1. Canada’s trade in services by industry■
Statistics Canada
Presentation for OECD-Eurostat Expert
Meeting on Trade in services
September 19th, 2007

2. Description of Canadian statistics Issues with the current methodology
Presentation
Description of Canadian statistics
Issues with the current methodology
Redesign of the trade in services program: improved methodology

3. Description of Canadian statistics
Transactions by industry available for commercial services (all services excluding travel, transportation and government services)
26 categories of commercial services
8 industrial groups: 2 for goods and 6 for services
Based on North American Industrial Classification (NAICS)
1 memorandum item for ICT industry
No geographical breakdown
Available since reference year 1999
Plan to backcast to 1990
NAICS has 20 major categories and 24 2-digits categories
5 categories in goods-related production and 15 in services-related production
Prior 1999, data by industry were available on the base of Standard Industrial Classification – Company and enterprise, a StatCan classification
Backcast at micro level or macro level?

4. Commercial services by category and by industry
2005
Based on North American Industrial Classification System
Commercial services by category and by industry
Total, goods producing industries
Manufacturing [31-33]
Other goods producing industries
Total, services producing industries
Trade and transportation
Information, culture and arts
Finance and insurance [52]
Professional, scientific & technical services [54]
Management of companies & enterprises [55]
Other services producing industries
Memorandum item: Information & communication technology
CREDITS (in millions of C$)
Total, commercial services
6,158
5,401
757
30,731
3,800
7,337
6,351
9,991
921
2,330
10,163
Communications services
200
195 5
2,430
998
1,278 68 30 55
1,519
Construction services 57 52
165 11
125 28 1
Insurance services
3,877
3,640
231
Other financial services 8 3
1,914 2 39
1,719 64 12 78 41
Computer and information services
168
147 20
4,585
313
1,559
174
2,423 36 81
3,811
Royalties and licence fees
812
799 13
2,635
379
1,285 10
884
1,685
Non-financial commissions
104 97 7
738
569 14 86 59 6
311
Equipment rentals 15
305
190 4
111
Management services
1,110
892
218
4,018
385
309
647
1,860
468
350
863
Advertising and related services 40
462 53
185 34
Research and development
1,030
1,011 19
1,778
539
216
978 35
1,159
Architectural, engineering, and other technical services
1,265
890
375
3,418
160 21
3,001
192
304
Miscellaneous services to business
1,078
1,001
2,144
170
470
339 33
1,131
413
Audio-visual services
260
2,034 32
1,977 18
Personal, cultural and recreational services
229

5. Commercial services by category and by industry
2005
Based on North American Industrial Classification System
Commercial services by category and by industry
Total, goods producing industries
Manufacturing [31-33]
Other goods producing industries
Total, services producing industries
Trade and transportation
Information, culture and arts
Finance and insurance [52]
Professional, scientific & technical services [54]
Management of companies & enterprises [55]
Other services producing industries
Memorandum item: Information & communication technology
DEBITS (in millions of C$)
Total, commercial services
11,736
10,557
1,179
26,767
4,455
5,995
8,658
4,622
655
2,382
6,207
Communications services 14 13 1
2,420
823
1,414
119 41 23
1,515
Construction services
141 85 56 65 32 4 28
Insurance services 73 12
5,474 17 3
5,149
257 45 5
Other financial services 57 46
2,795 15
2,568 94 44 70 16
Computer and information services
226
185
1,942
356
460
126
934 54
1,135
Royalties and licence fees
3,979
3,833
145
4,338
1,516
1,437
717 37
608
1,526
Non-financial commissions
285
282
340
267 25 8 2 39
Equipment rentals 34
993
633 38
310
Management services
2,527
2,161
366
2,710
537
303
631
870 51
319
1,302
Advertising and related services
118
116
320 24 82 89 78 21
Research and development
893
858 35
438 49 53
256 52 26
387
Architectural, engineering, and other technical services
831
568
264
1,420 40
1,252 87 19 72
Miscellaneous services to business
2,500
2,293
207
1,219
142
262 6
566
113
Audio-visual services
2,086
1,984 74
Personal, cultural and recreational services
206

6. Description of Canadian statistics
Large concentration of services in few industries
Limited number of published industrial categories
Statistics compiled at NAICS-6 digits level
Published at NAICS-2 digits or even less
Frequent requests from users as lack of details for published statistics
Increasing interest in these statistics for issues such as outsourcing

7. Issues with the current methodology
Strength of using diversified sources vs. weakness of using different sources
Current industrial classification extracted from different sources but not consistently updated
Sources used:
Main survey on international trade in services
Large number of specialized surveys covering specific industries
Administrative data on trade between affiliates
Sources cover diverse parts of the units (enterprise, establishment, etc.)
No link with central Business Register (BR)
BOP had its own frame
BOP has its own frame which worked not too bad for investment but was a problem for services because the numerous sources used to compile statistics
Conversion from SICC-80 to NAICS 1997 at the end of the 90’s. It was not all done for each unit. Some units were converted using a conversion table.
At that time, there was a static link done with BR

8. Issues with the current methodology
Possible duplication
Not an accurate portray of the units (could still estimate for an inactive unit)
No consistent treatment between units
Interrogation about data quality = limitation of published categories
Difficulty to link data with other economic statistics
Part or totality of the same unit could be surveyed from different sources
Industrial classification was not seen as a key indicator
Project on glbalisation

9. Redesign of the trade in services program
Global project to improve trade in (commercial) services program
Objectives: Improve coverage, methodology, questionnaires, compatibility with other statistics, etc.
Involve a link with the Business Register
Complete structure of the unit will be available in the new BR
Industrial classification extracted from Business Register
Industrial classification based on the dominant activity
Industrial classification (NAICS) will be an important indicator for the stratification of the services sample

10. Redesign of the trade in services program
First step [fall 2007]: Link BOP units with Business Register
Find the appropriate top enterprise for each unit
Eliminate non-matches
Able to provide inputs to Business Register
Change in the collection process: Is the top enterprise always the best to provide statistics?

11. Redesign of the trade in services program
Second step [winter 2008]: Use Business Register to determine the target population and the sample
Establish criteria of selection based on known trade in services activities, industrial classification, and revenues
Over sampling certain industries

12. Redesign of the trade in services program
Third step [2009?]: Increase the level of published details for trade by industry
More confident in statistics due to better and more consistent methodology
Probable break in time series
Link micro data on trade in services with other economic micro data (employment, investments, etc.)
Other projects: Export and import registers
Reactive statistics on country of control

13. Thank you for your attention
Questions / Comments ?