1. International Recommendations for Industrial Statistics (IRIS) Workshop on Economic Statistics and Informal Sector UN Statistics Division/ESCAP Teheran, 10-13 November 2007

2. International Recommendations for Industrial Statistics (IRIS) Outline of presentation 1. Background 2. Need for revision of IRIS 3. Main recommendations a. Scope and coverage b. Statistical units c. Treatment of ancillary activities d. Data items e. Valuation f. Data items for international reporting Annual Annual Quarterly Quarterly

3. 1. Background Since 1950s, UN has published international recommendations – to establish a coherent and uniform measurement of industrial activities – 1953, 1960, 1968 and 1983 Since 1950s, UN has published international recommendations – to establish a coherent and uniform measurement of industrial activities – 1953, 1960, 1968 and 1983 UNSC in 2006 reviewed the industrial statistics and endorsed the proposal for revision of IRIS. UNSC in 2006 reviewed the industrial statistics and endorsed the proposal for revision of IRIS. Expert Group Constituted to guide the revision which met in Expert Group Constituted to guide the revision which met in  Sept 2005 – considered proposals for revision and  July 2007 – considered the draft IRIS

4. 2. Need for revision Some important factors which necessitated revision are: 1993 SNA update 1993 SNA update Units undertaking ancillary activities treated as a separate establishment in some specific circumstances,Units undertaking ancillary activities treated as a separate establishment in some specific circumstances, Additional element for the measure of COE like ‘employees stock option’Additional element for the measure of COE like ‘employees stock option’ Treatment of goods sent abroad for processing,Treatment of goods sent abroad for processing, Changes in terminology and classification of assets,Changes in terminology and classification of assets, Capitalisation of database development, and capitalisation of R&D expendituresCapitalisation of database development, and capitalisation of R&D expenditures Revision of International Standard Industrial Classification of all economic activities (ISIC Rev. 4) and Central Product Classification (CPC Ver. 2). Revision of International Standard Industrial Classification of all economic activities (ISIC Rev. 4) and Central Product Classification (CPC Ver. 2). Consistency with changes in concepts, definition and terminology in publications and regulations of other international organisations. For example, revision in the IMF manual on BOP, EU regulations on statistical units, structural business statistics etc. Consistency with changes in concepts, definition and terminology in publications and regulations of other international organisations. For example, revision in the IMF manual on BOP, EU regulations on statistical units, structural business statistics etc.

5. 2. Need for revision Cont. Inclusion of aspects of globalisation of the industrial production process including ‘outsourcing’ and use of e-ecommerce, Inclusion of aspects of globalisation of the industrial production process including ‘outsourcing’ and use of e-ecommerce, Efforts of countries to minimise the differences between the concepts of ‘census value added’ and ‘national account value added’, Efforts of countries to minimise the differences between the concepts of ‘census value added’ and ‘national account value added’, Change in valuation of industrial output to basic prices in accordance with the SNA valuation principle, Change in valuation of industrial output to basic prices in accordance with the SNA valuation principle,

6. 2. Need for revision Cont. Extension of the link between the economy and the environment by extending the coverage of the data items to include the use of natural resources like energy, water, mineral, generation of solid waste and waste water and by-products, Extension of the link between the economy and the environment by extending the coverage of the data items to include the use of natural resources like energy, water, mineral, generation of solid waste and waste water and by-products, Experience of countries both in developing an industrial statistics system and conducting an integrated system of annual and infra-annual industrial inquiries adapted to the needs of NA and the measurement of industrial sector for the economy as a whole Experience of countries both in developing an industrial statistics system and conducting an integrated system of annual and infra-annual industrial inquiries adapted to the needs of NA and the measurement of industrial sector for the economy as a whole

