Do products which are only produced and consumed locally contribute to GDP value?
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According to Wikipedia:
Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced in a period of time, often annually or quarterly. Nominal GDP estimates are commonly used to determine the economic performance of a whole country or region, and to make international comparisons.
But what if a country has a product which is massively or at least moderately produced and consumed only locally, either for tradition or any other reason. And the exports of this product are non existent or at best minimum. In the case the exports are non existent, the international market value of this product would be zero, wouldnt be? Or does the national market value counts in this case? Also, if the international market exists but it's minimum, and most of the production can only be consumed localy, does all those unsalable products value contribute to the GDP value?
gdp
edited 2 days ago
Kenny LJ
4,89521644
asked 2 days ago
PabloPablo
314110
$endgroup$
add a comment |
$begingroup$
According to Wikipedia:
Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced in a period of time, often annually or quarterly. Nominal GDP estimates are commonly used to determine the economic performance of a whole country or region, and to make international comparisons.
But what if a country has a product which is massively or at least moderately produced and consumed only locally, either for tradition or any other reason. And the exports of this product are non existent or at best minimum. In the case the exports are non existent, the international market value of this product would be zero, wouldnt be? Or does the national market value counts in this case? Also, if the international market exists but it's minimum, and most of the production can only be consumed localy, does all those unsalable products value contribute to the GDP value?
gdp
edited 2 days ago
Kenny LJ
4,89521644
asked 2 days ago
PabloPablo
314110
$endgroup$
$begingroup$
GDP is a measure that reflects the value of all goods and services produced in an economy -- whether or not they're exported doesn't matter. Are they produced in the country? That's what counts.
$endgroup$
– WorldGov
yesterday
add a comment |
$begingroup$
According to Wikipedia:
Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced in a period of time, often annually or quarterly. Nominal GDP estimates are commonly used to determine the economic performance of a whole country or region, and to make international comparisons.
But what if a country has a product which is massively or at least moderately produced and consumed only locally, either for tradition or any other reason. And the exports of this product are non existent or at best minimum. In the case the exports are non existent, the international market value of this product would be zero, wouldnt be? Or does the national market value counts in this case? Also, if the international market exists but it's minimum, and most of the production can only be consumed localy, does all those unsalable products value contribute to the GDP value?
gdp
edited 2 days ago
Kenny LJ
4,89521644
asked 2 days ago
PabloPablo
314110
$endgroup$
According to Wikipedia:
Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced in a period of time, often annually or quarterly. Nominal GDP estimates are commonly used to determine the economic performance of a whole country or region, and to make international comparisons.
But what if a country has a product which is massively or at least moderately produced and consumed only locally, either for tradition or any other reason. And the exports of this product are non existent or at best minimum. In the case the exports are non existent, the international market value of this product would be zero, wouldnt be? Or does the national market value counts in this case? Also, if the international market exists but it's minimum, and most of the production can only be consumed localy, does all those unsalable products value contribute to the GDP value?
gdp
gdp
edited 2 days ago
Kenny LJ
4,89521644
asked 2 days ago
PabloPablo
314110
edited 2 days ago
Kenny LJ
4,89521644
asked 2 days ago
PabloPablo
314110
edited 2 days ago
Kenny LJ
4,89521644
edited 2 days ago
Kenny LJ
4,89521644
edited 2 days ago
Kenny LJ
4,89521644
4,89521644
asked 2 days ago
PabloPablo
314110
asked 2 days ago
PabloPablo
314110
asked 2 days ago
PabloPablo
314110
314110
$begingroup$
GDP is a measure that reflects the value of all goods and services produced in an economy -- whether or not they're exported doesn't matter. Are they produced in the country? That's what counts.
$endgroup$
– WorldGov
yesterday
add a comment |
$begingroup$
GDP is a measure that reflects the value of all goods and services produced in an economy -- whether or not they're exported doesn't matter. Are they produced in the country? That's what counts.
$endgroup$
– WorldGov
yesterday
$begingroup$
GDP is a measure that reflects the value of all goods and services produced in an economy -- whether or not they're exported doesn't matter. Are they produced in the country? That's what counts.
$endgroup$
– WorldGov
yesterday
$begingroup$
GDP is a measure that reflects the value of all goods and services produced in an economy -- whether or not they're exported doesn't matter. Are they produced in the country? That's what counts.
$endgroup$
– WorldGov
yesterday
add a comment |
1 Answer
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Yes.
