Net value added at factor cost is the sum total of all the factor payments. It is the result of factors of production that residents get in the form of wages, salaries, dividends, etc. Since value-added by the joint effort of factors of production is distributed among factors as factor incomes. The sum of factor payments in an economy is equal to National income. Factor income is income received from the factors of production and factor payments is the payments made for the factors of other economies, the difference between the two is net factor income from abroad.