7. 3a. Scope of industrial sector Economic activities included in terms of ISIC Rev. 4 are: Economic activities included in terms of ISIC Rev. 4 are: Mining and quarrying (section B)Mining and quarrying (section B) Manufacturing (section C)Manufacturing (section C) Electricity, gas, steam and air conditioning supply (section D), andElectricity, gas, steam and air conditioning supply (section D), and Water supply; sewerage, waste management and remediation activities (section E)Water supply; sewerage, waste management and remediation activities (section E)  (Scope has been broadened as compared to the 1983 recommendations with inclusion of sewerage, waste management and remediation activities) Industrial activities in international waters, such as the operation of petroleum and natural gas wells, should be included if these activities are subject to the laws, regulations and control of the country concerned. Industrial activities in international waters, such as the operation of petroleum and natural gas wells, should be included if these activities are subject to the laws, regulations and control of the country concerned.

8. 3a. Scope of Manufacturing Manufacturing Includes the physical or chemical transformation of materials, substances, or components into new products. Includes the physical or chemical transformation of materials, substances, or components into new products. Substantial alteration, renovation or reconstruction of goods is generally considered to be manufacturing. Substantial alteration, renovation or reconstruction of goods is generally considered to be manufacturing. Assembly of the component parts of manufactured products is considered manufacturing. This includes the assembly of manufactured products from either self- produced or purchased components Assembly of the component parts of manufactured products is considered manufacturing. This includes the assembly of manufactured products from either self- produced or purchased components

9. 3a. Scope of Manufacturing Manufacturing Specialized maintenance and repair of industrial, commercial and similar machinery and equipment is included in manufacturing. However, the repair of computers and personal and household goods and the repair of motor vehicles are not included in this section. Specialized maintenance and repair of industrial, commercial and similar machinery and equipment is included in manufacturing. However, the repair of computers and personal and household goods and the repair of motor vehicles are not included in this section. The recovery of waste - the processing of waste into secondary raw materials - though may involve, physical or chemical transformations, is not considered to be a part of manufacturing. The recovery of waste - the processing of waste into secondary raw materials - though may involve, physical or chemical transformations, is not considered to be a part of manufacturing.

10. 3a. Scope of Manufacturing Manufacturing The boundaries of manufacturing and the other activities can be somewhat blurry. As a general rule, the activities in the manufacturing section involve the transformation of materials into new products. The boundaries of manufacturing and the other activities can be somewhat blurry. As a general rule, the activities in the manufacturing section involve the transformation of materials into new products. Some activities, although sometimes involving transformation processes, are not classified as manufacturing. They include: Some activities, although sometimes involving transformation processes, are not classified as manufacturing. They include: Logging - classified in Section A (Ag, forestry & fishing)Logging - classified in Section A (Ag, forestry & fishing) Construction of structures and fabricating operations performed at the site of construction - classified in section F (construction)Construction of structures and fabricating operations performed at the site of construction - classified in section F (construction) Activities of breaking bulk and redistribution in smaller lots, including packaging, repackaging, or bottling products; mixing paints to customer order; and cutting metals to customer order, produce a modified version of the same product are classified to section G (wholesale and retail trade; repair of motor vehicles and motorcyclesActivities of breaking bulk and redistribution in smaller lots, including packaging, repackaging, or bottling products; mixing paints to customer order; and cutting metals to customer order, produce a modified version of the same product are classified to section G (wholesale and retail trade; repair of motor vehicles and motorcycles

11. Boundary between Mfg and Wholesaling Outsourcing Principal unit (principal) contracts another production unit (contractor) to carry out specific aspects of the production activity of the principal, in whole or in part in the production of a good or a service. Principal unit (principal) contracts another production unit (contractor) to carry out specific aspects of the production activity of the principal, in whole or in part in the production of a good or a service. It should be noted that the activity classification of the contractor does not change with the outsourcing but that of the principal is very much affected by the nature and extent of the outsourcing It should be noted that the activity classification of the contractor does not change with the outsourcing but that of the principal is very much affected by the nature and extent of the outsourcing

