Transportation Economic Trends
Contribution of Transportation to the Economy:
Transportation Economic Concepts
What is Gross Domestic Product (GDP)?
- Expenditure approach: Sum of all expenditures on final goods and services, including: personal consumption, government spending and investment, change in private inventories, and exports less imports.
- Production (value-added) approach: Total industry output (sales and other operating income) less the cost of inputs used in production. Alternatively, the sum of employee compensation, taxes on production and imports less subsidies, and gross operating surplus.
- Income approach: Income earned by households (wages, health retirement benefits, interest income, etc.) and firms (profits including royalties from intellectual property rights, etc.)
Transportation-related final demand
- personal consumption expenditures on transportation-related goods and services (motor vehicles and parts; motor vehicle fuels, lubricants, and fluids; and transportation services);
- private domestic investment in transportation structures and equipment;
- government purchases of transportation goods and services;
- net exports (exports minus imports) related to transportation goods and services; and
- change in retailers’ inventories of motor vehicles and parts.