1. Economic classifications
Day 1 – first afternoon session
ISIC Rev 4 and NACE Rev.2
Marie-Madeleine Fuger (INSEE -France-)
Gheorghe Constantinescu (INSSE -Romania-)

2. Development of ISIC and NACE
Plan of session
Development of ISIC and NACE
Historical background
Purpose and nature
Structure and coding
Interpretation
Relationships to other classifications
Revision aims and rules
NACE regulation
Main caracteristics of NACE Rev 2

3. ISIC (International Standard Industry Classification)
History
First version: 1948; Rev.1: 1958; Rev.2: 1968; ISIC Rev.3: 1989; ISIC Rev.4: 2006
Nature and targets
Activity classification
Homogeneity favored against statistical units and data availability
No distinctions based on:
Ownership (of units as of outputs)
Legal organization type
operating modes
Types of markets (market / non-market)

4. Main principles Criteria: input, process, output
“Similar” activities are grouped together
Similarity is based on the three defining components for activities
However, at lowest level, emphasis is given to similarities in the process
At higher levels, the analytical use of the categories becomes more important
A strict application of a ranking of the three defining components would often lead to categories that are not useful (e.g. by process in manufacturing)
A pragmatic approach of applying the criteria for grouping has been maintained, as in previous versions of ISIC

5. Main principles (cont.)
Although output (products) is related to the activity, it can not always be used to determine the activity of a unit
However, with some caveats, it provides a good tool
Classes of ISIC are defined so that as far as possible the following two conditions are fulfilled:
(a) The production of the category of goods and services that characterizes a given class accounts for the bulk of the output of the units classified to that class;
(b) The class contains the units that produce most of the category of goods and services that characterize it.

6. NACE (Nomenclature d’Activités de la Commission Européenne)
History of NACE
Elaboration of NICE between 1961 and 1963
Elaboration of NACE in 1970
Development of NACE Rev.1
Based on ISIC: strong decision taken in the 80’s
Same structure, more details
International harmonization respected
possible national versions
Legal base (regulation)
Working group NACE: since 1986
Current version NACE Rev.4 : 2008

7. NACE (Nomenclature d’Activités de la Commission Européenne)
NACE regulation
All statistics classified per economic activity must use NACE or a derived national level
Supplementary National levels and details but same frame (concepts, definitions) and same structure
National coding system may be different
National versions approved by the Commission
Creation of a NACE Committee: building up, interpretation and daily management
Pending problem: structure not allows economic studies
Other structure and aggregation needed

8. NACE Rev. 2 Interpretation Revision policy : Like ISIC
Explanatory notes extended
Strict links with CPA (*)
Hierarchy : NACE – CPA - CN
Case law —> rulings
Revision policy : Like ISIC
Increase of coverage
Harmonization between classification
Economy is changing
new activities
new organization
New concepts
(*) not always true

9. NACE Rev. 2
Main principles inherited from NACE Rev. 1.1 are still valid
Introduction of new concepts :
Activities dealings information and communication
Activities related to environment
Systematic identification of repair activities
Review of the outsourcing concept

10. Structure and coding of NACE Rev. 2
21 Sections : 1 letter
88 Divisions : 2 digits
272 Groups : 3 digits
615 Classes : 4 digits
Shared with ISIC Rev.4 02
Schéma d’organisation : emboîtement à tous les niveaux, comme dans la nomenclature actuelle,
L’emboîtement est visible dans le code, mais les lettres des sections ne sont pas rappelées devant les chiffres
La NACE est codifiée comme la CITI (classification internationale type des industries), mais avec un point entre le 2 et le 3ème chiffre
Disparition des sous-sections (propres à la NACE, elles n’existaient qu’en Industrie)
Les groupes et les classes NACE proviennent de l’éclatement de groupes et de classes CITI
Amélioration de la codification nationale : on lit directement la classe NACE dans la sous-classe NAF
02.1
Shared in all member states
02.10

11. NACE Rev. 2 Aggregated structures for national accounts
Fully integrated in ISIC/NACE structure
High level aggregation (10 or 11 categories)
Intermediate aggregation (38 categories)

12. NACE Rev. 2

13. Economic classifications
Thank you!