GRP is what? GRP structure

There are various economic indicators thatcan be called current. But not all of them are known to ordinary people. And the question "GRP is what?" Not everyone can give an intelligible answer. Therefore, in order to understand such a difficult topic, this article will consider the essence and structure of this indicator.

Gross regional product

GRP can be defined as an indicator of a generalizing type that characterizes the economic activity of a particular region and the process of producing services and goods in particular.

For the publication of GRP data, as a rule,market prices are used. But it is possible to form this indicator with the help of basic prices. In this case, the main difference will be reduced to the sum of net taxes on products (deducted for goods). If we talk about the GRP of the regions of Russia at basic prices, then it should be noted that this is the sum of added values ​​by types of economic activity.

Importance of gross regional product

In order to competently assess the economicthe state of the CIS, it is necessary to use certain indicators that will display the dynamics of key processes. And if we consider the GRP of Russia, then we can say that this indicator is extremely important, especially considering the constantly growing independence of the regions.

The bottom line is that as a basis for conductingan integrated assessment of characteristics of a generalizing type in a market economy can be determined by the SNA (system of national accounts) and the CDS (a system of regional accounts), which is a logical extension of the first. At the same time, in the first system the key position is occupied by the gross domestic product, and in the CHR, respectively, the regional one. This leads to a simple conclusion, which helps to answer the question "GRP is what?": Without this indicator it is not possible to build a CHP, and therefore, a full analysis of the economic state of the region and the country as a whole is also impossible. This means that it is mandatory in the process of economic evaluation.

Key terms

First of all, it is necessary to determine what isthe basic price, which was discussed above. This term is used to describe the value that the manufacturer assigns to a particular unit of the product, taking into account the subsidy for products, but without taxes.

Under the release of goods and services it is worthwhile to understand themthe total value, which is formed as a result of the production activity of residents. The inclusion of the produced and sold product in the release occurs at the market actual price. If we talk about unrealized goods, they are included in the release at average market prices. This factor, like the others listed in this section, includes the GRP structure.

It is important to pay attention to such indicator asintermediate consumption. In this case, we are talking about the price of services and goods that are fully consumed or transformed in the production process within a specific reporting period.

There are also costs associated with the finalconsumption of GRP. They are composed of such indicators as the expenditures of state institutions on collective and individual services, as well as the expenditures of households on final consumption. This category includes spending of non-profit organizations that are engaged in servicing households.

How is GRP calculated?

There are several ways to determine the gross regional product.

This indicator can be calculated at the level ofsectors and industries. To do this, the production method is used, which is to identify the difference between the release of services and goods and intermediate consumption, which is formed from the cost of production. In this case, this calculation is made before the consumption of fixed capital is deducted.

Understanding whether GRP is what, and how itsto determine, it makes sense to pay attention to the formation of this indicator in the production stage. In this case, we are talking about the amount of gross added value that was created through the activities of all resident institutional units located on the economic territory of the region. It is worth noting that in this case, net taxes on products are not taken into account.

Sources used to calculate

The volume of GRP in the CIS countries is calculated using the following sources of information:

- the reporting of the companies concerning realization of services, products and manufacture, and also expenses for release of the goods;

- specialized regional and special sample surveys;

- registers of companies.

If we touch on the topic of registers in more detail, thenit should be noted that they contain various information, including the location of enterprises. It is this information that is used to generate special statistical reporting on key performance indicators of companies in the region.

Production method of calculation

Before moving on to the method itself, it is worthIt should be noted that GRP per capita can be classified as macroeconomic indicators. It can be viewed at several stages: production, income generation and, of course, the use of income.

At the production stage GRP is used to describe the added value that was created by residents in the process of issuing goods and services within the current reporting period.

Taking into account the stage of income generation,it is worth noting that in this case GRP per capita is calculated by summing up the primary income received by residents in the process of producing goods. This amount is distributed among the participants in the production process.

As for calculating GRP at the stageuse of income, it is a matter of reflecting the amount of expenditures of all sectors of the national economy on final accumulation and consumption, as well as net exports of services and goods.

Calculus by distribution

GRP per capita of the local population (refer toregions) can also be calculated at the stage of revenue generation. In this case, this indicator can be defined as the sum of primary incomes, which are subject to distribution among residents directly involved in the production process.

This group includes the following incomes received in the production process:

- Remuneration of hired personnel (asresidents, and non-residents). It is defined as a reward in kind and in cash and paid to hired employees for their work. In this case, all amounts that are accrued to employees are taken into account before taxes on income and other deductions are excluded from wages. Account is taken and deductions of insurance contributions to social funds.

- Gross profit and mixed income, which were received for the right to use borrowed nonfinancial and financial non-productive assets in the process of issuing the goods.

- Net taxes on imports and production,which are incomes of the state. The GRP structure includes this element as well. In this case, in addition to subsidies and taxes on products, the types of taxation that apply to production units as participants in the production process are taken into account.

End-use method

This is another way of calculating the grossa regional product that needs to be considered in order to answer the question "GRP is what?" In this case, it is worth remembering the principle according to which GRP is the sum of expenses of residents aimed at final consumption.

Final consumption means the use of services and goods in order to meet the individual needs of both the population and the collective needs of society.

Expenses related to the finalconsumption include institutional units related to several sectors of the economy: households and various state, as well as commercial organizations that serve their needs.

The conclusion is obvious: in order to get a full picture of the state of the economy of a specific region and the country as a whole, such an indicator as GRP should be taken into account. At the same time, the problem facilitates the presence of several methods for calculating this index, depending on the type of research.