REGIONAL ACCOUNTS Ilham Malkaoui
Overview presentation Regional Accounts in a system of statistics Regions Users Concepts Methods / sources Quality monitoring
Regional Accounts in a system of statistics Statistical matrix Degree of integration Time Single Combined Integrated Future Month Quarter Year
System of statistics Region as a third dimension Time Region Degree of integration
Regions NUTS: Nomenclature des Unités Territoriales Statistiques level 1 to 3: ‘regions’ former NUTS levels 4 and 5: LAU 1 and 2 (Local Administrative Units) Since 2003 NUTS regulation
the Netherlands
the Netherlands NUTS 1 4 regions
the Netherlands NUTS 2 12 provinces
the Netherlands NUTS 3 40 regions
Users of Regional Accounts national government local / regional government universities research companies Eurostat / European Committee
Policy European Union Treaty of Rome (article 158): In order to its overall harmonious development, the Community shall develop and pursue its actions leading to the strengthening of its economic and social cohesion. In particular the Community shall aim at reducing disparities between the levels of development of the various regions and the backwardness of the least favoured regions or islands, including rural areas.
Flevoland
Structural Funds, 2007-2013
Gross Domestic Product per Region As Gross Domestic Product for a country (GDP) Production process (creating value added) and employment associated with it Regional production ≠ Regional income
Extraction of minerals in Groningen
Basic concepts in regional accounting Sum Regions = National figure Same basic concepts as in National Accounts: resident units (residency principle and units) transactions (flows and balancing items) accounts sectors If possible, the same statistical sources ESA 2010: European System of National and Regional Accounts (chap.13)
Some specific regional concepts Territory: Extra-Regio Units/transactions: Multi-regional units
Extra-Regio For activities in the economic territory of a country but not in one of its regions: Embassies abroad Exploration and exploitation of oil and gas on the continental shelf
Extra-Regio For activities in the economic territory of a country but not in one of its regions: Embassies abroad Exploration and exploitation of oil and gas on the continental shelf Sum regions + Extra-Regio = National figure
Multi-regional units Statistical units, mostly: Kind of Activity Unit (KAU) Consists of one or more Local Kind of Activity Units (Local KAU)
Albert Heijn
Multi-regional units a. KAU = 1 Local KAU b. KAU = 2 Local KAUs in 1 region c. KAU = 2 Local KAUs in 2 regions Pay attention: Industry code local KAU = Industry code KAU
Some practical problems Construction industry Company region A region B Building site Railways / pipeline company region A region B region C
Sources Total national accounts (SUT + labour) SBS employment Other available sources
Methods to compile Regional Accounts production income (expenditure) Depending on availability of regional information: bottom up mixed method top down
Regional ‘income’ concepts balancing items Gross Domestic Product per Region Primary Income per Region Disposable Income per Region
Primary Income per Region As National Income Compiled according to the resident region compensation of employees property income (interest, dividends) Mixed income
Disposable Income per Region As Disposable Income for country Appropriate for ‘standard of living’ Takes also income transfers into account Which sectors? Households! Government consumption? - education, health care service (social transfers in kind) - overall government consumption and savings
Restrictions Regional Accounts Gross domestic product per region for the total economy and for the sector households Primary and disposable income Comments (possible Regional impact) -Price level -Moonlighting not explicitly taken into account
Quality monitoring of Regional Accounts GDP per region and per inhabitant Inventory Compilation table Transparency!
Thank you for your attention! Regional Accounts Thank you for your attention!