# Calculation of marginal total costs from real source data

The real calculation will be carried out on the basis of the intersectoral balance for the Republic of Belarus for 1996 in the system of national accounts, Table. 6.11., 6.12., 6.13., 6.14., 6.15.

On the basis of the procedure set forth for a conditional example, we calculate the matrices of coefficients of full salary intensity and full capital intensity, Table. 6.16. and 6.17.

The last line of these tables is a control, since the sum of its elements gives the total amount of wages  and fixed assets in the national economy. As a result, we get a matrix of marginal total costs of all factors taken into account,
Table. 6.18.

Analysis of the last matrix shows that the most expensive industry among those considered is agriculture, which is due to the high material intensity of its products.

The least expensive industry is transport. The republic can get great  benefits from the development of transport services and even more so from the arrangement and operation of its part of the West-East transport corridor.

Table 6.11 Resource requirements

Intersectoral balance of the Republic of Belarus for 1996 in the SNA (trillion rubles)

 № IndustryConsumersIndustrySuppliers Intermediate consumption by industry Intermediate consumptionTOTAL Endconsumption Grossaccumulation Import balances-Export Export Import Final product Grossissue 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 Mechanical Engineering and Metalworking 11,9 2,5 0,7 2,0 1,3 0,7 0,1 2,6 21,7 5,5 19,6 8,8 25,9 17,2 33,9 55,6 2 Etc. Industries 13,2 75,5 9,3 12,7 6,3 7,5 0,6 17,3 142,2 58,1 2,3 -17,5 53,2 70,7 42,9 185,1 3 Construction 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,2 21,1 0,7 0,8 0,1 22,0 22,0 4 Agriculture and forestry 0,0 17,0 0,0 33,0 0,0 0,5 0,0 0,7 51,3 24,3 1,7 -3,1 1,5 4,6 23,0 74,3 5 Transport and communications 1,7 12,5 1,2 1,1 0,9 1,2 0,2 1,0 19,9 7,6 0,0 4,8 6,9 2,1 12,4 32,3 6 Sphere of circulation 4,1 21,5 0,1 1,5 0,1 0,5 0,3 0,1 28,2 4,8 0,0 -0,1 0,3 0,4 4,7 32,9 7 Ave. branches of material production 0,1 0,5 0,1 0,2 0,1 0,3 0,0 0,3 1,6 0,6 0,4 0,0 0,1 0,1 1,0 2,6 8 Non-manufacturing sectors 2,5 2,9 0,8 0,3 1,1 1,2 0,0 3,8 12,8 45,1 0,0 -0,7 0,1 0,9 44,3 57,1 9 Total 33,5 132,4 12,2 50,7 9,8 11,9 1,3 25,8 277,7 146,2 45,1 -7,2 88,9 96,1 184,2 461,9

End of Table 6.11

 1 2 3 4 5 6 7 8 9 10 11 10 Remuneration of employees – total 9,3 16,5 7,2 8,6 6,9 6,8 1,1 25,6 82,0 11 Gross profit 8,1 18,1 0,5 3,9 13,1 7,2 0,1 4,9 55,9 12 Gross mixed income 0,4 0,4 0,6 13,9 0,2 3,5 0,0 0,2 19,1 13 Other production taxes 0,9 2,9 0,7 0,6 0,9 0,7 0,0 0,6 7,3 14 Other production subsidies 0,0 0,0 0,0 0,9 0,0 0,0 0,0 0,0 0,9 15 Total value added(in basic prices) 18,7 37,8 8,9 26,1 21,0 18,2 1,3 31,3 163,4 16 Taxes on products 3,4 14,9 1,9 0,5 2,2 3,0 0,1 1,3 6,5 17 Subsidies for products 0,0 0,1 1,0 3,0 0,7 0,2 0,1 1,3 6,5 18 Gross Domestic Product – Total 22,1 52,7 9,8 23,6 22,5 21,0 1,3 31,3 184,2 19 TOTAL RESOURCES 55,6 185,1 22,0 74,3 32,3 32,9 2,6 57,1 461,9 20 Import (including importation) 17,2 70,7 0,1 4,6 2,1 0,4 0,1 0,9 96,1 21 incl. import 9,6 18,9 0,1 1,1 2,0 0,4 0,0 0,7 32,9 22 TOTAL resources (including importation) 72,8 255,8 22,1 78,9 34,4 33,3 2,7 58,0 558,0 23 Release without trade and transport margin and import 51,3 153,2 22,0 72,2 32,3 32,9 2,2 57,1 423,2 24 Average annual number of employees,  thousand people 675,5 1050,6 297,5 710,3 290,8 390,2 56,2 1243,9 4715,0 25 Average annual cost of fixed capital 44,5 100,5 11,8 66,2 50,8 15,1 1,0 162,4 452,3 26 Consumption of fixed capital 2,6 9,0 1,0 3,8 5,0 0,7 0,1 6,2 28,4

