For any expert in economics, you will know that the GDP figures coming out of anambra and Abia states are not the true reflections of what's happening there and I also think that places like Kano and Lagos have much larger GDP than recorded.
The reason being that it's difficult to get data to estimate GDP values of open markets but estimating that of cooperations and servicing companies is much easier.
It's highly impossible for your to get the GDP value for open markets in Nigeria, you will not be able to evaluate the amount of trade, goods inflow and outflow and financial transaction coming into that market on a daily basis. It's why whenever I see the GDP of states with large open markets like Kano, Lagos, Abia and Anambra, I usually don't believe it because I know that they will not be able to factor what we call the "underground economy" which is mostly what open markets in Nigeria are all about.

Underground Economy
The underground economy (or black market) refers to cash and barter transactions that are not formally recorded in GDP and are often used to support the trade of illegal goods and services (i.e., drugs, weapons, prostitution, etc.). The scale of underground economies varies greatly between nations, and, in some cases, they make up a substantial percentage of a country’s economic output.

The underground market is almost impossible to estimate or value, and due to its illegal nature, it is rarely incorporated into a nation’s published GDP figure. Thus, some nations’ economic output may be understated by GDP. In the case of open markets in Nigeria, you can hardly value the amount of goods a person owns because that information is not available for government to know.
Lagos state government does not know the actual value of goods that goods that a typical Alaba tradet has in his shop or warehouse. So Lagos state cannot factor such into her GDP.
For a place like onitsha, that is almost completely a market, it's hard to even factor the worth of those markets into the GDP.

For example, how do you think you can estimate the GDP value of Ariaria market without know the exactly amount of goods every shop has and the exact financial transaction in that market annually. These data are not available, you can only get a glimpse of them buy going to be banks around Ariaria market but still, it won't be enough to know the GDP contribution of the market.

The best way to know the economic strength of any state is to look at the data in the bank in terms of cash flow. GDP is Nigeria is highly inaccurate because of lack of data and unregulated open market nature.

I don't think you understand economics..

We have GDP gross domestic product which is the total value of goods and services produced in a geographical location.
Now every single economic activities is captured in the GDP. It's also much easier to capture commerce and manufacturing in the GDP than most industries like subsistence Agriculture.

We also have GDP per capita; Which is GDP divided by population: This often determines living standard of a place. It is why Nigeria has a higher GDP than South Africa while they have better salaries and living standard than Nigeria.

NB: there are also many things that determines living standard that the GDP can't capture.

Iamgrey5:
I don't think you understand economics..

okay, teach me

Iamgrey5:
I don't think you understand economics..

give e formula on how you can determine the GDP contribution of for example LADIPO market to Lagos state.

Please kindly tell me how to collate the data from LADIPO goods valuation to be estimate the GDP contribution of that market.

Workch:
give e formula on how you can determine the GDP contribution of for example LADIPO market to Lagos state.

Please kindly tell me how to will collate the data from LADIPO to value it

They don't need to determine the GDP of ladipo alone. They break it down to industry by industry

We have Telecommunications industry

Manufacturing industry

Commercial and Trading you industry

Agricultural industry

Etc.

Iamgrey5:
They don't need to determine the GDP of ladipo alone. They break it down to industry by industry

We have Telecommunications industry

Manufacturing industry

Commercial and Trading you industry

Agricultural industry

Etc.

Dude, you don't know anything about GDP.
Bring it down into industry means that you will need to know the value in terms of financial flow, product and service that this sector provide.

It means that, you need data to be able to evaluate such. Even in the agricultural sector, for states where there huge subsitent farming, and sells of farm products that goes to open market, those service are usually not captured in the GDP.

So how to you Wan to measure the commercial contribution of a market in commerce sector when you don't have data from that market?

You think the figure comes from think air? They collect data, analyze it then conclude. The result depends on the data available

Iamgrey5:
They don't need to determine the GDP of ladipo alone. They break it down to industry by industry

We have Telecommunications industry

Manufacturing industry

Commercial and Trading you industry

Agricultural industry

Etc.

I will give you another example.

To know the how much the telecommunications industry contributes to the GDP, you need data from all telecommunications sectors. You even need the actually value of big telecoms like mt, airtel etc to be able to know how much that sector contributes.
If you do not have data form MTN, you cannot know how much MTN contributes to the GDP of this country.