1. You seem to believe that goods and services that are not exported may not be counted.
This is false. (Almost) all goods and services are counted, even if they are not exported.
2. The only exception is (intangible) services produced for one's own consumption.
Examples: Mowing one's lawn, making one's meals, and cleaning one's home are not counted in GDP.
Note that (tangible) goods produced for one's own consumption are counted in GDP. For example, the crops produced and consumed by a rural household are counted in GDP, even though they are not sold on the market.
(There is one exception to the exception, which is that housing services "generated" by one's home is counted in GDP.).
answered 2 days ago
Kenny LJKenny LJ
4,89521644
$endgroup$
$begingroup$
"(tangible) goods produced for one's own consumption are counted in GDP". I take it you are saying that conceptually the value added in producing them is part of GDP. Whether government statistical agencies actually take the trouble to count, or make realistic estimates for, items such as vegetables people grow in their gardens is presumably a further question?
$endgroup$
– Adam Bailey
yesterday
$begingroup$
@AdamBailey: Please see 6.32 and 6.33 of the UN System of National Accounts. In particular and more to your point, 6.33 says, "When the amount of a good produced within households is believed to be quantitatively important in relation to the total supply of that good in a country, its production should be recorded. Otherwise, it may not be worthwhile trying to estimate it in practice."
$endgroup$
– Kenny LJ
yesterday
add a comment |
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1 Answer
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1 Answer
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oldest
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active
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votes
$begingroup$
Yes.
1. You seem to believe that goods and services that are not exported may not be counted.
This is false. (Almost) all goods and services are counted, even if they are not exported.
2. The only exception is (intangible) services produced for one's own consumption.
Examples: Mowing one's lawn, making one's meals, and cleaning one's home are not counted in GDP.
Note that (tangible) goods produced for one's own consumption are counted in GDP. For example, the crops produced and consumed by a rural household are counted in GDP, even though they are not sold on the market.
(There is one exception to the exception, which is that housing services "generated" by one's home is counted in GDP.).
answered 2 days ago
Kenny LJKenny LJ
4,89521644
$endgroup$
$begingroup$
"(tangible) goods produced for one's own consumption are counted in GDP". I take it you are saying that conceptually the value added in producing them is part of GDP. Whether government statistical agencies actually take the trouble to count, or make realistic estimates for, items such as vegetables people grow in their gardens is presumably a further question?
$endgroup$
– Adam Bailey
yesterday
$begingroup$
@AdamBailey: Please see 6.32 and 6.33 of the UN System of National Accounts. In particular and more to your point, 6.33 says, "When the amount of a good produced within households is believed to be quantitatively important in relation to the total supply of that good in a country, its production should be recorded. Otherwise, it may not be worthwhile trying to estimate it in practice."
$endgroup$
– Kenny LJ
yesterday
add a comment |
$begingroup$
Yes.
1. You seem to believe that goods and services that are not exported may not be counted.
This is false. (Almost) all goods and services are counted, even if they are not exported.
2. The only exception is (intangible) services produced for one's own consumption.
Examples: Mowing one's lawn, making one's meals, and cleaning one's home are not counted in GDP.
Note that (tangible) goods produced for one's own consumption are counted in GDP. For example, the crops produced and consumed by a rural household are counted in GDP, even though they are not sold on the market.
(There is one exception to the exception, which is that housing services "generated" by one's home is counted in GDP.).
answered 2 days ago
Kenny LJKenny LJ
4,89521644
$endgroup$
$begingroup$
"(tangible) goods produced for one's own consumption are counted in GDP". I take it you are saying that conceptually the value added in producing them is part of GDP. Whether government statistical agencies actually take the trouble to count, or make realistic estimates for, items such as vegetables people grow in their gardens is presumably a further question?
$endgroup$
– Adam Bailey
yesterday
$begingroup$
@AdamBailey: Please see 6.32 and 6.33 of the UN System of National Accounts. In particular and more to your point, 6.33 says, "When the amount of a good produced within households is believed to be quantitatively important in relation to the total supply of that good in a country, its production should be recorded. Otherwise, it may not be worthwhile trying to estimate it in practice."
$endgroup$
– Kenny LJ
yesterday
add a comment |
$begingroup$
Yes.
1. You seem to believe that goods and services that are not exported may not be counted.
This is false. (Almost) all goods and services are counted, even if they are not exported.