Table 6.12 Resource requirements

Matrix of coefficients of direct costs of intermediate product, labor and capital for 1996 (in rubles per 1000 rubles)

 Name of industries INDUSTRY Mechanical Engineering, Metalwork. Etc. industry Construction Agriculture and forestry Transport and communications Sphere of circulation Ave. industry mat. pro-va Industries non-production. Sphere 1 Mechanical Engineering and Metalworking 213,41 13,51 31,19 27,13 40,05 20,52 33,65 44,85 2 Etc. Industries 236,70 408,05 421,20 170,49 194,09 226,64 224,95 302,52 3 Construction 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 4 Agriculture and forestry 0,29 92,09 0,09 444,38 0,02 15,52 0,22 13,09 5 Transport and communications 31,05 67,52 55,56 14,26 27,12 37,17 102,56 17,77 6 Sphere of circulation 74,00 116,15 3,51 19,84 4,35 15,55 113,02 1,61 7 Ave. industry mat. Production 2,64 2,53 6,42 2,12 2,49 9,47 16,85 5,23 8 Non-manufacturing sectors 45,14 15,65 36,88 4,61 35,26 37,84 14,97 66,95 Total 603,22 715,50 554,85 682,83 303,39 362,71 506,22 452,04 Wages 0,17 0,09 0,32 0,11 0,21 0,2 0,41 0,45 Capital intensity 0,8 0,54 0,54 0,89 1,57 0,46 0,38 2,84

Table 6.13 Resource requirements

Matrix of coefficients of total costs of the intermediate product for 1996 (in rubles per 1000 rubles)

 Name of industries INDUSTRY Mechanical Engineering, Metalwork. Etc. industry Construction Agriculture and forestry Transport and communications Sphere of circulation Ave. industry mat. pro-va Industries non-production. Sphere 1 Mechanical Engineering and Metalworking 1303,18 63,76 75,22 87,77 69,91 49,89 73,55 86,34 2 Etc. Industries 709,40 1989,66 917,12 684,00 455,49 533,54 599,20 701,10 3 Construction 0 0 1000,00 0 0 0 0 0 4 Agriculture and forestry 125,49 338,02 157,27 1917,56 78,69 120,21 106,29 144,58 5 Transport and communications 102,20 156,51 132,61 84,67 1066,93 84,34 161,51 78,13 6 Sphere of circulation 185,70 248,16 122,58 127,26 65,97 1086,84 196,44 95,30 7 Ave. industry mat. Production 8,11 9,09 11,32 7,75 5,16 12,76 1021,65 9,28 8 Non-manufacturing sectors 87,07 54,24 69,48 33,67 54,48 59,42 44,59 1095,20 Total by columns 2521,15 2859,44 2485,6 2942,68 1796,63 1947,00 2203,23 2209,93

Table 6.14 Resource requirements

Structure of indicators I and II quadrants of the intersectoral balance

(use of manufactured product) for 1996 (%)

 № Name of industries Resource Usage Final consumption Gross accumulation Import-export balance Export Import Final Products Gross output 1 Mechanical Engineering and Metalworking 7,81 3,79 43,51 -121,98 29,20 17,91 18,42 12,04 2 Etc. industry 51,21 39,76 4,99 244,33 59,86 73,64 23,27 40,07 3 Construction 0,00 0,11 46,85 -9,88 0,87 0,07 11,95 4,76 4 Agriculture and forestry 18,49 16,62 3,82 42,80 1,69 4,76 12,47 16,09 5 Transport and communications 7,15 5,21 0,00 -66,76 7,80 2,23 6,74 6,99 6 Sphere of circulation 10,14 3,28 0,00 0,88 0,37 0,41 2,57 7,12 7 Ave. industry mat. Production 0,59 0,41 0,83 0,17 0,07 0,07 0,52 0,57 8 Industries are not called. Sphere 4,61 30,82 0,00 10,43 0,14 0,91 24,06 12,37 TOTAL 100,00 100,00 100,00 100,00 100,00 100,00 100,00 100,00

