Do products which are only produced and consumed locally contribute to GDP value?
$begingroup$
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 hours ago
Kenny LJ
4,72721644
asked 5 hours ago
PabloPablo
309110
$endgroup$
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 hours ago
Kenny LJ
4,72721644
asked 5 hours ago
PabloPablo
309110
$endgroup$
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 hours ago
Kenny LJ
4,72721644
asked 5 hours ago
PabloPablo
309110
$endgroup$
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 hours ago
Kenny LJ
4,72721644
asked 5 hours ago
PabloPablo
309110
edited 2 hours ago
Kenny LJ
4,72721644
asked 5 hours ago
PabloPablo
309110
edited 2 hours ago
Kenny LJ
4,72721644
edited 2 hours ago
Kenny LJ
4,72721644
edited 2 hours ago
Kenny LJ
4,72721644
4,72721644
asked 5 hours ago
PabloPablo
309110
asked 5 hours ago
PabloPablo
309110
asked 5 hours ago
PabloPablo
309110
309110
add a comment |
add a comment |
1 Answer
1
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oldest
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$begingroup$
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 hours ago
Kenny LJKenny LJ
4,72721644
$endgroup$
add a comment |
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1 Answer
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1 Answer
1
active
oldest
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oldest
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active
oldest
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 hours ago
Kenny LJKenny LJ
4,72721644
$endgroup$
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 hours ago
Kenny LJKenny LJ
4,72721644
$endgroup$
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 hours ago
Kenny LJKenny LJ
4,72721644
$endgroup$
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 hours ago
Kenny LJKenny LJ
4,72721644
answered 2 hours ago
Kenny LJKenny LJ
4,72721644
answered 2 hours ago
Kenny LJKenny LJ
4,72721644
answered 2 hours ago
Kenny LJKenny LJ
4,72721644
4,72721644
add a comment |
add a comment |
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