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Value-subtracting industry

An industry where the value of output is less than that of purchased inputs, so that Value added is negative. This situation can arise in two ways: when the industry concerned is heavily subsidized, either by the government or by cross-subsidization from profitable parts of the same firms; alternatively, when inputs and outputs are valued at prices other than those actually prevailing.

Reference: Oxford Press Dictonary of Economics, 5th edt.