statnorway tis ukrain okt 2008 1 external trade in services per Øivind grindalen division for...

StatNorway TIS Ukrain okt 2008 1

External trade in services

Per Øivind Grindalen

Division for External Trade (22)

Statistics Norway

StatNorway TIS Ukrain okt 2008

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2

External trade in services External trade in services

•Background / History of the statistics (1)Background / History of the statistics (1)

•Key terms – (2)Key terms – (2)

•The reporting system (3)The reporting system (3)

•Data revision (4)Data revision (4)

•Publishing (5)Publishing (5)


Background / Changes in Norway 2004 / 2005

• Central bank of Norway (Norges Bank) discontinued the foreign payments statistics at the end of 2004

• The Customs & excise authorities established a new Register of crossborder transactions and currency exchange (Valutaregisteret)

• Statistics Norway took over responsibility for data on non-financial sector for balance of payment purposes

– Pilot reports 2003 and 2004– First real reports 2005 (quarterly and annual) – only used for BoP-

purposes– Data for 2006 (Annual survey) – published as separate statistics


External trade in services – 2

The concept of services Services – What is a service?Services – What is a service?

– Type of services = CPA – EU Classification of Products by Activity

– It is difficult to define the concept of services in a short and precise manner. In the BoP-reporting it is therefore to some extent necessary for the reporting firms to apply their own understanding of the concept, both when it comes to distinguish between goods and services and to identify the different types of services. When deciding on what types of services that are exported and/or imported the reporting firms should use the document "Statistical characteristics".

– A service will also typically lead to a change in the principal's own state or condition or in an item she owns; a medical service leads to the patient's recovery; a freight service ensures that a commodity is moved to another location.

– many services are closely related to goods. The transport, storage and repairs of goods are examples of such services. Other examples are information and media services that are stored on physical objects such as on a compact disc.


Overview of CPA-codes000091 – 000099 / 4 Contract work and repairs

112011 – 112012 / 2 Services related to oil and gas exploration, excluding surveying

450001 – 450002 / 2 Building and construction projects

511000 – 519000 / 2 Wholesale trade and intermediate trade

555210 / 1 Canteens and catering

601010 – 601020 / 2 Transport by rail

602100 – 602400 / 3 Other land transport

603010 / 1 Pipeline transport

611010 – 611034 / 4 Sea and coastal water transport

621010 – 622032 / 6 Air transport

631110 – 634000 / 8 Supporting and auxiliary transport activities; travel agency activities

641110 – 642000 / 3 Post and telecommunication

651000 / 1 Financial services

672000 / 1 Activities auxiliary to insurance and pension funding

702000 – 703000 / 2 Real estate activities

710000 / 1 Renting of transportation, machinery and equipment

721000 – 726000 / 6 Computer services

730000 / 1 Research and development (R & D)

741100 – 748000 / 12 Business services

900000 / 1 Collection and treatment of waste and sewage and other environmental services

921000 – 927000 / 7 Leisure activities, cultural services and sports

981000 – 989000 / 3 Other services


External trade in services The concept of exports and imports

• Exports / incomeExports / income• Services delivered to and paid for by foreign counterparts

– All services that are delivered by the reporting firm (resident in Norway) to companies, affiliates, physical persons or other units abroad are regarded as exports. Note that the services could be delivered either in Norway or abroad.

• Imports / expenditureImports / expenditure• Services received from and paid out to foreign counterparts

– All services that are delivered to the reporting firm (resident in Norway) from foreign units are regarded as imports, including services that are activated in the balance sheet and written off over a period of time. Note that the services could be delivered either in Norway or abroad.


Resident (Norwegian / domestic enterprise) Resident (Norwegian / domestic enterprise) Non-resident (foreign enterprise)Non-resident (foreign enterprise)• Norwegian / domestic resident

– The following units are regarded as Norwegian in the balance of payments statistics:

– Legal persons registered as Norwegian, excluding their affiliates abroad. The definition is valid regardless of the owners' nationality. Hence, foreign owned companies registered as Norwegian are regarded as Norwegian units.

– Affiliates in Norway of foreign registered legal persons.– Physical persons permanently residing in Norway, regardless of citizenship.

