1. REGIONAL ACCOUNTS
Ilham Malkaoui

2. Overview presentation
Regions
Users
Concepts
Methods / sources

3. 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

4. the Netherlands

5. the Netherlands
NUTS 1
4 regions

6. the Netherlands
NUTS 2
12 provinces

7. the Netherlands
NUTS 3
40 regions

8. Users of Regional Accounts
national government
local / regional government
universities
research companies
Eurostat / European Committee

9. 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.

10. Flevoland

11. Structural Funds,

12. 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

13. Extraction of gas and oil in Groningen
Economic growth

14. 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)

15. Some specific regional concepts
Territory: Extra-region Units/transactions: Multi-regional units

16. Extra-region 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

17. Extra-region 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-region = National figure

18. Multi-regional units
Statistical units, mostly: Kind of Activity Unit (KAU) Consists of one or more Local Kind of Activity Units (Local KAU)

19. Albert Heijn

20. 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

21. Some practical problems
Construction industry
Company region A region B Building site
Railways / pipeline company
region A region B region C

22. Sources Total national accounts (SUT + labour) SBS employment
Other available sources

23. Methods to compile Regional Accounts
production
income
(expenditure)
Depending on availability of regional information:
bottom up
mixed method
top down

24. Regional ‘income’ concepts balancing items
Gross Domestic Product per Region
Primary Income per Region
Disposable Income per Region

25. Primary Income per Region
As National Income
Compiled according to the resident region of the employee
compensation of employees
property income (interest, dividends)
Mixed income

26. Disposable Income per Region
As Disposable Income for country Appropriate for ‘standard of living’ particularly Regional. Takes also income transfers into account

27. 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

28. Thank you for your attention!
Regional Accounts
Thank you for your attention!