Table of contents list of acronyms
Table 6.8 SHARE OF VALUE ADDED IN TURNOVER
Download 0.77 Mb. View original pdf
|
| Table 6.8 SHARE OF VALUE ADDED IN TURNOVER (% of Turnover Formal Informal Gross Profit 19 12 Plus Labour Payments 10 11 Less Financial Costs -3 -1 Gross Value Added 26 22 Source: Estimated from Survey Data. Therefore, the share of gross value added in turnover of formal units is 26 percent, while it is somewhat lower for informal units at 23 percent. These estimates are close to the assumed share of value added in value of production by autoparts manufacturers in Table 2.12 of 27 percent. Overall, from the sample of vendors we conclude that bulk of the units, both formal and informal, are private limited companies there is wide variation in size of units a high proportion of technical and skilled workers fairly high level of capital-intensity as demonstrated by relatively labour productivity high share of material and electricity costs and reasonably high gross profit margins. Also, formal units perform significantly than informal units both in terms of size and profitability. It must, however, be emphasized that the results need to be interpreted with some caution because of the small size of the sample of 34, out of a total population of over 2200 units. Consequently, the confidence intervals of these estimates are likely to be large. |