African Centre for Statistics United Nations Economic Commission for Africa Chapter 6: Chapter 6: Data Sources for Compiling SUT Ramesh KOLLI Senior Advisor on National Accounts, African Centre for Statistics At Expert Group Meeting on Supply and Use Tables 2-6 June 2014, Port Louis, Mauritius Le Méridien Ile Maurice EN/SUT/2014/Pres/03

African Centre for Statistics Outline of Presentation Introduction Data required for Domestic output and Intermediate Consumption by product & industry. Import and Export by product Taxes and subsidies on products and other taxes and other subsides on production Trade margins Transport cost Household consumption Expenditure Government Consumption Expenditure Consumption Expenditure of NPISH Change in Inventories Acquisition less disposal of valuables Compensation of Employees Consumption of Fixed Capital Net Operating Surplus

African Centre for Statistics 1. Introduction The construction of SUT is very data demanding and uses information from all sources, namely, censuses, surveys, administrative data, small scale sample surveys, research studies, and expert judgments. For compiling SUT, detailed data at product level for each components of supply and use tables (industries, valuation vectors, final use) is needed. However, in reality, economic data that is available in developing countries is much less than the data required by SUT. In such situations, countries may need to use all available alternative sources such as small sample surveys, borrowing ratio from neighboring countries of similar economies and expert judgments, besides the major sources.

African Centre for Statistics 2. Data required for Domestic output and Intermediate Consumption by product & industry. The data required for total output and total intermediate consumption and value added components, by industries is collected through establishment surveys. However, it is possible that such detailed product level data on inputs and outputs may not be generally available. The fall back options could be:  Focused input-Output survey covering a few establishments in each industry.  Look for research studies done by independent agencies  Interviewing industry experts  Borrowing intermediate consumption coefficients from neighbouring countries with similar economic structure.

African Centre for Statistics 3.Import and Export by product Import and export data comprises both goods and services. Data on merchandised goods comes from foreign trade statistics while data on service comes from Balance of payment statistics compiled by central banks. The SNA recommends valuation of imports and exports on f.o.b basis. Export data are usually available at f.o.b. and import are at c.i.f. In most countries, product level data on imports and exports is available on goods, but may not be for services For services imports and exports by products, central banks may be consulted.

African Centre for Statistics 4.Taxes and subsidies on products and other taxes and other subsides on production Data on taxes and subsidies on products and other taxes on productions may be available on government budget documents or tax authorities. In some countries, data on product taxes are available only at aggregate level, not with the product wise disaggregation –Estimates could be made on the basis of average tax rates for different products, then adjust the total product tax on pro-rate basis. Similarly for subsidies. –Information provided by industries in the establishment/enterprise surveys or through the business accounts of corporations on tax payments could be used to distribute the overall tax collections/subsidies paid.

African Centre for Statistics 5.Trade margins The data on trade margins by products is mostly estimated though indirect methods. The trade margin ratio for different product can be estimated on the basis of small surveys of wholesalers and retailers. The difference between the output of the product at basic price and the input price of same product at purchasers price (such information may be available in the establishment surveys in which product level details are collected) can be assumed to be trade and transport margins and net product taxes.

African Centre for Statistics 6. Transport Cost The transport cost can be estimated through indirect methods, in the absence of direct product wise information on transport cost from the enterprise survey. The procedure is the same as the trade margins calculations. The Eurostat manual on SUT and IO tables provides a very detailed method for indirectly estimating transport costs by products.

African Centre for Statistics 7.Household Consumption Expenditure The main data sources for household consumption expenditures are the household income expenditure surveys, retail trade survey, agricultural production surveys and other administrative data. Some countries use a combination of various sources for different items of HH consumptions. For example, consumption of alcohol from the excise authorities, electricity consumption from suppliers, & consumer durable from retail sales. Concordance tables between the COICOP classification and CPC for the product need to be established.

African Centre for Statistics 8. Government Consumption Expenditure The data required is product level information on general government purchases. The main data sources are budget expenditure documents of federal government, provincial government & local governments. Also for COFOG classification, data on detailed product level expenditures is needed by departments/ministries, for all levels of government. Generally, government accounts do not provide such item-wise details of expenditures. In such cases, small surveys may need to be conducted by selecting few government departments.

African Centre for Statistics 9. Consumption Expenditure of NPISH The data required for this component is the expenditure of NPISH disaggregated by products. The main data sources are surveys on NPISH, annual accounts of NPISH. The other alternative data source could be economic censuses or annual enterprise survey in which a separate code for NPISH could be given to identify the NPISH enterprises.

African Centre for Statistics 10. Gross Fixed Capital Formation The requirement of data for this component is the gross fixed capital formation disaggregated by type of assets (Products) under broad categories of construction, machinery & equipment and intangibles. The main data sources are construction surveys, building permits, annual enterprise survey, accounts of government budget documents, foreign trade statistics and the household surveys. The alternative data source is the commodity flow methods which are based on the availability of products from domestic production and import.

African Centre for Statistics 11. Change in inventories The source of data for the change in inventories are surveys on inventories, company accounts, annual enterprise survey, agricultural surveys, food balance sheets, government budget documents and government strategic stocks of food, oil, etc. Countries that do not regularly compile estimates of change in inventories should focus on estimating inventories at least for the government and corporations from their annual accounts, which are generally available.

African Centre for Statistics 12. Acquisition less disposals of Valuables The main sources of data for estimating this components are the import and export statistics and domestic production of valuables, if the data is estimated through commodity flow approaches. Alternatively, questions need to be included in the enterprise surveys and household surveys to collect such information from producers and consumers. Import and export data comes from customs authorities, the domestic production can be estimated by identifying the establishments/enterprises associated with the production of valuables.

African Centre for Statistics 13. Compensation of Employees The most common data sources for estimating compensation of employees by industry are:-  The annual enterprises survey;  Business accounts;  Government budget documents;  Administrative data;  Labor force survey

African Centre for Statistics 14. Consumption of Fixed Capital The recommended method of compiling CFC estimates by industry is the perpetual inventory method (PIM) The PIM requires long term data on gross fixed capital formation by type of assets cross classified by industry / institutional sectors and the life cycle of the assets.

African Centre for Statistics 15. Net Operating Surplus This component can be derived as residual, as the difference between industry output and the sum of intermediate consumption, compensation of employees, consumption of fixed capital. If countries do not compile CFC estimates, then the residual becomes the gross operating surplus /mixed income.

African Centre for Statistics United Nations Economic Commission for Africa Thank you Ramesh KOLLI Senior Advisor on National Accounts, African Centre for Statistics At Expert Group Meeting on Supply and Use Tables 2-6 June 2014, Port Louis, Mauritius, Le Méridien Ile Maurice