Goal 9: Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation
Target 9.2: Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry's share of employment and gross domestic product, in line with national circumstances, and double its share in least developed countries
Indicator 9.2.1: Manufacturing value added as a proportion of GDP and per capita
Concepts and Definitions
Definition:
Manufacturing value added (MVA) as a proportion of gross domestic product (GDP) is a ratio between MVA and GDP, both reported in constant 2015 USD.
MVA per capita is calculated by dividing MVA in constant 2015 USD by population of a country or area.
Rationale:
MVA is a well-recognized and widely used indicator by researchers and policy makers to assess the level of industrialization of a country. The share of MVA in GDP reflects the role of manufacturing in the economy and a country’s national development in general. MVA per capita is the basic indicator of a country’s level of industrialization adjusted for the size of the economy. One of the statistical uses of MVA per capita is classifying country groups according to the stage of industrial development.
Concepts:
The gross value added measures the contribution to the economy of each individual producer, industry or sector in a country. The gross value added generated by any unit engaged in production activity can be calculated as the residual of the units’ total output less intermediate consumption, goods and services used up in the process of producing the output, or as the sum of the factor incomes generated by the production process (System of National Accounts 2008). Manufacturing refers to industries belonging to the sector C defined by the International Standard Industrial Classification of All Economic Activities, Revision 4 (ISIC Rev.4), or to the sector D defined by the International Standard Industrial Classification of All Economic Activities, Revision 3.1 (ISIC Rev.3.1).
GDP represents the sum of gross value added from all institutional units resident in the economy. For the purpose on comparability over time and across countries MVA and GDP are estimated in terms of constant prices in USD. The current series are given at constant prices of 2015.
Comments and limitations:
Differences may appear due to different versions of System of National Accounts (SNA) or ISIC revisions used by countries.
Methodology
Computation method:
The share of MVA in GDP is calculated as a percentage between of MVA in the total GDP. MVA per capita represents the value of MVA divided by the total population in a given country.
Time series are nowcasted based on Boudt et al. (2009). Regional, global aggregation of direct summation of country values within the country groups. Minor differences may arise due to 1) exchange rates for conversion to USD 2) different base years used for constant price data 3) methods for recent period estimation and 4) different versions of SNA and ISIC revisions used by countries.
Data Sources
Description:
UNIDO maintains MVA database. Figures for updates are obtained from National Accounts Main Aggregates Database produced by the United Nations Statistics Division (UNSD) and from official publications.
Collection process:
The MVA and GDP country data are collected through a National Accounts Questionnaire (NAQ) sent and processed by UNSD. Missing or inconsistent values are verified with national sources and World Development Indicators (WDI). The preference is given to the data from national sources. Population data are obtained from the UN DESA Population Division.
Data Availability
Description:
Data are available for more than 200 economies.
Time series:
Data for this indicator are available as of 2000 in the UN Global SDG Database, but longer time series are available in the UNIDO MVA database.
Data Providers
UNSD National Accounts Main Aggregates Database based on data from National statistical offices (NSOs)
Data Compilers
United Nations Industrial Development Organization (UNIDO)
References
System of National Accounts 2008
UNSD National Accounts Main Aggregates Database
UN DESA World Population Prospects
International Standard Industrial Classification of All Economic Activities, Revision 3.1 (ISIC Rev.3.1)
International Standard Industrial Classification of All Economic Activities, Revision 4 (ISIC Rev.4)