Table 6.15 Resource requirements

Sectoral structure of indicators of the III quadrant of the intersectoral balance

(product creation) 1996 (%)

 № Name of industries Material costs Remuneration of employees Gross profit Grossmixed income Grossadded value Taxes on products Subsidies for products Gross domestic. product Average. number of employees 1 Mechanical Engineering and Metalworking 12,08 11,32 14,46 1,95 11,43 12,51 0,47 11,98 14,33 2 Etc. industry 47,68 20,12 32,41 1,93 23,17 54,59 1,96 28,59 22,28 3 Construction 4,40 8,76 0,89 3,11 5,47 6,94 16,03 5,32 6,31 4 Agriculture and forestry 18,27 10,47 6,94 72,75 15,96 1,82 45,91 12,80 15,07 5 Transport and communications 3,53 8,38 23,52 0,83 12,88 7,98 11,43 12,21 6,17 6 Sphere of circulation 4,30 8,34 12,89 18,15 11,14 11,01 3,58 11,38 8,28 7 Ave. industry mat. Production 0,46 1,36 0,18 0,00 0,77 0,49 0,98 0,72 1,19 8 Industries non-production. Sphere 9,30 31,24 8,72 1,26 19,17 4,65 19,64 17,00 26,38 TOTAL 100,00 100,00 100,00 100,00 100,00 100,00 100,00 100,00 100,00

Table 6.16 Resource requirements

Combined total cost ratio matrices

intermediate product and full salary intensity for 1996

 Industry Indicators INDUSTRY 1 2 3 4 5 6 7 8 1 Mechanical Engineering and Metalworking Direct salary intensity coefficient 0,17 1,303 0,64 0,075 0,088 0,07 0,05 0,073 0,086 Line of coefficients of total salary intensity 0,2215 0,01 0,0127 0,01496 0,019 0,008 0,0124 0,0146 2 Etc. Industries Direct salary intensity coefficient 0,09 0,709 1,99 0,917 0,684 0,455 0,533 0,599 0,7 Line of coefficients of total salary intensity 0,0638 0,179 0,082 0,0616 0,0409 0,0478 0,0539 0,063 3 Construction Direct salary intensity coefficient 0,32 0 0 1,0 0 0 0 0 0 Line of coefficients of total salary intensity 0 0 0,32 0 0 0 0 0 4 Agriculture and forestry Direct salary intensity coefficient 0,11 0,125 0,338 0,157 1,917 0,079 0,12 0,106 0,145 Line of coefficients of total salary intensity 0,0137 0,0372 0,0173 0,211 0,0087 0,013 0,0117 0,016 5 Transport and communications Direct salary intensity coefficient 0,21 0,102 0,156 0,133 0,085 1,067 0,084 0,161 0,078 Line of coefficients of total salary intensity 0,0214 0,0328 0,0279 0,0178 0,224 0,0176 0,0338 0,0164 6 Sphere of circulation Direct salary intensity coefficient 0,2 0,186 0,248 0,122 0,127 0,066 1,087 0,196 0,095 Line of coefficients of total salary intensity 0,037 0,0496 0,0244 0,0254 0,0132 0,217 0,0392 0,019
 7 Ave. industry mat. Production Direct salary intensity coefficient 0,42 0,008 0,009 0,011 0,008 0,005 0,013 1,022 0,009 Line of coefficients of total salary intensity 0,0034 0,0038 0,0046 0,0034 0,0021 0,0054 0,429 0,0038 8 Non-production. sphere Direct salary intensity coefficient 0,45 0,087 0,054 0,069 0,034 0,054 0,059 0,044 1,095 Line of coefficients of total salary intensity 0,0391 0,0243 0,031 0,015 0,024 0,0265 0,0198 0,4927 9 Total (full salary intensity by industry) 0,3999 0,3367 0,5199 0,3491 0,3258 0,3353 0,5998 0,6255 10 The final product (see Table. 96.1.) 33,9 42,9 22,0 23,0 12,4 4,7 1,0 44,3 The total cost of labor in all industries (the works of the eponymous elements, pages 9 and 10, in total, give the total amount of wages for the national economy, equal to 82 trillion rubles, Table. 96.1.) 13,56 14,44 11,44 8,03 4,04 1,57 0,6 27,71

Note: 1. The elements of the lines of the coefficients of total salary intensity are obtained as a result of multiplying the coefficients of direct salary intensity by each element of the line of the coefficients of total costs.

