Prices and wages in Slovenia and FR Yugoslavia PDF Download

Author: Egon Žižmond
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ISBN:
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Languages : en
Pages : 19

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Book Description
The purpose of the research work was international comparison of retail prices and wages. The research work had three main goals. The first goal of the research work was to calculate the national price level in Slovenia in comparison with FR Yugoslavia. The national price level usually depends upon the level of development. Slovenia is more developed than FR Yugoslavia (in 1995, GDP per capita amounted in Slovenia to 9352 US$, while in FR Yugoslavia only to 1510 US$), therefore its national price level is higher than in FR Yugoslavia. In 1996, the national price level in Slovenia was by 73% higher than in FR Yugoslavia. The second goal of the research work was to establish retail price levels of commodity groups. The most evident difference appeared between two main commodity groups: products and service. It was found out that in October 1996, the price level of products was by 39% higher in Slovenia than in FR Yugoslavia. Tradeables have therefore relatively small influence upon the national price level in FR Yugoslavia mainly because the relatively close market, relatively small GDP per capita and consequently small purchasing power. On the other hand in October 1996, prices of services were even by 148% higher in Slovenia than in FR Yugoslavia. Prices of services (nontradeables) depend upon the wage level both because of the purchasing power (an important part of services is traded with the local population). This is why the level of prices of services was lower in FR Yugoslavia than in Slovenia. The third goal of the research work was to estimate the relative purchasing power of the Slovenian average net wage (e.i.the relation between the internal purchasing powers of wages in Slovenia and in FR Yugoslavia). It was found out that in 1996, the internal purchasing power of the Slovenian average net wage in Slovenia was by around 180% higher than the national purchasing power of the Yugoslav average net wage in FR Yugoslavia.