<p>That won't really happen in reality. A sales promotion which runs losses, as in your example, will not mean that the gross value added is negative. The final selling price of the item is the gross value added and that will not typically be negative. So, if an item is sold for 5 dollars then the gross value added is 5 dollars only. No matter if someone in the value chain made losses. 
So, gross value added will never be negative unless and until the final selling price of something is negative. </p>

CC BY-SA 3.0
2016-04-28T06:20:26.120Z
2016-04-28T06:20:26.120Z
Sub-Optimal
<p>Can the Gross Value Added be negative when calculated using the production approach?</p>

CC BY-SA 3.0
2016-04-26T20:38:41.930Z
Can you please add more details to your question? Clearly, in some situations value added is negative. For example, a firm that buys goods for 10 dollars and sells them for 8 dollars has lost money, which means the value added by that firm is negative. Presumably on average, most economic activity is productive, so you'd think than in the aggregate value added is always positive.
Fix.B.
CC BY-SA 3.0
2016-04-28T11:42:28.320Z
Please clarify how you understand Gross Value Added (and what would be "Net Value Added" then)
Alecos Papadopoulos
<macroeconomics>
Can the Gross Value Added be negative?
G N Philippe
# Can the Gross Value Added be negative?

(Asked by: username_0 on 2016-04-26)

Can the Gross Value Added be negative when calculated using the production approach?

**Tags:** macroeconomics
> **Comments:**
> **username_1**: Can you please add more details to your question? Clearly, in some situations value added is negative. For example, a firm that buys goods for 10 dollars and sells them for 8 dollars has lost money, which means the value added by that firm is negative. Presumably on average, most economic activity is productive, so you'd think than in the aggregate value added is always positive.  
> **username_2**: Please clarify how you understand Gross Value Added (and what would be "Net Value Added" then)  

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## 1 answers

### Answer by username_3 on 2016-04-28. Score: 1

That won't really happen in reality. A sales promotion which runs losses, as in your example, will not mean that the gross value added is negative. The final selling price of the item is the gross value added and that will not typically be negative. So, if an item is sold for 5 dollars then the gross value added is 5 dollars only. No matter if someone in the value chain made losses.
So, gross value added will never be negative unless and until the final selling price of something is negative.


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