If you do have data from LADIPO market, you cannot know how much ladipo market contributes to the GDP of lagos state frm the commerce sector.

Workch:
Dude, you don't know anything about GDP.
Bring it down into industry means that you will need to know the value in terms of financial flow, product and service that this sector provide.

It means that, you need data to be able to evaluate such. Even in the agricultural sector, for states where there huge subsitent farming, and sells of farm products that goes to open market, those service are usually not captured in the GDP.

So how to you Wan to measure the commercial contribution of a market in commerce sector when you don't have data from that market?

You think the figure comes from think air? They collect data, analyze it then conclude. The result depends on the data available

@ emboldened

How exactly was this different from what I wrote

I said you look at the industry as whole not a single market.

They look at consumption by evaluating house hold consumption, Government consumption

They look at receipts of sales of from markets and make an estimation on the sales of the markets in that location

I already talked about Agriculture in my first post.

Workch:
I will give you another example.

To know the how much the telecommunications industry contributes to the GDP, you need data from all telecommunications sectors. You even need the actually value of big telecoms like mt, airtel etc to be able to know how much that sector contributes.
If you do not have data form MTN, you cannot know how much MTN contributes to the GDP of this country.

If you do have data from LADIPO market, you cannot know how much ladipo market contributes to the GDP of lagos state frm the commerce sector.

You can do this by carrying out a survey from the business owners themselves.

Do an average in the receipts of transactions from the markets.

GDP is an estimation not a perfect reflection.

Iamgrey5:
@ emboldened

How exactly was this different from what I wrote

I said you look at the industry as whole not a single market.

They look at receipts of sales of from market and make an estimation on the sales of the markets in that location

I already talked about Agriculture in my first post.

How will know the sales of market that leaves an open market in Nigeria? Are you reasoning?

How do you know the value of good and service in LADIPO market? When most of the services are not properly documents, and government do not collect data from traders to value their transactions?

Iamgrey5:
You can do this by carrying out a survey from the business owners themselves.

Do an average in the receipts of transactions from the markets.

GDP is an estimation not a perfect reflection.

okay, so you think Nigerian government usually go to marketz to carry out survey on each shop's financial records and flow of goods and services? 😂

Workch:
How will know the sales of market that leaves an open market in Nigeria? Are you reasoning?

How do you know the value of good and service in LADIPO market? When most of the services are not properly documents, and government do not collect data from traders to value their transactions?

By asking the markets owner directly. The estimation of goods in the market.

Isn't that why we have market leaders.

Iamgrey5:
You can do this by carrying out a survey from the business owners themselves.

Do an average in the receipts of transactions from the markets.

GDP is an estimation not a perfect reflection.

this would babe been the job of the local government if they know what they are doing. But sorry, no one goes to these market to actually know the GDP contribution of these markets. No one knows, the values you see is based on the data available

Iamgrey5:
By asking the markets owner directly. The estimation of goods in the market.

Isn't that why we have market leaders.

you really do not know how open markets in Nigeria run, do you?

Workch:
okay, so you think Nigerian government usually go to marketz to carry out survey on each shop's financial records and flow of goods and services? 😂

They only take a sample size that is statistically going to give them a 90 to 95% accurate rate(level of confidence) of data. They don't have to go the entire markets.

Empirical research in social sciences is carried out like that too.

Iamgrey5:
They only take a sample size that is statistically going to give them a 90 to 95% accurate rate of data. They don't have to go to markets.

Empirical research in social sciences is carried out like that too.

What data are you talking about?

The value of goods in shops and warehouse or the amount of sales they make per day?

What useless statistics can capture that?
We do not have the structure in Nigeria to know this.

Workch:
What data are you talking about?

The value of goods in shops and warehouse or the amount of sales they make per day?

What useless statistics can capture that?
We do not have the structure in Nigeria to know this.

Before rebasing our GDP by the Goodluck in 2013, they went through several survey to capture the True nature of the Nigerian economy.

They carried out research to determine the highest contribution to our GDP.

They simply make an estimation since then largely based on governormnent spending and money in circulation.

Iamgrey5:
Before rebasing our GDP by the Goodluck in 2013, they went through several survey to capture the True nature of the Nigerian economy.

They carried out research to determine the highest contribution to our GDP.

