Gross State Product

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Gross state product (or gross territorial product) is a measurement of the economic output of a U.S. state or an Australian state. It is the sum of all value added by industries within the state and serves as a counterpart to the gross domestic product or GDP.

Conceptually, there is no difficulty in taking the definition of GDP for a nation and applying it to a smaller jurisdiction such as a state, or even a local government area. In practice, however, flows of goods, services, labour and capital across state boundaries are not measured with any great accuracy. By contrast, flows across national boundaries are normally recorded as part of the ordinary operations of government. As a result, it is often hard to measure the value added within a state, since this requires netting out 'imports' from other states, and including 'exports' to other states. Similarly, it is difficult to measure the income accruing to factors of production (labour and capital) within a given state.

Gross State Product

See also