Value added at constant prices: estimates for Rhodesian manufacturing industries and some observations
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Economic analysis of an empirical nature requires reliable data to fit to the theoretical relationship between the variables under investigation. Absolutely correct statistics are rarely available, but official sources of economic statistics generally present a reasonably useful reference for the economist. One such indicator is the volume index for manufacturing industries. Trends in the actual volume of the various outputs at constant prices are found useful for some economic studies. However, the volume index in several countries goes further than this. It is held to be an indicator of changes in value added or net output at constant factor cost. These factors are, broadly, the labour and capital inputs. The real value added by productive enterprise is significant information to the economist because from this data may be derived such concepts as value added per head and the respective shares of labour and capital — that is the funds at constant factor prices out of which come the rewards for the various productive factors, land, labour, plant and machinery, entrepreneural enterprise, together with payments for capital consumption and taxation.