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United Nations Statistics Division CPC Ver.2 General issues.

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Presentation on theme: "United Nations Statistics Division CPC Ver.2 General issues."— Presentation transcript:

1 United Nations Statistics Division CPC Ver.2 General issues

2 2 CPC Ver.2 ProcessProcess ScopeScope Main structureMain structure Link to HSLink to HS Link to ISICLink to ISIC

3 3 CPC Ver.2 – process Followed closely the ISIC revision processFollowed closely the ISIC revision process First two rounds of questionnaires were integrated with ISIC questionnaireFirst two rounds of questionnaires were integrated with ISIC questionnaire Questions on scopeQuestions on scope Main structureMain structure Areas to be reviewedAreas to be reviewed Third questionnaire was sent 6 months after ISIC questionnaireThird questionnaire was sent 6 months after ISIC questionnaire Structure proposalStructure proposal

4 4 CPC Ver.2 - scope CPC has three functions:CPC has three functions: Serve as a “central” classification of productsServe as a “central” classification of products Requires links to other product classifications, such as HS, SITC, BOP, EBOPSRequires links to other product classifications, such as HS, SITC, BOP, EBOPS Provide classification of all outputs of economic activities (production), as defined in the SNAProvide classification of all outputs of economic activities (production), as defined in the SNA Provide definitions of services (reference classification)Provide definitions of services (reference classification)

5 5 CPC Ver.2 - scope What are the implications?What are the implications? Boundary questions for:Boundary questions for: Waste productsWaste products (included, even non-produced, irrespective of value) AssetsAssets (produced assets included as products) To what degree do other classifications influence detail and structure?To what degree do other classifications influence detail and structure? E.g. discussion of softwareE.g. discussion of software

6 6 CPC Ver.2 - scope CPC covers “products”, i.e. the output of economic activitiesCPC covers “products”, i.e. the output of economic activities SNA refers to products as “goods and services”SNA refers to products as “goods and services” Equivalent to the scope of previous versions of the CPCEquivalent to the scope of previous versions of the CPC Problem: there are outputs of economic activities, i.e. “products”, that do not fit the definition of goods or servicesProblem: there are outputs of economic activities, i.e. “products”, that do not fit the definition of goods or services

7 7 Goods: Goods are physical objects for which a demand exists, over which ownership rights can be established and whose ownership can be transferred from one institutional unit to another by engaging in transactions on markets. They are in demand because they may be used to satisfy the needs or wants of households or the community or used to produce other goods or services. The production and exchange of goods are quite separate activities. Some goods may never be exchanged while others may be bought and sold numerous times. The separation of the production of a good from its subsequent sale or resale is an economically significant characteristic of a good that is not shared by a service.

8 8 Services: Services are not separate entities over which ownership rights can be established. They cannot be traded separately from their production. Services are heterogeneous outputs produced to order and typically consist of changes in the conditions of the consuming units realized by the activities of producers at the demand of the consumers. By the time their production is completed they must have been provided to the consumers.

9 9 Problem: “intellectual property products” outputs of a creative process carried out on own accountoutputs of a creative process carried out on own account They are not servicesThey are not services They are not physical objectsThey are not physical objects But: they are productsBut: they are products (“intangible goods” – although this concept doesn’t exist)(“intangible goods” – although this concept doesn’t exist) Example: R&D originalsExample: R&D originals

10 10 Intellectual property products Questions:Questions: 1. Include this type of products in the CPC?1. Include this type of products in the CPC? YesYes 2. Where to place them?2. Where to place them? ??????

11 11 CPC Ver.2 – structure Statement:Statement: “The CPC does not distinguish between goods and services.”“The CPC does not distinguish between goods and services.” However:However: There is a general separation between (transportable) goods in sections 0-4 and services in sections 5-9There is a general separation between (transportable) goods in sections 0-4 and services in sections 5-9 Few exceptions existFew exceptions exist

12 12 CPC – structure Sections 0-4: transportable goods (with HS link)Sections 0-4: transportable goods (with HS link) Sections 5-9: servicesSections 5-9: services (plus constructions)(plus constructions) Where to place the “intangible goods”?Where to place the “intangible goods”? Compromise: group with services that correspond to activities that create themCompromise: group with services that correspond to activities that create them

13 13 CPC Ver.2 - structure Options for overall structure of the CPC:Options for overall structure of the CPC: Group products based on industry of originGroup products based on industry of origin e.g. ISIC basede.g. ISIC based Group products based on demandGroup products based on demand e.g. COICOP basede.g. COICOP based Group products by their characteristicsGroup products by their characteristics used currently in CPCused currently in CPC What options are feasible?What options are feasible? What are the advantages and disadvantages?What are the advantages and disadvantages?

