Source: U.S. Bureau of Economic Analysis,Survey of Current Business, September 2000.

http://www.bea.doc.gov/bea/regional/data.htm

*The Relation of Gross State Product (GSP) to Gross Domestic Product (GDP)

GSP is the value added in production by the labor and property located in a state. GSP for a state is derivedas the sum of the GSP originating in all industries in the state.

In concept, an industry's GSP, referred to as its "value added," is equivalent to its gross output (sales orreceipts and other operating income, commodity taxes, and inventory change) minus its intermediate inputs (consumptionof goods and services purchased from other U.S. industries or imported). Thus, GSP is often considered the statecounterpart of the nation's gross domestic product (GDP). In practice, GSP estimates are measured as the sum ofthe distributions by industry and state of the components of gross domestic income -- that is, the sum of the costsincurred (such as compensation of employees, net interest, and indirect business taxes) and the profits earned inproduction. The difference between GDP and gross domestic income is the statistical discrepancy.

Total GSP for the nation, which is derived as the sum of the state estimates, differs from GDP because GSPexcludes the statistical discrepancy, 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, exceptoffice equipment.

For the GSP estimates, private goods-producing industries are defined to consist of agriculture, forestry,and fishing; mining; construction; and manufacturing. Private services-producing industries are defined to consist oftransportation and public utilities; wholesale trade; retail trade; finance, insurance, and real estate; and "services."

*