Sectoral output for an industry or combination of industries ("sector") is the value of its output sold outside that sector. It is usually calculated as the value of the sector's
gross output
In economics, gross output (GO) is the measure of total economic activity in the production of new goods and services in an accounting period. It is a much broader measure of the economy than gross domestic product (GDP), which is limited mainly t ...
minus the value of shipments within the sector from one establishment to another.
Value here is measured for a specified time period and usually in units of nominal money. It may be converted to constant units by multiplying by a
price index to adjust for changes in prices over time and changes in quality of the goods and services produced.
A sectoral output measure is conceptually different from measures of
gross output
In economics, gross output (GO) is the measure of total economic activity in the production of new goods and services in an accounting period. It is a much broader measure of the economy than gross domestic product (GDP), which is limited mainly t ...
or
value-added output. Gross output for the sector consists of sales, or receipts, and other operating income, plus excise taxes paid and net increases in inventories. Value-added measures exclude the value of intermediate inputs such as material, energy, and services, whether from the same industry or others. Thus gross output is larger than sectoral output which is larger than value-added output.
Sectoral output is the measure of output used in "KLEMS"
multifactor measures of productivity, which attempt to account for all direct inputs to production: capital services (K), labor services (L), energy (E), materials purchased (M), and services purchased (S)
When calculating
labor productivity
Workforce productivity is the amount of goods and services that a group of workers produce in a given amount of time. It is one of several types of productivity that economists measure. Workforce productivity, often referred to as labor product ...
, a value-added measure of output should be used to avoid counting other inputs (like purchased materials) as if they were created by the labor and capital applied within the sector.
The definition of sectoral output has been attributed to Frank M. Gollop.
[William Gullickson. 1995]
Measurement of productivity growth in U.S. manufacturing
''Monthly Labor Review
The ''Monthly Labor Review'' (''MLR'') is published by the U.S. Bureau of Labor Statistics
The Bureau of Labor Statistics (BLS) is a unit of the United States Department of Labor. It is the principal fact-finding agency for the U.S. governmen ...
'', p.14, citing the source "Accounting for Intermediate Input: The Link Between Sectoral and Aggregate Measures of Productivity Growth," in ''Measurement and Interpretation of Productivity'' (Washington, National Academy of Sciences, 1979), pp. 318–33.]
See also
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GDP
Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced and sold (not resold) in a specific time period by countries. Due to its complex and subjective nature this measure is ofte ...
*
GNP
The gross national income (GNI), previously known as gross national product (GNP), is the total domestic and foreign output claimed by residents of a country, consisting of gross domestic product (GDP), plus factor incomes earned by foreign ...
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Input–output model
In economics, an input–output model is a quantitative economic model that represents the interdependencies between different sectors of a national economy or different regional economies.Thijs Ten Raa, Input–Output Economics: Theory and App ...
*
Intermediate consumption
Intermediate consumption (also called "intermediate expenditure") is an economic concept used in national accounts, such as the United Nations System of National Accounts (UNSNA), the US National Income and Product Accounts (NIPA) and the European ...
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National accounts
National accounts or national account systems (NAS) are the implementation of complete and consistent accounting techniques for measuring the economic activity of a nation. These include detailed underlying measures that rely on double-entry ...
*
Net output
Net output is an accounting concept used in national accounts such as the United Nations System of National Accounts (UNSNA) and the National Income and Product Accounts, NIPAs, and sometimes in corporate or government accounts. The concept was or ...
References
{{DEFAULTSORT:Sectoral output
Economic data
Production economics
National accounts