2. The elements of line 9 are obtained by summing the coefficients of total salary intensity by industry (0.2215 + 0.0638 + 0.0137 + 0.0214 + 0.037 + 0.0034 + 0.0391 = 0.3999).

Table 6.17 Resource requirements

Combined matrices of total cost coefficients of the intermediate product

and full capital intensity in 1996

 Industries & Performance INDUSTRY 1 2 3 4 5 6 7 8 1 Mechanical Engineering and Metalworking Direct capital intensity ratio 0,8 1,303 0,064 0,075 0,088 0,07 0,05 0,073 0,086 Line of total capital intensity coefficients 1,042 0,051 0,06 0,07 0,06 0,04 0,058 0,0688 2 Etc. Industries Direct capital intensity ratio 0,54 0,709 1,99 0,917 0,684 0,455 0,533 0,599 0,7 Line of total capital intensity coefficients 0,383 1,075 0,495 0,369 0,246 0,288 0,323 0,378 3 Construction Direct capital intensity ratio 0,54 0 0 1,0 0 0 0 0 0 Line of total capital intensity coefficients 0 0 0,54 0 0 0 0 0 4 Agriculture and forestry Direct capital intensity ratio 0,89 0,125 0,338 0,157 1,917 0,079 0,12 0,106 0,145 Line of total capital intensity coefficients 0,1125 0,3 0,14 1,706 0,0703 0,107 0,094 0,129 5 Transport and communications Direct capital intensity ratio 1,57 0,102 0,156 0,133 0,085 1,067 0,084 0,161 0,078 Line of total capital intensity coefficients 0,1601 0,245 0,209 0,133 1,675 0,132 0,253 0,1225 6 Sphere of circulation Direct capital intensity ratio 0,46 0,186 0,248 0,122 0,127 0,066 1,087 0,196 0,095 Line of total capital intensity coefficients 0,0856 0,114 0,0561 0,0584 0,0304 0,5 0,0902 0,0437
 7 Ave. industry mat. Production Direct capital intensity ratio 0,38 0,008 0,009 0,011 0,008 0,005 0,013 1,022 0,009 Line of total capital intensity coefficients 0,003 0,0031 0,0042 0,003 0,002 0,005 0,388 0,003 8 Non-production. sphere Direct capital intensity ratio 2,84 0,087 0,054 0,069 0,034 0,054 0,059 0,044 1,095 Line of total capital intensity coefficients 0,247 0,1534 0,196 0,0966 0,1534 0,1676 0,125 3,11 9 Total (full capital intensity by industry) 2,0317 1,9415 1,7 2,436 2,2371 1,2396 1,3312 3,855 10 The final product (see Table. 96.1.) 33,9 42,9 22 23 12,4 4,7 1 44,3 The total expenditure of capital in the regions (the products of the eponymous elements of lines 9 and 10 in total give the total amount of wages for the national economy, equal to 452 trillion rubles, Table 9 and 10). 96.1.)) 68,87 83,29 37,4 56,03 27,74 5,83 1,3312 170,78

Notes 1 and 2 to Table 96.6. are also valid for Table 96.7., but in application for capital intensity.

Table 6.18 Resource requirements

Total cost matrix of all factors for 1996

 INDUSTRY Mechanical Engineering, Metalwork. Etc. industry Construction Agriculture and forestry Transport and communications Sphere of circulation Ave. industry mat. pro-va Industries non-production. Sphere Total sub-product total cost ratios/rank 2,521–1 2,859–1 2,485–1 2,942–1 1,797–1 1,947–1 2,203–1 2,210–1 3 2 4 1 8 7 6 5 Total coefficients of total salary intensity(labor intensity)/rank 0,4 0,337 0,52 0,349 0,326 0,335 0,6 0,626 4 6 3 5 8 7 2 1 Total coefficients of total costs of intermediate product and labor/rank 1,921 2,196 2,005 2,291 1,123 1,282 1,803 1,836 4 2 3 1 8 7 6 5 Total coefficients of total capital intensity/rank 2,032 1,941 1,7 2,44 2,24 1,24 1,33 3,86 4 5 6 2 3 8 7 1 Total coefficients of total costs of all factors, taking into account the reduction of one-time costs to current ones through the application of En = 0.1 / rank 2,12 2,39 2,175 2,53 1,34 1,41 1,93 2,22 5 2 4 1 8 7 6 3