Construction of the Provincial Accounts System - Phase II

The project for the construction of a system of provincial accounts of Azuay, which was developed by an inter -institutional agreement between the provincial government and the University of Cuenca, presented its first results for seven sectors of activity of the provincial economy. In the second phase of the agreement, information was prepared for thirteen activity sectors. Consequently, this second report is already complete in terms of sectors and, due Sectors From this general reference, it is about interpreting how the provincial economy has behaved in the period. And then, it seeks to find specific explanations for the particular behavior of each of the conventional activity sectors. In this general vision of the Azuaya economy, the fundamental variable for the analysis is that of "added value", so the annual average variation rate of gross value (VAB) is calculated between the initial year and the final year of the period. Finally, an analysis of the variations in the economic structure of the province is presented, measures through the modifications of the percentages of participation of the different activity sectors, calculated for the initial year and for the final year of the report. The calculation of gross added value, for each sector, requires the previous obtaining of gross production and intermediate consumption, as detailed in the chapters that analyze the sector activity. In this article we refer particularly to the aggregate information of the province. It is convenient to expand something about the meaning of the key variable that allows to measure provincial economic behavior. To avoid duplications and other errors, the calculation of production in a given year is done only in terms of the new "value that is added" in the provincial economy; To achieve this data, to the total value of goods and services produced in the Azuayo territory, the value of raw materials and other supplies used in the production process is subtracted. This means that the annual production is measured only by the new value created that, in another dimension, it consists of the paid remuneration to the workers involved in the production, the taxes paid to the government and the benefits obtained by the entrepreneurs or owners of the capital. Also the processed data on aggregate production seek to prevent other distortions, such as the price variation from one year to another: for this, the added value is measured in the prices in force in a base year, in this case the 2000, that is, in constant terms as if inflation had not been presented, which wants to express that the measurement made in 2008 retains the purchasing power that the money had in the year 2000.

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