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Table B.2: Custom design software, 1981-1996

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  1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996
Domestic production1 Carried back from 1986 on growth of selected receipts (SCS) Industry receipts from 'custom software development' and 'contract programming' (SCS)
+ Software royalties, received from abroad Estimated as 28% of foreign sales receipts for custom software, % based on 1990 annual benchmark Annual data from BOP surveys of International Transactions in Commercial Services
+ Margins2 Ratio of domestic production of custom-design to gross output of I/O commodities 575 (1981-85) and 636 (1986-97), of which custom-design is part, applied to margins on same commodities
+ Custom-design imports Equivalent to 'BOP deduction of custom-design imports' captured in merchandise imports in estimation of pre-packaged software, with reverse sign
+ Software royalties, payments abroad Estimated as 2.5 X custom-design imports in current and past two years, ratio based on 1990 benchmark Annual data from BOP surveys of International Transactions in Commercial Services
= Total supply
- Foreign sales receipts1 Carried back from 1997 on growth of foreign revenues of computer services industry (SCS)
- Software royalties, received from abroad Estimated as 28% of foreign sales receipts for custom software, % based on 1990 benchmark Annual data from BOP surveys of International Transactions in Commercial Services
= Supply to domestic market
- Adjustment for software to be embedded2 Supply to domestic market allocated across industries in proportion to use of I/O commodities 575 (1981-85) & 636 (1986-97); deduction = 40% of amounts allocated to software producing/embedding industries
= Investment in custom-design software
Of which:  
   Government Estimated as 5% of total custom-software investment, % based on average of 1997-98 benchmarks, plus government share of custom-software already capitalized
   Business Residually derived as total investment in custom-software investment minus government investment in same

1 Survey of Computer Services (SCS).

2 I/O commodity 575 is "Software development, computer service, and rental"; I/O commodity 636 is "Professional and processing computer services".