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Expert Group Meeting: to review “Handbook on Supply and Use Table, Compilation ,Application ,and Good Practice”

Expert Group Meeting: to review “Handbook on Supply and Use Table, Compilation ,Application ,and Good Practice”. Presented by Elias Fisseha Economic Statistics and National Accounts Section African Centre for Statistics 24-28 October 2011 Kaleb Hotel, Addis Ababa, Ethiopia.

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Expert Group Meeting: to review “Handbook on Supply and Use Table, Compilation ,Application ,and Good Practice”

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  1. Expert Group Meeting: to review “Handbook on Supply and Use Table, Compilation ,Application ,and Good Practice” Presented by Elias Fisseha Economic Statistics and National Accounts Section African Centre for Statistics 24-28 October 2011 Kaleb Hotel, Addis Ababa, Ethiopia

  2. CHAPTER 13: Classification of Industries and Products and the size of SUT

  3. Outline of Presentation • General • Classification of Industries for the SUT • Classification of Products for the SUT • Final consumption expenditure Vectors • Import and Export Vectors • Concluding remarks • Comments and suggestion • Point of Discussion

  4. 1.General • The size of SUT refers the number of Industries and Products . • For 2011 ICP, the guiding factor for determining the size and classification of SUT is that the SUT product classification should match with ICP basic heading classifications. • In most countries, the primary data available from different sources are classified:- • Central Product classification (CPC) for product • International Standard Industrial Classification (ISIC) for industries • Standard International Trade Classification (SITC) & Harmonized Commodity description and coding system (HS) for foreign trade

  5. 2. Classification of Industries for SUT • The SNA recommends the use of ISIC for the classification of Industries for SUT. • The latest version of ISIC rev 4 contains 21 sections, 88 divisions, 238 groups & 419 classes • ICP does not make any recommendation on the size of industries, as the requirement of ICP are GDP expenditure in terms of product and purposes. • For ICP, product classification are more important than industrial classification. • Countries choose industry classification for SUT on the basis of their importance to the economy.

  6. 3. Classification of Products for SUT • The SNA recommends the use of Central Product Classification ( CPC) for classifying products. • For ICP, the ideal product level to be included in the SUT is the ICP basic headings. • ICP level of product classification in the SUT will provide weight to the price collected and for the compilation of real GDP expenditure.

  7. 4. Final Consumption Expenditure Vector • This is the Use Matrix to the institutional sectors of Households, NPISH and Government. • The recording of the expenditure of these sectors follows the classification of final expenditure by purpose. namely (COICOP), (COPNI) & (COFOG). • The primary data available on consumption expenditures of household , NPISH and government according to purpose need to be reclassified to the product classification chosen for SUT. • The concordance table between COICOP, COFOG & COPNI has to be constructed.

  8. 5.Import & Export Vector • The International classification for recording imports and exports are the Standard International Trade classification SITC & HS. • The concordance table has to be established to transform the data on Import and export in SITC/HS to the product included in the SUT based on CPC classification.

  9. 6. Concluding Remarks • Countries has to choose the size of SUT on the basis of the number of factors that include:- • Importance of industries and products; • Availability of primary data; • Current national accounts practice; • For ICP 2011, the guiding factor to meet the ICP requirement for countries is to construct SUT at basic heading level

  10. 7. Comment and Suggestion • The chapter properly explained the industry and product classification for SUT • It also properly explained the ICP requirement. • It has to include explanation on the uses of National Industrial classification (NIC) • Since the classification of product and industry is the first step in SUT compilation, this chapter has to in the beginning of the document. • The concordance table has to established b/n CPC & ICP. • Concordance tables has to be annexed.

  11. 8.Point of Discussion • How can we allocate products which are classified in “ other items not else classified” • How can we use National Industrial Classification (NIC) for ICP purpose. • Which move is advantageous? • Expanding from the smaller size SUT to larger size • Contracting from the larger SUT to a smaller size

  12. Thank you Please visit us at Website: http://ecastats.uneca.org/

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