12. Boundary between Mfg and Wholesaling Trend of outsourcing the mfg activities has been growing recently. Criteria for the classification of the principal need to be clarified to ensure international consistency in its classification. Trend of outsourcing the mfg activities has been growing recently. Criteria for the classification of the principal need to be clarified to ensure international consistency in its classification. Classification of the principal should be based on its ownership of the physical input materials Classification of the principal should be based on its ownership of the physical input materials

13. Boundary between Mfg and Wholesaling 1. Outsourcing of support functions Principal carries out the core production process but outsource certain support functions, such as accounting or computer services, to the contractor.Principal carries out the core production process but outsource certain support functions, such as accounting or computer services, to the contractor. In such a case, the principal remains classified to the same ISIC class that represents its core production process.In such a case, the principal remains classified to the same ISIC class that represents its core production process. The contractor is classified to the specific support activity it is carrying out, e.g. ISIC class 6920 (Accounting, bookkeeping and auditing activities; tax consultancy) or 6202 (Computer consultancy and computer facilities management).The contractor is classified to the specific support activity it is carrying out, e.g. ISIC class 6920 (Accounting, bookkeeping and auditing activities; tax consultancy) or 6202 (Computer consultancy and computer facilities management).

14. Boundary between Mfg and Wholesaling 2. Outsourcing of part of the production process The principal outsources a part of the production process to the contractor.The principal outsources a part of the production process to the contractor. The principal owns the (material) inputs to be transformed by the contractor and thereby has ownership over the final outputs.The principal owns the (material) inputs to be transformed by the contractor and thereby has ownership over the final outputs. The principal is to be classified as if it were carrying out the complete production process.The principal is to be classified as if it were carrying out the complete production process. The contractor is classified according to the portion of the production process that it is undertaking. In case of the transformation of a good, the contractor is classified in the same or separate ISIC category.The contractor is classified according to the portion of the production process that it is undertaking. In case of the transformation of a good, the contractor is classified in the same or separate ISIC category.

15. Boundary between Mfg and Wholesaling 2. Outsourcing of the complete production process Outsourcing of mfg activities to contractor whereby the principal does not physically transform the goods at the location of its unit: Outsourcing of mfg activities to contractor whereby the principal does not physically transform the goods at the location of its unit: (a) Principal owns the material inputs and has economic ownership of the outputs, Principal is classified to section C (manufacturing), specifically to the classification category that corresponds to the complete (outsourced) manufacturing activity.Principal is classified to section C (manufacturing), specifically to the classification category that corresponds to the complete (outsourced) manufacturing activity. Contractor is classified to section C (manufacturing), specifically to the classification category that corresponds to the mfg activity performed by the contractor.Contractor is classified to section C (manufacturing), specifically to the classification category that corresponds to the mfg activity performed by the contractor.

16. Boundary between Mfg and Wholesaling 2. Outsourcing of the complete production process Outsourcing of mfg activities to contractor whereby the principal does not physically transform the goods at the location of its unit: Outsourcing of mfg activities to contractor whereby the principal does not physically transform the goods at the location of its unit: (b) Principal has the production done by others, but does not own the material inputs, Principal is classified to section G (wholesale and retail trade; repair of motor vehicles and motorcycles).Principal is classified to section G (wholesale and retail trade; repair of motor vehicles and motorcycles). Contractor is classified to section C (manufacturing), specifically to the classification category that corresponds to the mfg activity performed by the contractor.Contractor is classified to section C (manufacturing), specifically to the classification category that corresponds to the mfg activity performed by the contractor.

17. 3a. Coverage of industrial activities In conformity with the 1993 SNA production boundary all units engaged in economic activities within the scope should be covered. In conformity with the 1993 SNA production boundary all units engaged in economic activities within the scope should be covered.  Units of all sizes (with and without fixed locations) and  Units of all types of ownership including the govt. and household units Household unincorporated enterprises Household unincorporated enterprises Goods produced by households engaging in industrial activities for own consumption should also be covered. Goods produced by households engaging in industrial activities for own consumption should also be covered.

