LEVEL COMPARISON


We construct the purchasing power parity (PPP) to implement the level comparison of agricultural outputs and inputs. The relative price indexes for agricultural output and input at the based year were constructed using the purchasing power parity (PPP) for each currency. The Törnqvist index was used to chain-link the cross-country comparable prices (or PPP) to construct a time series of relative price indexes in each country. Agricultural output and input quantities are derived as the norminal value dividing by the relative price index