Gross state product (or gross regional product) is a measurement of the economic output of a state Many sovereign independent states are made up of a number of subnational entities also called states . In some cases, such as the United States, the national government arose from a union of sovereign entities, which transferred some of their powers to the national government, while retaining the remainder of their sovereignty. These are sometimes or province A province is a territorial unit, almost always an administrative division, within a country or state. It is the sum of all value added Value added refers to the difference between the cost of materials purchased by a company plus the cost of the labor to assemble a product and the price at which the company sells the product. An example is the price of gasoline at the pump over the price of the oil in it. In national accounts used in macroeconomics, it refers to the contribution by industries within the state and serves as a counterpart to the gross domestic product The gross domestic product or gross domestic income (GDI), a basic measure of an economy's economic performance, is the market value of all final goods and services made within the borders of a nation in a year. GDP can be defined in three ways, all of which are conceptually identical. First, it is equal to the total expenditures for all final or GDP.

Conceptually, there is no difficulty in taking the definition of GDP for a nation and applying it to a smaller jurisdiction such as a state, or even a local government area. In practice, however, flows of goods, services, labour and capital across state boundaries are not measured with any great accuracy. By contrast, flows national boundaries are normally recorded as part of the ordinary operations of government. As a result, it is often hard to measure the value added within a state, since this requires netting out 'imports' from other states, and including 'exports' to other states. Similarly, it is difficult to measure the income accruing to factors of production (labour and capital) within a given state.

See also

References

Categories: Economic indicators Categories: Mathematical and quantitative methods | Index numbers | National accounts

 

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Dan

Fri, 12 Jun 2009 21:25:00 GM

Ohio has a larger . gross state product. than all five Great Divide states combined even though there is quite a bit of extractive . gross state product. in mining and oil that come from these states. I believe the largest component of Ohio s ...

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