Stratification of the EU/OECD and CIS Economies Based on 2017 Purchasing Power Parities

Abstract—

The article describes the computations of purchasing power parities and proposes to use the moving linear segment procedure in order to assess the stratification of the aggregate of the EU/OECD–CIS economies. The results of calculations on PPP-based identification of low-, middle- and high-income groups are presented. The trend of several macroeconomic indicators for changing with an increase in per capita GDP is shown to be shaped similarly to the logistic curve. According to the results, the Russian economy belongs to the middle income group.

This is a preview of subscription content, access via your institution.

Fig. 1.
Fig. 2.
Fig. 3.
Fig. 4.
Fig. 5.

REFERENCES

  1. 1

    World Development Report 1978 (The World Bank, Washington, D.C., 1978). https://openknowledge.worldbank.org/handle/10986/5961.

  2. 2

    UN Economic and Social Council, Statistical Commission, Forty-Seventh Session, March 8–11, 2016: Final Report of the Friends of the Chair Group on the Evaluation of the 2011 Round of the International Comparison Programme. United Nations E/CN.3/2016/9.

  3. 3

    UN Economic and Social Council, Statistical Commission, Forty-Seventh Session, March 8–11, 2016: Report. United Nations E/2016/24-E/CN.3/2016/34.

  4. 4

    UN Economic and Social Council, Statistical Commission, Fiftieth Session, March 5–8, 2019: Report of the World Bank on the International Comparison Programme. United Nations E/CN.3/2019/14.

  5. 5

    UN Economic and Social Council, Statistical Commission, Fiftieth Session, March 5–8, 2019: Report. United Nations E/2019/24-E/CN.3/2019/34.

  6. 6

    UN Economic and Social Council, Statistical Commission, Fifty-First Session, March 3–6, 2020: Report. United Nations E/2020/24-E/CN.3/2020/37.

  7. 7

    Measuring the Real Size of the World Economy: The Framework, Methodology, and Results of the International Comparison Program—ICP (World Bank, 2013).

  8. 8

    Purchasing Power Parities and the Real Size of the World Economies: Results from the 2017 International Comparison Program (The World Bank, 2020).

  9. 9

    A. Kosarev and S. Sergeev, “Linking ICP regions with dual participation using the "partially-multilateral” approach (2014 CIS ICP experience),” in The 35th IARIW General Conference (Copenhagen, 2018).

  10. 10

    CIS-Stat: “International comparisons of the GDP of the CIS countries based on the Purchasing Power Parity of Currencies according to the Data for 2014" (CIS Interstate Statistical Committee, Moscow, 2017); CIS-Stat: "2014 International Comparison of CIS Countries’ GDP Based on Purchasing Power Parities” (Interstate Statistical Committee of the Commonwealth of Independent States, Moscow, 2017).

  11. 11

    CIS-Stat: “International Comparisons Based on Purchasing Power Parity—Results Based on Data for 2017, Updated Data for 2011 and 2014” (CIS Interstate Statistical Committee, Moscow, 2020); CIS-Stat: “International Comparison Based on Purchasing Power Parities—2017 Results, 2011 and 2014 Revised Results” (Interstate Statistical Committee of the Commonwealth of Independent States, Moscow, 2020).

  12. 12

    W. S. Cleveland, “Robust locally weighted regression and smoothing scatterplots,” J. Am. Stat. Assoc. 74 (368), 829–836 (368).

  13. 13

    D. J. Poirier, The Econometrics of Structural Change, With Special Emphasis on Spline Functions (North-Holland Publ. Co., Amsterdam–New York–Oxford, 1976).

    Google Scholar 

  14. 14

    T. Josip and I. Družić, “The Harrod–Balassa–Samuelson effect: A survey of empirical evidence,” EFZG Work. Pap. Ser., No. 607 (2006).

  15. 15

    K. Wolfhard, “Beyond Engel’s law—a cross-country analysis,” J. Socio-Econ. 47, 118–134 (2013). https://www.sciencedirect.com/science/article/abs/pii/S1053535713001418#!.

    Article  Google Scholar 

  16. 16

    H. Kharas, The Emerging Middle Class in Developing Countries. Working Paper No. 285 (OECD Dev. Centre, 2010).

Download references

Author information

Affiliations

Authors

Corresponding author

Correspondence to A. E. Kosarev.

Ethics declarations

The authors declare that they have no conflicts of interest.

Additional information

Translated by I. Pertsovskaya

Rights and permissions

Reprints and Permissions

About this article

Verify currency and authenticity via CrossMark

Cite this article

Kosarev, A.E. Stratification of the EU/OECD and CIS Economies Based on 2017 Purchasing Power Parities. Stud. Russ. Econ. Dev. 32, 44–51 (2021). https://doi.org/10.1134/S1075700721010081

Download citation

Keywords:

  • stratification
  • purchasing power parity of currencies
  • GDP per capita
  • moving linear segment procedure