Definition of GSP
GSP is the value added in
production by the labor and property located in a state. GSP for a state is
derived as the sum of the gross state product originating in all industries
in a state. In concept, an industry's GSP, referred to as its "value added",
is equivalent to its gross output (sales or receipts and other operating
income, commodity taxes, and inventory change) minus its intermediate inputs
(consumption of goods and services purchased from other U.S. industries or
imported). Thus, GSP is the state counterpart of the nation's gross domestic
product (GDP), BEA's featured measure of U.S. output.
GSP for the nation differs from GDP for the following
reasons: GSP excludes and GDP includes the compensation of federal civilian
and military personnel stationed abroad and government consumption of fixed
capital for military structures located abroad and for military equipment,
except office equipment; and GSP and GDP have different revision schedules.
BEA prepares GSP estimates for 64 industries. For each
industry, GSP is composed of three components: 1)
Compensation of employees; 2)
Taxes on production and imports less subsidies; and 3)
Gross operating surplus.
Source: Bureau of Economic Analysis.
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