CHAPTER 3 – Session 9 United Nations Statistics Division/DESA Revision of the Index of Industrial Production (IIP) publication by the UNSD

2 Chapter 3 Summary of chapter:Summary of chapter: This chapter presents:This chapter presents: The various units and classifications in use internationally and recommends the most appropriate type of unit and classification in the compilation of an IIP; andThe various units and classifications in use internationally and recommends the most appropriate type of unit and classification in the compilation of an IIP; and The essential role of the business register is also presented in the context of statistical surveys and the IIP.The essential role of the business register is also presented in the context of statistical surveys and the IIP.

3 Chapter 3 – Recommendations and Feedback General support for the structure and content of chapter 3.General support for the structure and content of chapter 3. Recommendation: The recommended statistical unit to compile the IIP is the establishment.Recommendation: The recommended statistical unit to compile the IIP is the establishment. FEEDBACK suggests this recommendation is supported.FEEDBACK suggests this recommendation is supported.

4 Chapter 3 – Recommendations and Feedback Recommendation: The international reference classification for economic activities, ISIC Rev.4, is the most suitable classification of industries. The Central Product Classification Ver.2 (or its national version developed by countries and fully compatible with the CPC) is to be used to assign products to product groups.Recommendation: The international reference classification for economic activities, ISIC Rev.4, is the most suitable classification of industries. The Central Product Classification Ver.2 (or its national version developed by countries and fully compatible with the CPC) is to be used to assign products to product groups. FEEDBACK -FEEDBACK - How is the outsourcing of industrial production reflected in the definition, scope and calculation of the IIP? In ISIC Rev.4, a manufacturing unit can produce goods or manufacturing services. Therefore the product groups to be considered in the IIP calculation cover also manufacturing services (CPC Division 88). If only output value is used for the product groups, a form of double-counting may occur. [Ralf to provide an example]

5 Chapter 3 – Recommendations and Feedback Recommendation: It is recommended that where the IIP is compiled from statistical surveys that:Recommendation: It is recommended that where the IIP is compiled from statistical surveys that: a business register provides the basis from which a sampling frame is identified;a business register provides the basis from which a sampling frame is identified; a stratified sample survey be used;a stratified sample survey be used; the business register be maintained to ensure it remains as representative as possible and contains current information on its constituents;the business register be maintained to ensure it remains as representative as possible and contains current information on its constituents; countries with a large number of small establishments establish a specific size cut-off and include in the business register only those establishments over a specific size; andcountries with a large number of small establishments establish a specific size cut-off and include in the business register only those establishments over a specific size; and the sample selection is updated each year to coincide with the update of index weights.the sample selection is updated each year to coincide with the update of index weights. FEEDBACKFEEDBACK suggests this recommendation is supported.suggests this recommendation is supported. Should the recommendation include “establish a size cut-off and include in the business register only those establishments over a specific size”?Should the recommendation include “establish a size cut-off and include in the business register only those establishments over a specific size”?

6 Chapter 3 – Recommendations and Feedback Recommendation: It is recommended countries examine opportunities to utilize administrative sources, especially for the purposes of developing and maintaining a sampling frame as well as the data source to reduce response burden.Recommendation: It is recommended countries examine opportunities to utilize administrative sources, especially for the purposes of developing and maintaining a sampling frame as well as the data source to reduce response burden. Feedback – this description on administrative data sources needs to be expanded (this is also relevant to chapter 4 – data sources).Feedback – this description on administrative data sources needs to be expanded (this is also relevant to chapter 4 – data sources).

7 Chapter 3 - Discussion Are there any comments on the following chapter 3 topics:Are there any comments on the following chapter 3 topics: Out-sourcing in the context of the IIP;Out-sourcing in the context of the IIP; Should the recommendation include “establish a size cut-off and include in the business register only those establishments over a specific size”?Should the recommendation include “establish a size cut-off and include in the business register only those establishments over a specific size”? the description on administrative data sources needs to be expanded.the description on administrative data sources needs to be expanded.