A New Industrial Statistical Database of UNIDO for Structural Analysis Shyam Upadhyaya Chief Statistician, UNIDO

S. Upadhyaya - INDSTAT2 2 Outline of the presentation UNIDO statistical activities Data dissemination and statistical products INDSTAT2 database for structural analysis Limitation of the database

S. Upadhyaya - INDSTAT2 3 UNIDO statistical activities Collection, compilation and worldwide dissemination of industrial statistics as per mandate of UN Statistics Commission Support to UNIDO research programmes with timely, reliable and internationally comparable statistics Contribution to international statistics community in development of statistical methodology and international standard settings Technical assistance programme for developing countries for capacity building in the field of industrial statistics External data request In-house data request Request for development projects Inter-agency cooperation

S. Upadhyaya - INDSTAT2 4 Data preparation and dissemination Transformation of national data to an international statistical product Quality assurance in terms of relevance, completeness, timeliness and, above all, international comparability Dissemination: 1. Publication of the International Yearbook of Industrial Statistics 2. CD products – INDSTAT4, INDSTAT2 and IDSB 3. Statistical country brief – online data portal statistics

S. Upadhyaya - INDSTAT2 5 Relevance of INDSTAT2 database Many countries adopted later version of ISIC Earlier product INDSTAT3 was discontinued due to sharp decrease of the number of countries reporting data by ISIC rev-2 Different classification versions for different years – comparability problem in historical data series INDSTAT4 presents data by ISIC rev-2 and rev-3 but users found it difficult for comparison in longer time-series A compromised approach – Detail data for recent years (INDSTAT4) and aggregated data for longer series

S. Upadhyaya - INDSTAT2 6 Some data on INDSTAT2 database Number of indicators: 8 Number of manufacturing sectors: 23 At 2-digit level of ISIC rev 3 Number of countries:161 Period (2009 edition): 1963 to updated every year - coverage of period and data items varies by country

S. Upadhyaya - INDSTAT2 7 Data use for structural analysis Share of industry groups in total using different classifications of industries derived from ISIC Agro-industrial sectors Resource based sectors Medium-high and high technology sectors (MHT) ICT goods production sectors Industrial sectors by intensity of energy use: high, moderate, low Analysis of sector shift by countries; intensity of structural change Industrial growth analysis – relation of growth and structural change

S. Upadhyaya - INDSTAT2 8 Share of agro-industrial sectors in total value added of manufacturing by years Source: UNIDO Statistics; INDSTAT2

S. Upadhyaya - INDSTAT2 9 Share of MHT sectors in total value added of manufacturing by years Source: UNIDO Statistics; INDSTAT2

S. Upadhyaya - INDSTAT2 10 Share of high-energy intensive sectors in total value added of manufacturing by years Source: UNIDO Statistics; INDSTAT2

S. Upadhyaya - INDSTAT2 11 Index numbers of the production of motor vehicles in major economies Source: UNIDO Statistics; INDSTAT2

S. Upadhyaya - INDSTAT2 12 Average annual wages per employee in manufacturing sector of Eastern European and CIS countries (Reference period varies between 2005 – 07) Source: UNIDO Statistics; INDSTAT2

S. Upadhyaya - INDSTAT2 13 Some commonly used coefficients for structural change Coefficient of absolute structural change – ranges from 0 to 2/n Integral coefficient of structural change ranges from 0 to 1 Spearman coefficient of rank correlation ranges from -1 to 1 (higher the correlation lower the structural change) Coefficient of diversification ranges from 0 to 1 Notations:s i – share of i-th sector in total d – difference of the value of two periods: 0 base and 1 current period n – number of observations

S. Upadhyaya - INDSTAT2 14 Limitations of INDSTAT database Value data in INDSTAT2 are presented in current prices, both in national currency and US$ using nominal exchange rate, so they cannot be used in time series analysis without deflating Due to the difference of computation method value added may differ from the figures used in national account estimates (census concept, cut-off point in survey, valuation difference etc) Data at 2-digit level are compiled from the earlier database of INDSTAT at 3 and 4-digit level of ISIC. This process involved aggregation, combination, imputation, estimations and so on which may have resulted in deviation of data from the source in varying scales

S. Upadhyaya - INDSTAT2 15 Concluding remarks Despite its limitations INDSTAT2 is a unique statistical product, especially for structural analysis Its coverage in terms of the number of countries and time-span offers a wide range of options for economic research The database provides excellent opportunity to university students not only for investigative works but also to test their own skills of using various statistical methods of data handling, such as treatment with missing data, detecting inconsistent and dubious figures, imputation and preparation of data for analysis Open interaction with users provides the best feedback to quality assurance of statistics produced.

S. Upadhyaya - INDSTAT2 16 Further information on INDSTAT2 is available in Contact address: or