They simply make an estimation since then largely based on governormnent spending and money in circulation.

lol, I do not need all these your statistic to know the value of goods and services coming out of the sector, I can simply look at the VAT to arrive at it.
For open markers lol LADIPO where VAT is not paid, you will never know

Workch:
lol, I do not need all these your statistic to know the value of goods and services coming out of the sector, I ca only look at the VAT to arrive at it.
For open markers lol LADIPO where VAT is not paid, you will never know

look the Nigerian informal sector is big and commercial activities are determined by estimation with the help of traders.

That's what I have been trying to tell you since morning.

Iamgrey5:
I don't think you understand economics..

We have GDP gross domestic product which the total value of goods and services produced in a geographical location.
Now every single economic activities is captured in the GDP. It's also much easier to capture commerce and manufacturing in the GDP than most industries like subsistence Agriculture.

We also have GDP per capita; Which is GDP divided by population: This often determines living standard of a place. It is why Nigeria has a higher GDP than South Africa, they have better salaries and living standard than Nigeria.

NB: there are also many things that determines living standard that the GDP can't capture.

let me ask you can you give me the formula to measure GDP.

Iamgrey5:
look the Nigerian informal sector is big and commercial activities are determined by estimation with the help of traders.

That's what I have been trying to tell you since morning.

There's no way to know it.

Economists don't bother themselves about it because there's no data to work with

You can only work with what you have and not making up fictitious figures. If I import a product and sell without VAT, how do you want to know the market where it ends up and how I sell it?

okeysoninv:
let me ask you can you give me the formula to measure GDP.

GDP = C + I + G + NX

C = consumption

I= investment ( Private and public investment)

G=governormnent spending ( budget)

NX= net export

Just tell us that Anambra GDP is more than Lagos and Abuja

Workch:
There's no way to know it.

Economists don't bother themselves about it because there's no data to work with

You can only work with what you have and not making up fictitious figures. If I import a product and sell without VAT, how do you want to know the market where it ends up and how I sell it?

I am an economist and we do alot of estimations in economics when we are not entirely sure of the figures.

Infact 90% of social sciences is based on estimation because everything we do is empirical research not Experiment.

Iamgrey5:
I am an economist and we do alot of estimations in economics when we are not entirely sure of the figures.

Infact 90% of social sciences is based on estimation because everything we do is empirical research not Experiment.

tell us the formula

Iamgrey5:


GDP = C + I + G + NX

C = consumption

I= investment ( Private and public investment)

G=governormnent spending ( budget)

NX= net export

How will get the consumption and investment figures contributed by LADIPO market?

Workch:
tell us the formula

GDP = C + I + G + NX

C is for consumption

I is for investment

G is governormnent spending i.e budget

NX is net export ( this is should be in the negative for Nigeria)

Nigeria imports more than we export.

Workch:
What data are you talking about?

The value of goods in shops and warehouse or the amount of sales they make per day?

What useless statistics can capture that?
We do not have the structure in Nigeria to know this.

Did Anap polls ask up to 500 thousand out of more than 90 million voters who they will vote for?

Even in the US, they're are open markets and informal dealings not accounted for. GDP is what it is- an estimate.

Workch:
How will get the consumption and investment figures contributed by LADIPO market?

Consumption is hard to Calculate so we just estimate as long as it statically acceptable for the level of confidence.

Investment is much easier.

Iamgrey5:
I don't think you understand economics..

We have GDP gross domestic product which the total value of goods and services produced in a geographical location.
Now every single economic activities is captured in the GDP. It's also much easier to capture commerce and manufacturing in the GDP than most industries like subsistence Agriculture.

We also have GDP per capita; Which is GDP divided by population: This often determines living standard of a place. It is why Nigeria has a higher GDP than South Africa, they have better salaries and living standard than Nigeria.

NB: there are also many things that determine living standard that the GDP can't capture.

How are the activities of the middle men captured? Services are one of the most parts of GDP but are very hard to factor in.

Iamgrey5:


GDP = C + I + G + NX

C = consumption

I= investment ( Private and public investment)

G=governormnent spending ( budget)

NX= net export

you can see that all goods sold in aba and onitsha are categorized under C and I.

Iamgrey5:


Consumption is hard to Calculate so we just estimate as long as it statically acceptable for the level of confidence.

Investment is much easier.

you cannot estimate anything.

You can simply get the consumption of any sector my looking at the VAT coming from there. You cannot get that of open market.

It's unestimatable.

How do you get the investment of an average trader in Onitsha? tell me.