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Abstract

The table below shows how much of Germany’s net domestic product (NDP)—in millions of marks (at factor cost)—was generated by the country’s various economic sectors. We see that agriculture lost its economic primacy around 1890, with its share of the NDP decreasing between 1870 and 1913 from more than 40% to just 23%. Agriculture’s loss was industry’s gain: in 1913 more than half of Germany’s NDP was generated by industry, crafts, mining, and transportation.

Net Domestic Product by Economic Sector (1870–1913)

  • Walter Hoffmann

Source

Net Domestic Product: Figures in Millions of Marks at 1913 Prices

Year

Agriculture,
forestry,
fishery

Mining and
salt-works

Industry
and crafts

Trans-
portation

Trade,
banking,
insurances,
restaurant
business

Domestic
services

Other
services
excluding
defense

Defense

Non-
agricultural
housing

Total

1870

5,738

255

3,742

280

1,082

1,014

–

–

488

14,169

1875

6,595

356

5,453

412

1,438

1,025

1,586

172

614

17,651

1880

6,427

455

5,194

506

1,437

1,027

1,694

174

765

17,679

1885

7,525

563

6,110

629

1,741

1,024

1,760

185

880

20,417

1890

7,732

674

7,941

878

1,982

1,054

2,074

203

1,051

23,589

1895

8,573

757

9,732

1,073

2,478

1,081

2,383

243

1,301

27,621

1900

9,924

1,049

12,220

1,576

2,881

1,038

2,685

252

1,544

33,169

1905

10,231

1,201

13,931

1,984

3,564

1,060

3,088

261

1,869

37,189

1910

10,625

1,530

17,016

2,621

3,953

1,080

3,651

272

2,233

42,981

1913

11,270

1,903

19,902

3,146

4,415

1,061

4,000

346

2,437

48,480

%

%

%

%

%

%

%

%

%

%

%

1870

40.5

1.8

26.4

2.0

7.6

7.2

11.3

11.3

3.4

100

1913

23.3

3.9

41.1

6.5

9.1

2.2

8.3

0.7

5.0

100

This table shows the net product of the various economic sectors, as well as the sum total of these contributions, which, according to Alfred Stobbe (Volkswirtschaftliches Rechnungswesen, 3rd edition. Berlin, 1972, p. 331), amounts to the net domestic product at factor costs. [Walther] Hoffmann—probably neglecting the difference between the “domestic market” and “domestic residence” concepts [Inlands- und Inländerkonzept]—calls this “national income” or “net national product at factor costs” (p. 453).[1] The estimate was derived through the commodity service method based on production statistics and the additional use of the structure of employment and capital incomes according to economic sector in 1913.

Notes

[1] According to the “domestic market concept” [Inlandskonzept], national income is defined as all income earned in the domestic market of a country, including income earned by foreigners who commute to jobs in the country, but excluding income paid to residents of that country who commute to jobs elsewhere. According to the “domestic residence concept [Inländerkonzept], national income is defined as all income earned by residents of a given country – trans.

Source: Walther G. Hoffmann et al., Das Wachstum der deutschen Wirtschaft seit der Mitte des 19. Jahrhunderts. Berlin, 1965, pp. 454–55. Original German table reprinted in Gerd Hohorst, Jürgen Kocka and Gerhard A. Ritter, Sozialgeschichtliches Arbeitsbuch II, 2nd ed. Munich: Beck, 1978, pp. 88-89 (note pp. 90–91).