18. 3a. Coverage of industrial sector cont. 3a. Coverage of industrial sector cont. Departments, establishments and similar units in general Govt. should be included if they are mainly engaged in production of goods and services within the scope and identifiable by accounting records kept by them. Departments, establishments and similar units in general Govt. should be included if they are mainly engaged in production of goods and services within the scope and identifiable by accounting records kept by them.  Some of units may not be operating for profit, or  May not dispose of their output in the market. Produce of such units may be sold at prices below cost of production because of govt policy. Govt. units may furnish goods and services to itself of a kind provided by privately owned establishments – printing and publishing services, ammunitions, etc.Govt. units may furnish goods and services to itself of a kind provided by privately owned establishments – printing and publishing services, ammunitions, etc. All types of units not necessarily covered through the same survey instrument. All types of units not necessarily covered through the same survey instrument.

19. 3a. Coverage of industrial sector cont. 3a. Coverage of industrial sector cont. Actual enumeration of establishments in the various activities will in practice vary according to the Actual enumeration of establishments in the various activities will in practice vary according to the Frequency with which the data are required Frequency with which the data are required Difficulty of obtaining them, Difficulty of obtaining them, Existence of alternative sources and the resources available to the statistical authorities. Existence of alternative sources and the resources available to the statistical authorities. Recommended coverage may be attained by a complete enumeration of relevant establishments or by using sample surveys. Recommended coverage may be attained by a complete enumeration of relevant establishments or by using sample surveys.  The method of enumeration chosen will depend on the circumstances in each country.

20. 3b. Statistical unit 1993 SNA recommends establishment as the most appropriate statistical unit (SU) for production and employment data 1993 SNA recommends establishment as the most appropriate statistical unit (SU) for production and employment data Countries are encouraged to use establishment as a SU for industrial statisticsCountries are encouraged to use establishment as a SU for industrial statistics Choice of establishment vs enterprise as SU reflects balancing of data availability against homogeneity of economic activity. Choice of establishment vs enterprise as SU reflects balancing of data availability against homogeneity of economic activity. Using establishment as a unit enablesUsing establishment as a unit enables  Homogeneity in the measurement of the economic activity  More accurate presentation of regional economic reality Choice of SU may be guided by factors such as purpose of study, the availability and quality of requisite data, therefore, enterprise can also be used as SU Choice of SU may be guided by factors such as purpose of study, the availability and quality of requisite data, therefore, enterprise can also be used as SU In majority of cases establishment and the enterprise are same except in case of multi-establishment enterprises. In majority of cases establishment and the enterprise are same except in case of multi-establishment enterprises.

21. 3c. Treatment of Ancillary activities A productive activity undertaken with the sole purpose of producing services for intermediate consumption within the same enterprise is defined as an ancillary activity. Examples are record keeping, personnel management, warehousing etc A productive activity undertaken with the sole purpose of producing services for intermediate consumption within the same enterprise is defined as an ancillary activity. Examples are record keeping, personnel management, warehousing etc Ancillary activities are integrated with the establishments they support. This approach depicts the production process as it is performed but has the following disadvantages Ancillary activities are integrated with the establishments they support. This approach depicts the production process as it is performed but has the following disadvantages Not recognized by its own activity, structural decomposition of GDP by economic activities not depicted correctly, andNot recognized by its own activity, structural decomposition of GDP by economic activities not depicted correctly, and Regional GDP can not be compiled accurately when the ancillary unit and the establishments it serves are located in different regional economiesRegional GDP can not be compiled accurately when the ancillary unit and the establishments it serves are located in different regional economies

22. 3c. Treatment of Ancillary activities cont. Units undertaking ancillary activities to be treated as an establishment in certain cases Enterprise in which different kinds of activities undertaken by it or either horizontally or vertically integrated; Enterprise in which different kinds of activities undertaken by it or either horizontally or vertically integrated; When an establishment undertaking ancillary activities is statistically observable, i.e. records of its transactions are readily available, and When an establishment undertaking ancillary activities is statistically observable, i.e. records of its transactions are readily available, and When the ancillary units are in a geographical location different from the establishments they serve. When the ancillary units are in a geographical location different from the establishments they serve. Such an establishment should be classified according to its own principal activity. Such an establishment should be classified according to its own principal activity.

