QuERI data reflects “Gross Output” of industry -- a broader concept that is closer to company sales than “Value-Added,” which shows only salaries, wages, profits and incidental taxes and is used to calculate GDP. Gross Output approximates total sales, or production, of an industry. Gross Output is significantly more than GDP, as it double counts production of other industries. Developed countries tend to have gross output ratios to GDP of between 1.8 and 2.4, while developing countries, especially those with significant export sectors, may have ratios significantly greater than 3 (sometimes as great as 4, or slightly more). Some countries, such as China, may show in official statistics only the value-added and purchases made by these companies. Other inputs are supplied by companies buying the products or imported. Export values tend to reflect total value of the finished products. In cases where exports are greater than government data on gross output, gross output are adjusted up to slightly greater than the total value of exports.
Government data for Gross Output is often a year out of date, or excludes data on key industrial or service sectors due to lack of available survey data. QuERI fills in estimates for these industries based on cross-country models using available information on international trade, as well as information collected from other countries at a similar stage of development. Production data for manufacturing relies upon UNIDO ISIC 3 data sources, while data on services as well as primary products (agriculture and mining) comes from UN SNA data sources.
NAICS 6 Production Data is derived using country-adjusted-detailed IO model estimates of market demand at the 6 digit NAICS detail combined with NAICS 6 estimates of imports and exports: Production = Market Demand – Imports + Exports. Production data is adjusted to be consistent with UNIDO ISIC 6 and UN SNA data.