• Foreign / foreigner– The following units are regarded as foreign in the balance of payments

statistics:– Legal persons registered abroad, including Norwegian owned companies

that are registered abroad.– Norwegian companies' affiliates abroad.– Physical persons permanently residing abroad, regardless of citizenship.


Sources of misinterpretation – Terms not part of the vocabulary of the bookkeepers

• Purchaser / seller

• Settlement part

• Country of delivery

• Domestic trade included

• Goods

• Mix of exports and imports

• Value of services included in the price of the goods


Possible initiatives to improve data quality

• Clear and consistent feedback to the reporters

• Frequent reporting – quarterly surveys vs. annual surveys

• Internal competence

• Differentiation


External trade in services - procedures

I

Population

Sample

Letter

Respondents

Web-form

Ssb-receiv syst

T I S -syst

Controls

Revised data

Revised/Reporteddata vs data for the Whole population

Publishing


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External trade in services - 3External trade in services - 3

THE REPORTING SYSTEMTHE REPORTING SYSTEM

How to report How to report Exports and imports of services Exports and imports of services

to and from abroadto and from abroad


Our Websites

• Information about the survey and link to forms– http://www.ssb.no/skjema/tjh/

Information in Norwegian

– http://www.ssb.no/english/skjema/tjh/ Information in English

– The form is only in Norwegian

Statistics on services

• http://www.ssb.no/english/subjects/09/05/uhtjenester_en/

• BoP-statistics

• http://www.ssb.no/english/subjects/09/ur_okonomi_en/

http://www.ssb.no/skjema/tjh/



http://www.ssb.no/english/skjema/tjh/



http://www.ssb.no/english/subjects/09/05/uhtjenester_en/


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External trade in services - 4External trade in services - 4

Data revision Data revision

methods and toolsmethods and tools


Controls & revision Respondent

Controls

TISOK

YESControls

NOControls

GrowthDecline

New serviceOld service missing

New enterprise

Previous reportContact phoneAnnual report

Web-site

Revision

System revisionWeighing up

Missingreports

Use in the BoPOther publishing


Overview

• The annual survey: 2006– Data revision methods and tools– Test – Other sources – Problems around trade of goods and services

• The quarterly survey: 2q 2007– Data revision methods and tools– Data revision: an example

• Challenges and further developments in surveys of external trade in services


The annual survey

• The sample for 2006 has ca 4 000 respondents

• Pr 19 of September 184 respondents are missing

• Response rate about 98%

• As for the quarterly survey, we run daily updates on incoming data (SAS program)


Data revision

The respondents are divided into 4 groups mainly based on NACE (Standard Industrial Classification) and every auditor has their own group

Afterwards, data are organised into 3 groups:1. Respondents which also participates in the quarterly survey (540)2. Respondents from the annual survey 2005 (1575)3. New respondents (1865)


Data revision : Test

• If total figures 200612 and 2006 differs more than 5%

• Data ok if less than 5%

• Absolute error (AF) if more than 5%

• New and/or missing cpa codes compared with 200612 or previous year

– Based on information from the testing program, the data application and maybe other SAS-programs every auditor does

MANUALLY corrections


Data revision: Other sources

• External trade in goods

• Sales income / expenditure

• Annual accounts

• Web-site

• Comments from respondents – IDUN web-form

• and / or feedback from respondents via e-mail / telephone


Problems around trade of goods and services • Services related to products• Started a working group which is going to analyze the relationship

between goods and services – Contract work and repairs

000091 Installation and assembly 000092 Repairs and maintenance 000093 Rebuilding and outfitting conducted for others 000099 Contractual work and other industrial services

– Construction 450001 Construction abroad 450002 Construction in Norway

– Intermediate trade 519000 Intermediate trade

– Computer services 721000 Hardware consultancy 722000 Software and system consultancy

– Film and video activities 921000 Film and video activities

– Royalties and licence fees 981000 Royalties and licence fees


Data revision: Challenges

• Communication with respondents– Do enterprises understand what they are asked to report?