23. 3c. Treatment of Ancillary activities cont. Output of ancillary establishment Output of ancillary establishment should be derived on sum of cost basis i.e. all costs of its production including the cost of the capital used. Output of ancillary establishment should be derived on sum of cost basis i.e. all costs of its production including the cost of the capital used. Output deemed to be market output when the parent enterprise is a market enterprise and non- market otherwise. Output deemed to be market output when the parent enterprise is a market enterprise and non- market otherwise. Output of the ancillary unit is treated as intermediate consumption of the establishments it serves and should be allocated to them using an appropriate indicator such as their value added, output or employment. Output of the ancillary unit is treated as intermediate consumption of the establishments it serves and should be allocated to them using an appropriate indicator such as their value added, output or employment.

24. 3d. Data items Characteristics of statistical units LocationLocation Type of economic organisationType of economic organisation Type of legal organisation and ownershipType of legal organisation and ownership Size (in terms of persons employed)Size (in terms of persons employed) Recommended size classes: (1-9, 10-19, 20-49, 50-249, 250 + ) Kind-of-activityKind-of-activity Type of unitType of unit Period of operationPeriod of operation

25. 3d. Data items cont. Employment (by gender) No. of persons employedNo. of persons employed  Working proprietors, Unpaid FW, employees  Employees engaged in own-account production of intellectual property products (software & database, R&D, mineral exploration and evaluation, entertainment, literary and artistic originals)  Employees engaged in own account fixed asset formation and construction) Average number of persons employedAverage number of persons employed Hours workedHours worked Leased employeesLeased employees

26. 3d. Data items cont. Compensation of employees in cash and in kind Additional element pursuant to 1993 SNA revision Stock options (income in kind) Employer giving employee an option to buy stocks (shares) at some future date at a given price (strike/exercise price) subject to certain conditions (employee is still on the enterprise pay roll).Employer giving employee an option to buy stocks (shares) at some future date at a given price (strike/exercise price) subject to certain conditions (employee is still on the enterprise pay roll). Employee may not exercise the option:Employee may not exercise the option: Share price is now lower than his option priceShare price is now lower than his option price No longer in the employment of the companyNo longer in the employment of the company The ‘grant date’ is when the option is provided, the ‘vesting date’ is the earliest date when the option can be exercised (or lapses)The ‘grant date’ is when the option is provided, the ‘vesting date’ is the earliest date when the option can be exercised (or lapses) Value of the stock option may be estimated as the difference between the market price and the stock price at vesting date or using using a stock option pricing model.Value of the stock option may be estimated as the difference between the market price and the stock price at vesting date or using using a stock option pricing model.

27. 3d. Data items cont. Other expenditures Cost of material, parts and supplies except gas, fuels and electricity (purchased form other enterprises and delivered by the other establishments of the same enterprise) Cost of material, parts and supplies except gas, fuels and electricity (purchased form other enterprises and delivered by the other establishments of the same enterprise) Cost of gas, fuels and electricity purchased Cost of gas, fuels and electricity purchased Cost of water and sewerage services Cost of water and sewerage services Purchase of services except rental Purchase of services except rental Cost of industrial services purchased and also delivered by other establishments of the same enterpriseCost of industrial services purchased and also delivered by other establishments of the same enterprise Cost of non-industrial services purchased and also delivered by other establishments of the same enterpriseCost of non-industrial services purchased and also delivered by other establishments of the same enterprise Purchase of goods and services for resale in the same condition as received Purchase of goods and services for resale in the same condition as received Rental payments Rental payments Non-life insurance premiums payable on establishment property Non-life insurance premiums payable on establishment property

