Regional Seminar on Developing a Program for the Implementation of the 2008 SNA and Supporting Statistics Cihat Erce İŞBAŞAR 11-13 September 2013 Ankara - Turkey

Industrial Production Index Regional Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics 11-13 September 2013 / Ankara - Turkey Industrial Production Index

Regional Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics 11-13 September 2013 / Ankara - Turkey Contents I- Aim of Industrial Production Index II-Process Of Index Calculation III- Coverage IV- Classification V- Index Methodology

I. Aim of Industrial Production Index Regional Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics 11-13 September 2013 / Ankara - Turkey I. Aim of Industrial Production Index Industrial production index is a monthly index which is a pioneer indicator for GDP. Main aim of industrial production index is to reflect the production changes in industry sector in short periods.

II. Process of Index Calculation Regional Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics 11-13 September 2013 / Ankara - Turkey II. Process of Index Calculation Data for compilation of industrial production index is collected by regional offices from enterprises with monthly industrial production questionnaire. The enterprises have 20+ employees and produces %80 of value added in each four digit economical activity when sorted diminishing are taken in to the coverage of questionnaire. In 2012 6877 enterprises are covered in questionnaire.

Regional Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics 11-13 September 2013 / Ankara - Turkey

Regional Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics 11-13 September 2013 / Ankara - Turkey

II. Process of Index Calculation Regional Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics 11-13 September 2013 / Ankara - Turkey II. Process of Index Calculation In order to collect monthly data questionnaires are sent to regional offices in the beginning of the year. The questionnaires are delivered to enterprises by regional offices and the filled questionnaires are sent to regional offices after 25 days of each reference month by enterprises.

II. Process of Index Calculation Regional Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics 11-13 September 2013 / Ankara - Turkey II. Process of Index Calculation After collecting data from enterprises, TurkStat staff in regional offices transfer the data to TurkStat data bases by using interface application via internet. In this application there are different kind of error detector processes which warn the staff while entering data.

Regional Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics 11-13 September 2013 / Ankara - Turkey

II. Process of Index Calculation Regional Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics 11-13 September 2013 / Ankara - Turkey II. Process of Index Calculation For the missing values, imputation is done. While imputing missing values; previous values of the product and other enterprises ratios are used.

II. Process of Index Calculation Regional Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics 11-13 September 2013 / Ankara - Turkey II. Process of Index Calculation After 30 days of reference period, data is checked by the staff working in head quarters of TurkStat. While checking data, ratios for quantity for production and sales, ratios for value for production and sales and ratios for unit values are checked. Moreover box-plot and terror program analyses are done.

II. Process of Index Calculation Regional Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics 11-13 September 2013 / Ankara - Turkey II. Process of Index Calculation When data is checked and imputation is done, industrial production index is calculated and published on the 8th of each 2nd month after the reference period.

Regional Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics 11-13 September 2013 / Ankara - Turkey Questionnaires are delivered from headquarters to regional offices (Yearly) Questionnaires are delivered from regional offices to enterprises (Yearly) Questionnaires are delivered from enterprises to regional offices (Monthly) Regional offices control and transfer the data to data bases (Monthly) Data is checked by the staff in head quarters (Monthly) Index is calculated and published (Monthly)

III.Coverage Sector Coverage; Mining and quarrying Manufacture Regional Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics 11-13 September 2013 / Ankara - Turkey III.Coverage Sector Coverage; Mining and quarrying Manufacture Electricity, gas, steam and air conditioning supply Geographical Coverage; All Turkey

Regional Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics 11-13 September 2013 / Ankara - Turkey IV. Classification Statistical Classification of Economical Activities in the European Community 2nd Revision (NACE Rev.2) is used for activity classification. Prodcom 2010 Classification is used for product classification.

Regional Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics 11-13 September 2013 / Ankara - Turkey V. Index Methodology Laspeyres index methodology is used in order to calculate industrial production index. Vio = product i production value in base year qio = product i production quantity in base year qit = product i production quantity in period t

Regional Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics 11-13 September 2013 / Ankara - Turkey V. Index Methodology Base year of industrial production index is 2010=100 and in every five years (ending with 0 and 5) base year is revised and after three years this revision is done.

Regional Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics 11-13 September 2013 / Ankara - Turkey V. Index Methodology While calculation of the index; mainly production quantity of the commodities are used. However in some commodities which have volatile unit prices like drugs production value is used. In this case, Producer Price Index is used as a deflator. In addition to this in long term production sectors like ship and train construction, hours worked is used.

V. Index Methodology Weights: Regional Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics 11-13 September 2013 / Ankara - Turkey V. Index Methodology Weights: Weights for activity are taken from 2010 results of Annual Business Statistics Department. Weights for products are taken from 2010 results of Short Term Business Statistics Department.

V. Index Methodology Weights: Regional Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics 11-13 September 2013 / Ankara - Turkey V. Index Methodology Weights: NACE Rev.2 2010=100 B- Mining and quarrying 6,05% C- Manufacture 81,51% D- Electricity, gas, vapour 12,44% Total Industry 100%

Regional Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics 11-13 September 2013 / Ankara - Turkey V. Index Methodology Choosing of products and enterprises: The products which compose 4 digit economical activities are sorted diminishing by their production values. The highest products and the enterprises which produce this products are chosen for the index till %95 of the activity is covered. For 2010=100 base year industrial production index 5074 enterprises are chosen for the index.

V. Index Methodology 2010=100 base year industrial production index; Regional Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics 11-13 September 2013 / Ankara - Turkey V. Index Methodology 2010=100 base year industrial production index; 5074 enterprises are chosen for the index; 1872 products are chosen for the index; 230 four digit economical activities are covered in the index

V. Index Methodology 2010=100 base year industrial production index; Regional Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics 11-13 September 2013 / Ankara - Turkey V. Index Methodology 2010=100 base year industrial production index; Weight of records; 89,3% quantity data is used 10,3% value data is used (defleted by ppi) 0,4% hours worked is used.

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