Source
Source Contact person/organisation Contact person/organisationIn this dataset, almost all OECD countries compile their data according to 2008 System of National Account (SNA).
The link to the file "ANA_changes.xls" is available for users to provide more information on where OECD countries and non member countries stand regarding the change over the 2008 SNA.
The readers' guide gives general information on the dataset and withheld criteria for this dataset.
Data Characteristics Data Characteristics Other data characteristics Other data characteristicsValue added reflects the contribution of labour and capital to production. It can be shown by type of activity, by type of product, by institutional sector, etc.. Value added is a key variable in economic analyses such as productivity and structural analyses.
Concepts & Classifications Concepts & Classifications Key statistical concept Key statistical conceptDefinition
Value added at basic prices can be simply defined as the difference between gross output (at basic prices) and intermediate consumption (at purchasers' prices) and can be decomposed into the following components: compensation of employees; gross operating surplus; mixed income; and other taxes on production less subsidies on production. It can also be derived as the difference between GDP (at market prices) and taxes on products less subsidies on products.
The SNA recommends the basic price valuation for value added but it can also be measured on different price bases such as producers' prices and at factor cost.
Other manipulations Other manipulationsOne of the major advantages of value added is that it avoids problems inherent in the measurement of output which is a gross concept - gross in the sense that it counts the output of all production units whether or not the output is used in the domestic production of other goods and services. Countries with fragmented production networks therefore will have, all other things equal, higher output than those with more consolidated networks, complicating international comparisons. This can also be a temporal problem as production networks can become more or less consolidated (through outsourcing for example) within a country from one year to another. Indeed production networks have become increasingly globalised in recent years, further affecting temporal and cross-country comparability. Value added avoids these problems by measuring the value that a resident unit adds to that of the units that supply its inputs.
Like its GDP counterpart, value added can also be measured on a net basis, where the "net" refers to net of depreciation.
Like its nominal counterpart, real value added can be derived as the difference between real output and real intermediate consumption, an approach known as double-deflation.
A useful additional comment worth making in the context of value added concerns non-market output. By convention, because market prices are not observable, non-market output is calculated on a sum of costs approach with gross operating surplus set equal to depreciation only and no net return to capital imputed.
Other Aspects Other Aspects Recommended uses and limitations Recommended uses and limitationsComparability
Not all countries produce value added on the basis of basic prices. Japan uses approximately market prices. New Zealand and China use producers' prices, and Iceland and the USA use factor costs.
The tables and figures showing breakdowns by activity are based on the recently revised classification system (ISIC Rev. 4). Countries generally collect information using their own industrial classification systems. The conversion from a national classification system to ISIC may create some comparability issues. That said, at the 10 activity level presented here, for most countries the sectors are generally comparable. For more information see reader's guide "industrial classification".
In this dataset, almost all OECD countries compile their data according to 2008 System of National Account (SNA).
The link to the file "ANA_changes.xls" is available for users to provide more information on where OECD countries and non member countries stand regarding the change over the 2008 SNA.
The readers' guide gives general information on the dataset and withheld criteria for this dataset.
Value added reflects the contribution of labour and capital to production. It can be shown by type of activity, by type of product, by institutional sector, etc.. Value added is a key variable in economic analyses such as productivity and structural analyses.
Definition
Value added at basic prices can be simply defined as the difference between gross output (at basic prices) and intermediate consumption (at purchasers' prices) and can be decomposed into the following components: compensation of employees; gross operating surplus; mixed income; and other taxes on production less subsidies on production. It can also be derived as the difference between GDP (at market prices) and taxes on products less subsidies on products.
The SNA recommends the basic price valuation for value added but it can also be measured on different price bases such as producers' prices and at factor cost.
One of the major advantages of value added is that it avoids problems inherent in the measurement of output which is a gross concept - gross in the sense that it counts the output of all production units whether or not the output is used in the domestic production of other goods and services. Countries with fragmented production networks therefore will have, all other things equal, higher output than those with more consolidated networks, complicating international comparisons. This can also be a temporal problem as production networks can become more or less consolidated (through outsourcing for example) within a country from one year to another. Indeed production networks have become increasingly globalised in recent years, further affecting temporal and cross-country comparability. Value added avoids these problems by measuring the value that a resident unit adds to that of the units that supply its inputs.
Like its GDP counterpart, value added can also be measured on a net basis, where the "net" refers to net of depreciation.
Like its nominal counterpart, real value added can be derived as the difference between real output and real intermediate consumption, an approach known as double-deflation.
A useful additional comment worth making in the context of value added concerns non-market output. By convention, because market prices are not observable, non-market output is calculated on a sum of costs approach with gross operating surplus set equal to depreciation only and no net return to capital imputed.
Comparability
Not all countries produce value added on the basis of basic prices. Japan uses approximately market prices. New Zealand and China use producers' prices, and Iceland and the USA use factor costs.
The tables and figures showing breakdowns by activity are based on the recently revised classification system (ISIC Rev. 4). Countries generally collect information using their own industrial classification systems. The conversion from a national classification system to ISIC may create some comparability issues. That said, at the 10 activity level presented here, for most countries the sectors are generally comparable. For more information see reader's guide "industrial classification".