Bottom-up (direct measure)

Description

the internationally preferred approach for compiling regional GDP is to directly measure the local activity of enterprises, and build up regional accounts from this information. The enterprise-level approach is preferred as it directly measures value added. It is also useful analytically as it clearly links the activity of enterprises within a region to the overall economic performance of the region. We compile New Zealand regional GDP statistics using this approach where AES data (or a similar unit level collection) is used. The main alternative to the bottom-up approach is the top-down (or indirect) approach.

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