14 14 CPC – industry based structure Advantage:Advantage: Easy link between activity and product dataEasy link between activity and product data Disadvantage:Disadvantage: Link is not always one-to-one and forcing this relationship may result in loss of dataLink is not always one-to-one and forcing this relationship may result in loss of data Multiple industry links for primary productsMultiple industry links for primary products Problem with secondary productsProblem with secondary products

15 15 CPC – demand based structure Does not exist yetDoes not exist yet Could be modeled on a classification like COICOPCould be modeled on a classification like COICOP But: COICOP scope is narrowerBut: COICOP scope is narrower Lack of experience with such a structure makes it not suitable for an international standard right nowLack of experience with such a structure makes it not suitable for an international standard right now

16 16 CPC – current structure Groups products according to their characteristics (“intrinsic nature”)Groups products according to their characteristics (“intrinsic nature”) Groupings often follow industries, but this is not a requirementGroupings often follow industries, but this is not a requirement Product groups often consider analytical useProduct groups often consider analytical use Example: Transport servicesExample: Transport services

17 17 CPC – current structure Example: Transport servicesExample: Transport services In ISIC:In ISIC: breakdown by mode of transport, then by passenger vs. freightbreakdown by mode of transport, then by passenger vs. freight In CPC:In CPC: breakdown by passenger vs. freight, then by mode of transportbreakdown by passenger vs. freight, then by mode of transport

18 18 CPC – ISIC link Products with multiple industry linksProducts with multiple industry links Examples:Examples: Mushrooms (output of growing or gathering)Mushrooms (output of growing or gathering) Oysters (output of aquaculture or fishing)Oysters (output of aquaculture or fishing) Glycerol (output of different chemical processes)Glycerol (output of different chemical processes) Electrical capacitors (electric vs. electronic)Electrical capacitors (electric vs. electronic) Sale of advertising space in print media (different media)Sale of advertising space in print media (different media) Internet access services (different providers)Internet access services (different providers)

19 19 CPC – ISIC link Reasons for multiple links:Reasons for multiple links: Insufficient product detailInsufficient product detail (could be fixed)(could be fixed) One product (with unique characteristics) can be produced by different industriesOne product (with unique characteristics) can be produced by different industries Subdividing these would create “artificial products”; goods not compatible with HSSubdividing these would create “artificial products”; goods not compatible with HS Forcing a single link may result in loss of dataForcing a single link may result in loss of data Depends on application of this link for data collection and displayDepends on application of this link for data collection and display

20 20 CPC – ISIC link Total number of CPC products with multiple links:Total number of CPC products with multiple links: 66 (out of 2730) = 2.5%66 (out of 2730) = 2.5% For most products, a regrouping by industry is possibleFor most products, a regrouping by industry is possible Other problem:Other problem: Secondary products !!!Secondary products !!!

21 21 CPC – HS link CPC provides basic definitions (building blocks) for servicesCPC provides basic definitions (building blocks) for services For goods, the HS provides these building blocks, i.e. each CPC goods subclass is the sum of HS subheadingsFor goods, the HS provides these building blocks, i.e. each CPC goods subclass is the sum of HS subheadings Problem: HS is tailored for international trade and does not reflect all locally produced products in a suitable fashionProblem: HS is tailored for international trade and does not reflect all locally produced products in a suitable fashion

22 22 CPC – HS link Examples:Examples: 1. Sugar cane – grouped with Locust beans; fruit stones and kernels and other vegetable products (including unroasted chicory roots of the variety Cichorium intybus sativum) of a kind used primarily for human consumption, not elsewhere specified or included.1. Sugar cane – grouped with Locust beans; fruit stones and kernels and other vegetable products (including unroasted chicory roots of the variety Cichorium intybus sativum) of a kind used primarily for human consumption, not elsewhere specified or included.

23 23 CPC – HS link Examples:Examples: 2. Software – included in Discs, tapes, solid- state non-volatile storage devices, "smart cards" and other media for the recording of sound or of other phenomena, whether or not recorded, including matrices and masters for the production of discs, but excluding products of Chapter Software – included in Discs, tapes, solid- state non-volatile storage devices, "smart cards" and other media for the recording of sound or of other phenomena, whether or not recorded, including matrices and masters for the production of discs, but excluding products of Chapter 37.

24 24 CPC – HS link Examples:Examples: 3. HS often groups raw and processed agricultural products (which are outputs of different industries)3. HS often groups raw and processed agricultural products (which are outputs of different industries) 4. HS agricultural products often do not distinguish source by animals (e.g. cow milk, vs. goat milk etc.)4. HS agricultural products often do not distinguish source by animals (e.g. cow milk, vs. goat milk etc.) Unlike for services, HS adds a constraint to possible CPC detailUnlike for services, HS adds a constraint to possible CPC detail

25 25 CPC – HS link CPC provides detail beyond HS in a few selected areasCPC provides detail beyond HS in a few selected areas Total: 268 products (of 1501) = 17.8%Total: 268 products (of 1501) = 17.8% Out of which 195 for agriculture/food productsOut of which 195 for agriculture/food products (Proposals for next HS revision are being prepared)(Proposals for next HS revision are being prepared) Other main areas:Other main areas: BooksBooks Petroleum oilsPetroleum oils SoftwareSoftware ToysToys Computer equipmentComputer equipment

26 26 CPC – HS link (and more) In general, CPC has changed with the underlying HS categoriesIn general, CPC has changed with the underlying HS categories For services, CPC provides the detail and other classifications, like EBOPS, use these building blocksFor services, CPC provides the detail and other classifications, like EBOPS, use these building blocks


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