28. 3d. Data items cont. Data items on Quantity Quantity of individually important materials and suppliesQuantity of individually important materials and supplies Quantity of gas, fuels purchasedQuantity of gas, fuels purchased Quantity of electricity (Kwh) Quantity of electricity (Kwh)  Purchased  Generated  Sold Total energy consumed (tera joules)* Total energy consumed (tera joules)* Cost of water Cost of water  Purchased  Abstracted for own use  Sold Total water used Total water used Quantity of waste water Quantity of waste water  Treated on site prior to discharge  Discharged without being treated

29. 3d. Data items cont. Sales/shipments and other revenues Sales/shipment of goods produced Sales/shipment of goods produced Sales/shipment of goods and services purchased for resale in the same condition as received Sales/shipment of goods and services purchased for resale in the same condition as received Receipts for industrial work done Receipts for industrial work done Other receipts Other receipts Value of own account fixed assets* Value of own account fixed assets* E-commerce sale/value of shipment/receipt for services and other revenues E-commerce sale/value of shipment/receipt for services and other revenuesQuantity Quantity of individually important products Quantity of individually important products (UN list of Industrial Products) (UN list of Industrial Products)

30. 3d. Data items cont. Inventories Capital formation Dwellings Dwellings Other buildings and structures Other buildings and structures Machinery and equipment Machinery and equipment Transport equipmentTransport equipment ICT equipmentICT equipment Other machinery and equipmentOther machinery and equipment Intellectual property products Intellectual property products Computer software and databaseComputer software and database R&DR&D Mineral exploration and evaluationMineral exploration and evaluation Entertainment, literary and artistic originals Entertainment, literary and artistic originals OthersOthersOrders New orders received New orders received Unfilled orders during the reference period Unfilled orders during the reference period Environmental protection expenditures Environmental protection expenditures

31. 3d. Data items cont. Environmental protection expenditures Environmental protection groups together all actions and activities that are aimed at the prevention, reduction and elimination of pollution as well as any other degradation of the environment. This includes measures taken in order to restore the environment after it has been degraded due to the pressures from human activitiesEnvironmental protection groups together all actions and activities that are aimed at the prevention, reduction and elimination of pollution as well as any other degradation of the environment. This includes measures taken in order to restore the environment after it has been degraded due to the pressures from human activities As environmental protection is prime objective, actions and activities which have a favourable impact on the environment but which serve other goals do not come under environmental protection. As environmental protection is prime objective, actions and activities which have a favourable impact on the environment but which serve other goals do not come under environmental protection. Excluded are activities from field of environmental protection, which while beneficial to environment primarily satisfy technical needs or the internal requirements for hygiene or security of an enterprise. Excluded are activities from field of environmental protection, which while beneficial to environment primarily satisfy technical needs or the internal requirements for hygiene or security of an enterprise.

32. 3e. Valuation Value added at basic prices (preferred) Value added at basic prices (preferred) Situations where it is difficult to segregate taxes and subsidies on products and production - Value added at factor cost (second best option) Situations where it is difficult to segregate taxes and subsidies on products and production - Value added at factor cost (second best option) Total value added vs Census value added National account value added (total value added) recommended. National account value added (total value added) recommended. Census vale added optional - if countries desire to maintain their earlier time series Census vale added optional - if countries desire to maintain their earlier time series

33. 3f. Data items for International Reporting Annual statistics 3f. Data items for International Reporting Annual statistics Data itemLevel of details Reporting level (in terms of ISIC Rev. 4) Time-lag After close of yr Demography Number of enterprises By economic activity and size class 3-digit by economic activity 1-digit level for size class distribution 18 months Employment Total number of persons employed --do------do---18 months Total number of employees --do-----do---18 months

