1. Gross Domestic Product (GDP) Concepts/ the Informal Economy and GDP G
Gross Domestic Product (GDP) Concepts/ the Informal Economy and GDP G.Raveendran

2. Gross Domestic Product (GDP)
The output (production) by resident
Financial and Non-financial Corporations
Government Bodies
Non-profit Institutions
Households
Produced within the economic boundary of the country/region
Measured without double counting

3. GDP EXERCISE
OUT PUT AND INTER-INDUSTRY CONSUMPTION OF PRODUCTION ( YEN)
INDUSTRY A B C
TOTAL 50
150
100
500
250
700
200
800

4. GDP EXERCISE-1
OUT PUT AND INTER-INDUSTRY CONSUMPTION OF PRODUCTION ( YEN)
INDUSTRY A B C
TOTAL 50
150
100
500
250
700
200
800
VALUE ADDITION
300
2000

5. FACTORS OF PRODUCTION- WHO PRODUCES
Land
Capital
Labour
Entrepreneur

6. FACTOR PAYMENTS Land - Rent Capital - Interest Labour - Wages
Entrepreneur Profit

7. Measurement Approaches
Production Approach
Income Approach
Expenditure Approach

8. Frontiers of Production (GDP)
Market Output
(Production of goods & services intended to be sold)
Non-market output of government and non- profit institution
Production of goods by households for own consumption
Own account production of capital goods by businesses
Housing services (imputed rents) of home owner-occupiers, not including other services produced by households for their own account

9. Measurement Principles
Market output (sales) plus changes in inventories of finished products and work in progress.
Measured at basic prices- per unit revenue received by the producer, excluding taxes on products but including subsidies on products.
Non-market output of general government and non-profit institutions is measured by the sum of its costs, including compensation of employees, consumption of fixed capital.
Housing services provided by home owner–occupiers are imputed as being equal to the rents they would have paid for comparable housing

10. INSTITUTIONAL SECTORS OF PRODUCTION
Non-Financial Corporations
Financial Corporations
Government Units including Social Security Funds
Non-Profit Institutions Serving Households (NPISHs)
Households

11. Institutional Units in National Accounts (contd)
Non-financial corporations are institutional units primarily engaged in the production of market goods and non-financial services.
Financial corporations are institutional units primarily engaged in financial intermediation or in auxiliary financial activities.
General governments are institutional units which in addition to fulfilling their political responsibilities and role of economic regulation, produce principally non-market services for individual or collective consumption and re-distribute income & wealth.

12. Institutional Units in National Accounts (contd)
Households include all physical persons in the economy, with the institutional unit consisting of one individual or a group of individuals (Pure households).
It also includes unincorporated enterprises owned by the household (Household sector).
The Principal functions of the households are the supply of labour, financial consumption and as entrepreneurs production of market goods and services.
Non-profit institutions serving households (NPISHs) are entities which are principally engaged in the production of non-market services to households and whose main resources are voluntary contributions by households.

13. INFORMAL SECTOR Essentially a part of the household sector
Includes both financial and non-financial production units
Detailed accounts may not be available to separate the accounts of the enterprise from that of the household
List frames of enterprises may not be easily available due to non-registration
May not be employing paid workers (own account enterprises) or may be employing very few workers (establishments).
Usually not covered in the regular statistical reporting system.

14. ESTIMATING GDP CONTRIBUTION OF INFORMAL SECTOR
Estimate Labour Input from Labour Force Surveys by Industry Group
Estimate Average Value Added Per Worker (VAPW) from Informal Sector Surveys or Mixed Surveys for each of the Industry Group
Estimate Gross Value Added (GVA) by Multiplying the Estimated Labour Input with the Corresponding VAPN

15. THANK YOU
WIEGO