Gross value added at factor cost

Définition

Gross value added at factor cost can be derived from value added at basic prices by subtracting other taxes (less sub­sidies) on production.
It represents the amount remaining for distribution out of gross value added after the payment of all taxes on production and the receipt of all subsidies on production.
Thus, despite its traditional name, gross value added at factor cost is not strictly a measure of value added; it is essentially a measure of income and not output.
Gross value added at factor cost is not a concept used in the ESA.