34. 3f. Data items for International Reporting Annual statistics 3f. Data items for International Reporting Annual statistics Data itemLevel of details Reporting level Time-lag Compensation of employees Wages and salaries in cash and in kind of employees By economic activity 3-digit level of ISIC, Rev.4 18 months Output Gross output at basic prices By economic activity 3-digit level of ISIC, Rev.4 18 months Value added Total value added at basic prices By economic activity 3-digit level of ISIC, Rev.4 18 months Gross fixed capital formation 18 months

35. 3f. Data items for International Reporting Annual statistics 3f. Data items for International Reporting Annual statistics Data itemLevel of details Reporting level Time- lag Environment Environmental protection expenditure By economic activity 3-digit level of ISIC, Rev.4 18 months Total energy consumed (terajoules) By economic activity 3-digit level of ISIC, Rev.4 18 months Total water used (cubic meters) By economic activity 3-digit level of ISIC, Rev.4 18 months

36. 3f. Data items for International Reporting Quarterly statistics 3f. Data items for International Reporting Quarterly statistics Data itemLevel of details Reporting level Time- lag Employment Total number of persons employed By economic activity 2-digit level of ISIC, Rev.4 3 months Total number of employees By economic activity 2-digit level of ISIC, Rev.4 3 months Compensation of employees Wages and salaries in cash and in kind of employees By economic activity 2-digit level of ISIC, Rev.4 3 months Orders New orders received --- do --- - -- do --- Unfilled orders --- do --- --- do --- 3 months Index of industrial production 2-digit level3 months

37. Two basic sources for economic data (a) Administrative sources: Administrative processes are set up in response to legislation and regulation. Each regulation results in a register of the institutional units – enterprises, persons, etc. – bound by that regulation and in data resulting from application of the regulation. The register and data are referred to collectively by the statistical office as an administrative source Main advantages of the administrative source Main advantages of the administrative source Complete coverage of the concerned population;Complete coverage of the concerned population; Avoidance of response burden: the responding units make available the information as part of the administrative procedure;Avoidance of response burden: the responding units make available the information as part of the administrative procedure; Cheaper for the statistical office to acquire data from an administrative source than to conduct a survey;Cheaper for the statistical office to acquire data from an administrative source than to conduct a survey; Negligible non-response;Negligible non-response; No sampling errors; andNo sampling errors; and Data reported may be more accurate because of intense data checks by administrative authorities.Data reported may be more accurate because of intense data checks by administrative authorities. Data Sources

38. Main disadvantages of the administrative source Discrepancy between administrative and statistical concepts, Discrepancy between administrative and statistical concepts, Poor integration with other data of the statistical systems. AUs do not correspond to SUs; even if does matching problem can prevent from using them. Poor integration with other data of the statistical systems. AUs do not correspond to SUs; even if does matching problem can prevent from using them. Risks with respect to stability: Administrative processes are subject to change in response to new legislation - may cause systematic bias. Risks with respect to stability: Administrative processes are subject to change in response to new legislation - may cause systematic bias. Data may become available with unacceptable delay Data may become available with unacceptable delay Legal constraints with respect to access and confidentiality Legal constraints with respect to access and confidentiality Privately controlled administrative data sources – can serve as an important supplement to official statistics – should be thoroughly checked for coverage and quality and considered for use only when found to be of acceptable quality. Data Sources contd.

39. (b) Statistical surveys Both, the census and the sample survey techniques are used for collecting economic data. Both, the census and the sample survey techniques are used for collecting economic data. Sample survey is less costly way of data collection of precision with high frequency Sample survey is less costly way of data collection of precision with high frequency Disadvantages of survey approach Resource intensive (both financial and manpower), Resource intensive (both financial and manpower), Additional respondent burden, Additional respondent burden, Higher non-response rates and sampling errors. Higher non-response rates and sampling errors. Respondents may not trust the confidentiality clause. Respondents may not trust the confidentiality clause. Data Sources contd.

