermediation defined as (M3-M1)/GDP.<br>|
||Sourcess Total financial assets (end of period): INFIFS line<br>|
||551. K2**was**used if data on M3 is not available, IMFIFS lines|
||34 and 35;<br>GDP: BESD IEC National Account; M1 (end of<br>|
|CPY6589|period): IMFIFS line 34.<br>Th ti (i %) f dit t th it t t|
|s|e average rao n o cre o e prvae secor o<br>GDP for the period 1965-89, given by IMFIFS lines 32d, 42d and|
||<br>42e or 52d (end-year data).|
|CGY6589s|<br>**The**averae ratio (in %) of credit to the ublic sector to|
||g p<br>GDP for the period 1965-89, given by IMFIFS lines Z2an through|
||<br>32c, and 42an through 42c, or 52an through 52c where available<br>(ear-end data)|
|BMP6589:|y .<br>Average for the period 1965-89 of the black market exchange|