2. The only exception is (intangible) services produced for one's own consumption.
Examples: Mowing one's lawn, making one's meals, and cleaning one's home are not counted in GDP.
Note that (tangible) goods produced for one's own consumption are counted in GDP. For example, the crops produced and consumed by a rural household are counted in GDP, even though they are not sold on the market.
(There is one exception to the exception, which is that housing services "generated" by one's home is counted in GDP.).
answered 2 days ago
Kenny LJKenny LJ
4,89521644
$endgroup$
Yes.
1. You seem to believe that goods and services that are not exported may not be counted.
This is false. (Almost) all goods and services are counted, even if they are not exported.
2. The only exception is (intangible) services produced for one's own consumption.
Examples: Mowing one's lawn, making one's meals, and cleaning one's home are not counted in GDP.
Note that (tangible) goods produced for one's own consumption are counted in GDP. For example, the crops produced and consumed by a rural household are counted in GDP, even though they are not sold on the market.
(There is one exception to the exception, which is that housing services "generated" by one's home is counted in GDP.).
answered 2 days ago
Kenny LJKenny LJ
4,89521644
answered 2 days ago
Kenny LJKenny LJ
4,89521644
answered 2 days ago
Kenny LJKenny LJ
4,89521644
answered 2 days ago
Kenny LJKenny LJ
4,89521644
4,89521644
$begingroup$
"(tangible) goods produced for one's own consumption are counted in GDP". I take it you are saying that conceptually the value added in producing them is part of GDP. Whether government statistical agencies actually take the trouble to count, or make realistic estimates for, items such as vegetables people grow in their gardens is presumably a further question?
$endgroup$
– Adam Bailey
yesterday
$begingroup$
@AdamBailey: Please see 6.32 and 6.33 of the UN System of National Accounts. In particular and more to your point, 6.33 says, "When the amount of a good produced within households is believed to be quantitatively important in relation to the total supply of that good in a country, its production should be recorded. Otherwise, it may not be worthwhile trying to estimate it in practice."
$endgroup$
– Kenny LJ
yesterday
add a comment |
$begingroup$
"(tangible) goods produced for one's own consumption are counted in GDP". I take it you are saying that conceptually the value added in producing them is part of GDP. Whether government statistical agencies actually take the trouble to count, or make realistic estimates for, items such as vegetables people grow in their gardens is presumably a further question?
$endgroup$
– Adam Bailey
yesterday
$begingroup$
@AdamBailey: Please see 6.32 and 6.33 of the UN System of National Accounts. In particular and more to your point, 6.33 says, "When the amount of a good produced within households is believed to be quantitatively important in relation to the total supply of that good in a country, its production should be recorded. Otherwise, it may not be worthwhile trying to estimate it in practice."
$endgroup$
– Kenny LJ
yesterday
$begingroup$
"(tangible) goods produced for one's own consumption are counted in GDP". I take it you are saying that conceptually the value added in producing them is part of GDP. Whether government statistical agencies actually take the trouble to count, or make realistic estimates for, items such as vegetables people grow in their gardens is presumably a further question?
$endgroup$
– Adam Bailey
yesterday
$begingroup$
"(tangible) goods produced for one's own consumption are counted in GDP". I take it you are saying that conceptually the value added in producing them is part of GDP. Whether government statistical agencies actually take the trouble to count, or make realistic estimates for, items such as vegetables people grow in their gardens is presumably a further question?
$endgroup$
– Adam Bailey
yesterday
$begingroup$
@AdamBailey: Please see 6.32 and 6.33 of the UN System of National Accounts. In particular and more to your point, 6.33 says, "When the amount of a good produced within households is believed to be quantitatively important in relation to the total supply of that good in a country, its production should be recorded. Otherwise, it may not be worthwhile trying to estimate it in practice."
$endgroup$
– Kenny LJ
yesterday
$begingroup$
@AdamBailey: Please see 6.32 and 6.33 of the UN System of National Accounts. In particular and more to your point, 6.33 says, "When the amount of a good produced within households is believed to be quantitatively important in relation to the total supply of that good in a country, its production should be recorded. Otherwise, it may not be worthwhile trying to estimate it in practice."
$endgroup$
– Kenny LJ
yesterday
add a comment |
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$begingroup$
GDP is a measure that reflects the value of all goods and services produced in an economy -- whether or not they're exported doesn't matter. Are they produced in the country? That's what counts.
$endgroup$
– WorldGov
yesterday