40. Two types surveys (i) Enterprise Survey Sampling frame of enterprises engaged in relevant economic activities – from current up- to-date BR, is a prerequisite Sampling frame of enterprises engaged in relevant economic activities – from current up- to-date BR, is a prerequisite For countries with no BR, list of enterprises drawn from EC conducted in the past For countries with no BR, list of enterprises drawn from EC conducted in the past Depending upon the source of the sampling frame surveys may also be classified as either list-based or area-based. Depending upon the source of the sampling frame surveys may also be classified as either list-based or area-based. In list-based survey the initial sample is selected from a pre-existing list of enterprises,In list-based survey the initial sample is selected from a pre-existing list of enterprises, In an area-based survey the initial sampling units are a set of geographical areas. After one or more stages of selection, a sample of areas is identified within which enterprises or households are listed. From this list, the sample is selected and data collected.In an area-based survey the initial sampling units are a set of geographical areas. After one or more stages of selection, a sample of areas is identified within which enterprises or households are listed. From this list, the sample is selected and data collected. Data Sources contd.

41. Two types surveys Mixed household-enterprise surveys Sample of households is selected Sample of households is selected Each household is asked whether any of its members own and operate an unincorporated enterprise. Each household is asked whether any of its members own and operate an unincorporated enterprise. The list of enterprises thus compiled is used as the basis for selecting the enterprises from which desired data are finally collected. The list of enterprises thus compiled is used as the basis for selecting the enterprises from which desired data are finally collected. Mixed household-enterprise surveys are useful to cover only unincorporated (or household) enterprises which are numerous and cannot be easily registered. Mixed household-enterprise surveys are useful to cover only unincorporated (or household) enterprises which are numerous and cannot be easily registered. Data Sources contd.

42. For complete coverage of the industrial activity, data collection strategy should be based on an integrated approach covering in principle all production units across all class sizes including micro and small enterprises. For complete coverage of the industrial activity, data collection strategy should be based on an integrated approach covering in principle all production units across all class sizes including micro and small enterprises. The legal organisation (incorporated or unincorporated), size (from large to small and micro enterprises) and the ownership pattern (public sector, privately owned and foreign controlled) of units within the scope of the industrial statistics differ significantly. The legal organisation (incorporated or unincorporated), size (from large to small and micro enterprises) and the ownership pattern (public sector, privately owned and foreign controlled) of units within the scope of the industrial statistics differ significantly. At one end of the spectrum are the corporate units which are incorporated under the statute of a country and are comparatively large, while at the other end are the unincorporated enterprises characterised by low level of organisation.At one end of the spectrum are the corporate units which are incorporated under the statute of a country and are comparatively large, while at the other end are the unincorporated enterprises characterised by low level of organisation. In view of this diversity, it is difficult, if not impossible, to devise a single strategy for data collection that is appropriate for all units in the scope. In view of this diversity, it is difficult, if not impossible, to devise a single strategy for data collection that is appropriate for all units in the scope. Data Collection strategy

43. Incorporated units - popularly known as companies, a list of such units is always available. Incorporated units - popularly known as companies, a list of such units is always available. Public sector enterprises – Complete enumeration Public sector enterprises – Complete enumeration The coverage of the private and foreign controlled incorporated enterprises should be achieved by dividing them into two segments – The coverage of the private and foreign controlled incorporated enterprises should be achieved by dividing them into two segments – large-scale units – complete enumeration, andlarge-scale units – complete enumeration, and the rest – cover through sample surveythe rest – cover through sample survey Data Collection strategy

44. Data collection strategy Universe of units engaged in industrial activities In BR (list-frame segment) Not in BR (Non-list frame Segment) Without Fixed Premises With fixed premises Area frame Should be covered through Sample surveys Small units Covered either Throughsample Surveys or Administrativedata 1111 2222 Large units PrivateSector Public sector Segment 1: Large units should be covered on a complete enumeration basis Completeenumeration Segment 2: Remaining through sample surveys 1. All units on the business register are excluded from the area frame (i.e. non-list frame segment). 2. All units in the sample that are part of a list frame segment and included therein are excluded from the sample of non-list frame segment. non-list frame segment.

45. Thank You