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Gross value added is composed of the volume of sales or expenditure, less intermediate inputs, the growth of value added being determined in accordance with actual resource allocation and actual variation of productivity [9].
Table 6 Composition of value added (percentages).
% of value added in tradable sectors Eurostat Gross value added in agriculture and manufacturing over total gross value added.
For their part, some states are challenging the equalising allocation of value-added tax revenues.
Since we cannot consider allocation of profit, their "real" productivity measured by value added may be lower.
Figure 1 Components of municipal value added.
✓ Value added of all economic sectors (total value added): VAT [103 × BIRR].
Integration of Human habitation can be a value added feature.
Where, x is total output vector [xi ] 23x1, B is allocation co-efficient matrix [bi,j ] 23x23 and v is total value added vector [vj ] 23x1.
This is augmented by a 2.5percentt value added tax on selected goods and services as well as an annual allocation of central government funds.
However, when we calculating the average contribution of all the enterprises in an industry with industrial value added as the weight, the positive and negative values will offset each other, which imply that the growth of productivity attributed to the efficiency of resource allocation would be nearly zero.
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