Upload
drusilla-harper
View
219
Download
0
Tags:
Embed Size (px)
Citation preview
1
Workshop on National Accounts6-9 July 2009, New Delhi, India
UN Statistics DivisionUN Statistics Division
Implementing New classifications
Implementing ISIC Rev. 4
Presentation Plan
Introduction Overview of ISIC changes Implementation process - Steps
Structuring national classifications Adaptation of business register
Points for discussion
Since its creation in 1948, ISIC had two goals: Provide a tool for international comparison Provide guidance to countries for a national activity
classification structure
ISIC periodically updated to keep it relevant with economic developments. Side effect: Increasing need for detailed data has
lead to more detailed versions of ISIC
Introduction
Implementing ISIC Rev. 4
Structuring national classifications Creation of a new national version of national
classification (NSIC) according to ISIC Rev.4 for national use
Recoding Business Register Switchover in the Business Register to new NSIC
Statistics update process
Co-ordinate simultaneous switchover in statistics to new NSIC and the control of the quality of time series
ISIC structure changes
Increase in top-level categories
Increase in overall detail
New concepts (information, professional services, support services)
New application rules (vertical integration, top-down method, outsourcing)
6
Increased detail of ISIC Rev.4
ISIC Rev.3ISIC Rev.3 ISIC Rev.4ISIC Rev.4
SectionsSections 1717 2121
DivisionsDivisions 6060 8888
GroupsGroups 159159 238238
ClassesClasses 292292 419419
Continuity in ISIC Rev. 4
Despite many changes, a lot of areas in ISIC have not changed
Manufacturing as a “historical” area remains relatively stable
Most application rules remain intact
High-level concordance ISIC Rev.4A Agriculture, forestry and fishing
B Mining and quarrying
C Manufacturing
D Electricity, gas, steam and air conditioning supply
E Water supply; sewerage, waste management and ……
F Construction
G Wholesale and retail trade; Repair of motor vehicles …
H Transportation and storage
I Accommodation and food service activities
J Information and communication
K Financial and insurance activities
L Real estate activities
M Professional, scientific and technical activities
N Administrative and support service activities
O Public admn and defence; compulsory social sec
P Education
Q Human health and social work activities
R Arts, entertainment and recreation
S Other service activities
T Activities of households as employers…
U Activities of extraterritorial organizations and bodies
ISIC Rev.3.1
A Agriculture, hunting and forestry
B Fishing
C Mining and quarrying
D Manufacturing
E Electricity, gas and water supply
F Construction
G Wholesale and retail trade; …
H Hotels and restaurants
I Transport, storage and communications
J Financial intermediation
K Real estate, renting and business …
L Public administration …
M Education
N Health and social work
O Other community, social, personal …
P Activities of private households
Q Extraterritorial organizations and bodies
Structure of Section J
58 - Publishing activities59 - Motion picture, video, television programme
production, sound recording and music publishing activities
60 – Programming and broadcasting activities61 - Telecommunications62 – Computer programming, consultancy and related
activities
63 - Information service activities
Affected ISIC 3.1 categories:
221 ”Publishing” ( in “Manufacturing”) 72 “Computer and related activities” except
725 (in “Real estate, renting and business activities”)
642 “Telecommunications” (in “Transport, storage and communications”)
92 “Recreational, cultural and sporting activities” (9211, 9212, 9213, 9220, 9231 in “Other community, social and personal service activities”)
Implementation of ISIC Rev.4
Major tasks and challenges: Defining a new classification and associated
tools Reclassification of all units on the business
register according to the revised classification Maintaining two classifications for an interim
period Sampling and weighting under the new
classification
Implementation of ISIC Rev.4
Major tasks and challenges: Simultaneous estimation and results
assessment under both new and old classification
Construction of industry weights Construction of back series in terms of the
revised classification Handling of the national accounts move to the
revised classification
Structuring national classification
How can national classifications be structured?
1. Using ISIC as a starting point 2. Based on historical national versions3. Starting completely from scratch
Using ISIC as a basis
Countries that use ISIC as a basis for their national classification, can do this to varying degrees:1. Adopt ISIC “as-is”2. Use the complete ISIC and add subdivisions to
reflect nationally important industries (but maintain the ISIC coding structure) – can be “numerically truncated” back to ISIC [Example]
3. As above, but with changes of the coding structure (example: NACE) – requires correspondence table [Example]
4. Elevating lower level ISIC categories to higher national levels, (e.g. combine ISIC categories at 2- or 3-digit level) [Example]
ISIC link through “numerical truncation”
ISIC Rev.4 National Classification 23101 Manufacture of flat glass 23102 Shaping and processing of flat glass 23103 Manufacture of hollow glass 23104 Manufacture of glass fibres
2310
Manufacture of glass and glass products
23109 Manufacture and processing of other glass, including technical glassware
2391 Manufacture of refractory products
23910 Manufacture of refractory products
23921 Manufacture of ceramic tiles and flags 2392
Manufacture of clay building materials
23922 Manufacture of bricks, tiles and construction products, in baked clay
International comparability is maintained. No additional tools are required.
