Gross Domestic
Product
refers to the
final products at market prices produced by all resident units in a country (or
a region) during a certain period of time.
From the aspect of value added form, GDP refers to the
total value of all products and services produced by all resident units during
a certain period of time minus total value of inputs of non-fixed-assets
products and services or the summation of the value added of all resident
units; the form of products refers to all final goods and services minus
imports of goods and services. In the practice of national accounting, it is
calculated by three approaches, i.e. product approach, income approach and
expenditure approach, respectively, to reflect Gross Product and its
composition of different aspects. According to the
regulations of GDP national accounting as Tianjin Gross Product Value, for
short Tianjin GDP.
Compensation of
Employees
refers to the
whole payment of various forms earned by the labourers
from the productive activities they are engaged in. It includes wages, bonuses
and allowances the labourers earned in monetary form
and in kind. It also includes the free medical services provided to the labourers and the medicine expenses, traffic subsidies,
social insurance fee and housing provident fund paid by the labourer's
working units for them. As the individual economy is concerned, since the labourer's remuneration is not easily distinguished from
the operating profit, both are treated as labourer's
remuneration.
Depreciation of
Fixed Assets
refers to the
depreciation of fixed assets of a given period, drawn in accordance with the
stipulated depreciation rate for the purpose of compensating the wear loss of
the fixed assets or the depreciation of fixed assets calculated in a fictitious
way in accordance with the stipulated unified depreciation rate in the national
economic accounting system. It reflects the value of transfer of the fixed
assets in the production of the current period. The depreciation of fixed
assets in various enterprises and institutions managed as enterprises refers to
the depreciation expenses actually drawn. In government agencies and
institutions not managed as enterprises which do not draw the depreciation
expenses, as well as for the houses of residents, the depreciation of fixed
assets is the imputed depreciation, which is calculated in accordance with the
stipulated unified depreciation rate. In principle, the depreciation of fixed
assets should be calculated on the basis of the re-purchased value of the fixed
assets. However, there is no actual condition to re-evaluate all the fixed
assets in
Net Taxes on
Production
refer to the
residual of the taxes on production minus the subsidies on production. The
taxes on production refers to the various taxes, extra charges and fees levied
on the production units on their production, sale and business activities as
well as on some sectors of production, such as fixed assets, land and labour force, used in the production activities they are
engaged in. In contrast to the taxes on production, the subsidies on production
refer to the unilateral transfer of part of the government’s revenue to the
production units and are therefore regarded as negative taxes on production.
They include subsidies on the loss due to implementation of government
policies, price subsidies, etc.
Operating Surplus
refers to the
balance of the value added created by the resident units deducting the labourer's remuneration, net taxes on production and the
depreciation of fixed assets. It is equivalent to the business profit of the
enterprises plus subsidies on production, but the wages and welfare expenses
paid from the profits should be deducted.
Final Consumption Expenditure
refers to the
total expenditure of resident units on final consumption of goods and services
in a certain period, namely the expenditure of the resident units for purchases
of goods and services from domestic economic territory and abroad to meet the
requirements of material, cultural and spiritual life. It excludes the
consumption expenditure of non-resident units on consumption in the economic
territory of the country. The final consumption is classified into households’
consumption and government consumption.
Households Consumption Expenditure
refers to the
total expenditure of resident households on the final consumption of goods and
services. In addition to the consumption of goods and services bought by the
households directly with money, the households consumption also includes
expenditure on goods and services obtained by the households on other ways,
i.e. the goods and services provided to the households by the units in the form
of payment in kind and transfer in kind; the goods and services produced and
consumed by the households themselves, in which the services refer only to the
owner-occupied housing and domestic services provided by the paid household
workers; financial intermediate services provided by financial institutions;
insurance services provided by insurance companies.
Government
Consumption Expenditure
refers to the
expenditure on the consumption of the public services provided by the
government to the whole society and the net expenditure on the goods and
services provided by the government to the households at free charge or lower
prices. The former equals to the output value of the government services minus
the value of operating income obtained by the government departments, the
output value of the government services equals to its current operating
expenditure plus depreciation of fixed assets. The latter equals to the market
value of the goods and services provided by the government free of charge or at
low prices to the households minus the value received by the government from
the households.
Gross Capital
Formation
refers to the
fixed assets acquired minus those disposed and the net value of inventory,
including the total fixed assets formation and the increase in inventory.
Gross Fixed
Capital Formation
refers to the
value of fixed assets acquired minus those disposed of during a given period.
Fixed assets are the assets produced through production activities with
specified unit value which could be used for over one year, excluding natural
assets. Total fixed capital formation can be categorized into total tangible assets
formation and total intangible assets formation. The total tangible assets
formation include the value of the construction projects, installation projects
completed and the equipment, apparatus and instruments purchased as well as the
value of land improved, the value of draught animals, breeding stock, animal
for milk, wool and for recreational animals purpose and the newly increased
forest with economic value during a given period. The total intangible assets
formation includes the prospecting of minerals, the acquisition of computer
software minus the disposal of them.
Change in Inventory
refers to the
market value of the change in inventory of resident units during a given
period, i.e. the difference of value between the beginning and the end of the
period minus the current gains due to the change in prices. The increase in
inventory can be positive or negative. A positive value indicates the increase
in inventory while a negative value indicates the decrease in stock. The
inventory includes the raw materials, fuel and reserve materials purchased by
the production units as well as the inventory of finished products,
semi-finished products, etc.
Net Exports of Goods and Services
refers to the
difference of the exports of goods and services minus the imports of goods and
services. The imports include the value of various goods and services sold or
gratuitously transferred by the resident units to the non-resident units. The
imports include the value of various goods and services purchased or gratuitously
acquired by the resident units from the non-resident units. Because the
provision of services and the use of them happen simultaneously, the import and
export of services do not appear to have the phenomena of crossing the border
of the country. The acquisition of services by the resident units from abroad
is usually treated as import while the acquisition of services by non-resident
units in this country is usually treated as export. The export and import of
goods are calculated at FOB. The formula for calculating is as follows:
Net Export of Goods and Services = Value of
Export of Goods and Service - Value of Import
of Goods and Services