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  1. Could you define GVA for me? At least in terms of the difference that might be important for both Scotland and England? Wiki is no help here.

  2. Will you submit that even just the England's GVA is the major part of the UK GDP (and larger than Spain's even at today's exchange rate), or does GVA include something GDP doesn't and which is significant for England?


*Lunatic*, n.
One whose delusions are out of fashion.
by DoDo on Mon Jan 14th, 2008 at 01:31:10 PM EST
[ Parent ]
Gross Value Added is a UN stat, if memory serves. It's like value added for the purposes of VAT, ie selling amount less cost of production/inputs, but with an added twist for national accounting - it also deducts national consumption of the good or service produced.

Since much of UK production of gas and oil is also used as intermediate production inputs for other goods and services, this would discount the portion of oil and gas production on those portions not consumed (ie not ending up in another state as finished goods or services) or exported. And, since much of the transformation of oil and gas as intermediate good occurs in England, then the understating is simply compounded.

Account for it the way countries are accounted for rather than regions within the UK (and, perhaps for further measure, put Scotland on the Euro) and I strongly suspect Scotland's GDP would be closer to Norways' than the GVA statistic London puts out.

The Hun is always either at your throat or at your feet. Winston Churchill

by r------ on Mon Jan 14th, 2008 at 01:46:25 PM EST
[ Parent ]
Actually, if I am not mistaken Gross Value Added is a little easier to understand than GDP.

Suppose you just take the prices and quantities of all goods and services exchanged over a reference period within a reference region, and add them up. The problem with that is that tehre is double-counting. If I produce a piece of cloth and sell it to you for 100 and you make a shirt out of it and sell it on for 150, the sum of the exchange values is 250, but the 100 of materials is double-counted.  So, you can do one of two things. Either you only count the goods and services purchased for comnsumption (i.e., that don't get used to produce something else that is then sold) or you consider the value added which is 100 for me, but 50 for you.

So each transaction has a price, but also a value added which is the price minus the cost of all the inputs that were used in producing the good or service traded.

So you tally not price and volume traded, but value added and volume traded. That is GVA.

GDP requires you to subtract imports, add exports, and so on, so it is not quite as simple to understand as "just tally everything and add it up".

We have met the enemy, and he is us — Pogo

by Migeru (migeru at eurotrib dot com) on Mon Jan 14th, 2008 at 01:47:32 PM EST
[ Parent ]

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