The Quantitative Analysis and its Methods of the Exchange of Non-equivalents between Agriculture and Industry

Abstract

The purpose of this article is to elucidate systematically and quantitatively the fact of the exchange of non-equivalents between agriculture and industry-the low level of agricultural prices and the high level of monopolistic prices in other sections, and the state of the outflow and inflow of value in total among sections as the result of the unreasonable price formation. Prof. J. Hanada is a pioneer of the above-mentioned quantitative analysis*. In this study, I try to develop and amplify his ideas and methods much more. Various indices are calculated and quantified in the following style and methods. "Price" is quantified in the form of net product per hour of labour. "Value", "Price of production" and "Cost-price", which are the standards to judge whether "Price" is proper, are quantified each in the form of "net original domestic product per hour of labour", "the average wages plus the average profit per hour of labour", "the average wages per hour of labour". Moreover, the above-mentioned numerical values are normalized using net original domestic product per hour of labour as 100, and plotted. The average rate of profit is calculated using the total capital and. profit of the section of material production including agriculture, and wholesale and retail trade. The use of normalized values simplifies comparisons and eliminates effects of inflation. The above-mentioned methods enable us systematically to know the realization rate of value and the state of the exchange of non-equivalents in time series and to compare among various sections, regarding 100 (net original domestic product per hour of labour) as the first standard. In the quantitative analysis of the outflow and inflow of value among sections, the produced value and the realized value are elucidated regarding the net original domestic product as 100. And it is made clear that most of the outflow-value from agriculture flows into manufacturing.
* J.Hanada, “Price Ploblems of Japanese Agricultural Product”, Noubunkyo, 1978, Section II., Chapter 5. reference.