Ex) Merchanting services (Intermediate trade)For year 2006, it is reported 83 imports (corr. MNOK 3 039) and 53exports (corr. MNOK 2 230), which shows obvious misunderstandingabout the reporting

– Consistency in questionnaires over time Ex) Transportation services

Changes in CPA use has caused confusions to some of the respondents

• Communication with IT support in SSB– Necessary to have better communication with IT support section for

updating questionnaires, data transfers and detecting/recovering of system failures


Further developments

• Obtaining expertise – Increasing sample size of quarterly report – Eventually, removing yearly report (planed from yearly report 2008)– Having closer relationships with each respondents, especially within

the problem areas such as merchanting services and transportation services

• Cooperation with IT support– Updating UTBASE – Alternative solutions for questionnaires (Excel / Altinn)


External trade in services - 5

Published statistics

for non-financial enterprises, 2006


External trade in services, 2006

• Transport dominates trade in services

• Enterprises engaged in transport, storage and communication accounted for more than 50 per cent of both exports and imports of services to and from Norway in 2006. European countries were the most important trading partners.

• The statistics on external trade in services for non-financial enterprises are part of the statistical basis for Norway’s balance of payments. These statistics do not include trade in services for financial enterprises, households, non-profit organisations and public administration. The figures presented here are therefore not comparable with the figures presented in Balance of Payments - Current and Capital account (cf. About the statistics).

• These statistics were established in 2005 when Norges Bank discontinued their foreign payment statistics, which were an important basis for the balance of payments. This article presents the 2006 figures for external trade in services for main types of services for non-financial enterprises, including enterprises operating in ocean transport. Figures on external trade in services regarding geographical specification are also included.

• The purpose of the statistics on external trade in services is to provide information about the service flows between Norway and other countries. Income and expenditure in connection with exports and imports of services to and from other countries are important economic indicators both in describing structural changes and in monitoring economic trends (cf. About the statistics on limitations and other conditions).

http://www.ssb.no/english/subjects/09/05/uhtjenester_en/about.html






External trade in services, by CPA-codes, aggregated. 2006. NOK million

Service types Export Import

NOK million Share NOK million Share

Total 155 036 100.0 127 689 100.0

Contract work and repairs 7 192 4,6 % 8 912 7.0%

Services related to oil and gas exploration, excluding surveying 11 778 7,6 % 18 645 14,6 %

Building and construction projects 1 774 1,1 % 2 670 2,1 %

Wholesale trade and intermediate trade 3 457 2,2 % 5 280 4,1 %

Transport by rail and other land transport 1 902 1,2 % 1 982 1,6 %

Sea and coastal water transport 82 230 53.0% 15 436 12,1 %

Air transport 904 0.6% 1 216 1.0%

Supporting and auxiliary transport activities, travel agency activities 4 960 3,2 % 28 784 22,5 %

Post and telecommunication 4 117 2,7 % 4 865 3,8 %

Renting of transportation, machinery and equippment 5 141 3,3 % 3 432 2,7 %

IT services 3 819 2,5 % 4 048 3,2 %

Research and development (R & D) 1 571 1.0% 1 423 1,1 %

Business services 21 629 14.0% 23 540 18,4 %

Leisure activities, cultural services and sports 872 0.6% 2 390 1,9 %

Other services 3 691 2,4 % 5 067 4.0%


External trade in services, by major industry activities, aggregated. 2006. NOK million

Major industry activities Export Import

NOK million Share NOK million Share

Total 155 036 100.0 127 689 100.0

Mining and quarrying 14 056 9,1 % 21 870 17,1 %

Manufacturing 14 217 9,2 % 11 950 9,4 %

Electricity, gas and water supply 126 0,1 % 1 007 0,8 %

Construction 1 119 0,7 % 1 289 1,0 %

Wholesale and retail trade 4 671 3,0 % 10 149 7,9 %

Transport, storage and communication 98 821 63,7 % 65 829 51,6 %

Business activities 21 086 13,6 % 13 572 10,6 %

Other industry activities 940 0,6 % 2 022 1,6 %


External trade in services, geographical specification


And that’s it


Data revision: example


Data revision: example (cont.)

statnorway tis ukrain okt 2008 1 external trade in services per Øivind grindalen division for...

Documents

concept of services

type of services

media services

services background

different types of services

foreign units

external trade

codesstatnorway tis