Link between ISIC and NACE
ISIC Rev.4 NACE Rev.2 2311 Manufacture of flat glass 2312 Shaping and processing of flat glass 2313 Manufacture of hollow glass 2314 Manufacture of glass fibres
2310
Manufacture of glass and glass products
2319 Manufacture and processing of other glass, including technical glassware
2391 Manufacture of refractory products
2320 Manufacture of refractory products
2331 Manufacture of ceramic tiles and flags 2392
Manufacture of clay building materials
2332 Manufacture of bricks, tiles and construction products, in baked clay
International comparability is maintained. However, correspondence table is required.
Combining of ISIC categories
ISIC Rev.4 National Classification 2311 Manufacture of flat glass
2310 Manufacture of glass and glass products
2319 Manufacture and processing of other glass
2391 Manufacture of refractory products
2392
Manufacture of clay building materials
2390
Manufacture of refractory products and clay building materials
International comparability is reduced Correspondence table is required.
Using ISIC as a basis
The first three methods maintain full comparability with ISIC at all levels
Option 4 limits internationally comparability to a higher aggregation level only
Is use of the same coding as ISIC 4 a requirement? - No, but it makes comparisons easier.
Using historical national classifications as a basis
Using non-ISIC based classifications always creates difficulties for international comparison Correspondence tables are necessary
May limit data conversion due to splits Efforts are encouraged to line the
historical versions up to ISIC At detailed level (without considering
aggregation structures) or By lining up individual sections
What detail should be considered? (1)
The United Nations Statistical Commission recommends that detailed categories of a national classification can be rearranged and aggregated so that they correspond with the 2-digit level of ISIC without loss of data.
However, most statistics and users will require more
Countries might want to add detail for industries of particular importance to the national economy.
Countries might want to remove detail for reasons involving size and relevance, confidentiality or homogeneity
What detail should be considered? (2)
Classification for collection may be more detailed than for distribution of data Using more detail for collection allows for future
adjustments if individual industries are growing Level of detail for publishing depends on type of
statistics anyway
No fixed guidelines exist for the proper choice of detail
ISICPossible approaches
“Formal approach”
Homogeneitybased
“Pragmatic approach”
Based on variables like:• # of statistical units• # of employees• value added
With chosen variable, compute ratio R between what is found within a category and average among “siblings”:• R < 0.5 => delete• R [0.5, 1.5] => keep• R > 1.5 => split
Drawbacks:•Hard to define levels/weights• Level of detail influence outcome• Ignore dynamic aspects
Compress or expand classification based the value of these ratios
Based on:Homogeneity ratios (as described in ISIC Rev. 3)
Drawbacks:• Not enough usable data• No definitive and mutually exclusive definition of activities by products
Based on:• Input from data users• Special concerns (confidentiality, extra burden, growing industries)
• New subclasses only created if user demand• Data users must justify their needs for splits, and estimate number of affected units and turnovers• Take confidentiality and extra burden into account in advance• No strict thresholds
Drawbacks:• Challenging and intense discussions, not all user needs can be met
Options to consider or avoid (1)
ISIC structure and definition are based on few criteria (input, process, output, use of outputs)
Should other criteria be added for national purposes, such as private vs. public entity, manufacturing by hand (crafts) vs. manufacturing by machines? What are the applications?
Generally, avoid unnecessary addition of detail
Options to consider or avoid (2)
When following the ISIC structure and coding system, don’t renumber codes if you want to skip a code number
Regardless of legality, size or other concerns, it is still within conceptual scope, and must be accounted for in the SNA.
Renumbering makes the ISIC link less intuitive
Rules for good housekeeping If a category at level n is not further subdivided, the
code at level n+1 should be the same code with a “0” appended
Use digit “9” for residual categories
Implementation of ISIC and CPC
Expert Group
Expert Group discussed a proposal for the implementation of ISIC and CPC at its meeting in April 2007
Main recommendations relate to: Timetable Documentation and tools Regional workshops Technical cooperation
Implementation Timetable
EG recommended two milestones: Countries should adapt their national classification
to ISIC Rev.4 by 2009 To meet population census target of 2010
International data reporting in ISIC Rev.4 format should begin in 2012
No specific dates have been recommended for completion of: Adaptation of business register Sample designs and weights for surveys Backcasting
Reasons:◦ The timing and organization of surveys varies by country◦ Scope (length) of backcasting differs by country
Documentation and tools
UNSD will develop: A Companion Guide to ISIC and CPC that helps
to understand: the concepts and structure of the classifications Application of the classification
Correspondence tables ISIC and CPC indexes
UNSD will also set up an open discussion forum and expand the classifications website into a larger knowledge platform
Implementation of ISIC Rev.4
Major tasks and challenges: Defining a new classification and associated tools Reclassification of all units on the business register
according to the revised classification Maintaining two classifications for an interim period Sampling and weighting under the new classification Simultaneous estimation and results assessment
under both new and old classification Construction of industry weights for short term
statistics Construction of back series in terms of the revised
classification Handling of the national accounts move to the
revised classification
Recoding the business register
Sources: Direct (straight) recoding (1:1 link) Problems for 1-n and m - n links
Internal sources Information from profiling of large and complex enterprises Existing business activity descriptions can some times be
used to allocate split codes between old and new classifications
External sources NSO may depend on external registers (tax
registration, social security, chambers of commerce etc.)
If admin sources convert to new classification at exactly the same time as the statistical BR of NSO – then admn source is helpful to determine the correct new code for the business
Points for discussion
Has the process for implementing new classifications been set up by the South Asian countries? If
Yes – Status No – Plan for implementation
Thank You