The integrated system of industrial statistics and some of its uses

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66-1548

THE INTEGRATED SYSTEM OF INDUSTRIAL STATISTICS AND SOME OF ITS USES

(Prepared by the Statistioal Offic of the United Nations)

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B.

C.

TABLE OF CONTENTS

THE POSSD3ILITIES OF THE INTEXlRATED S'YSTEM PORPOOES

METHODOLOGY

Soope, coverage and reference pried The Statistical unit

The statistics to be compiled and items

e r

data to be gathered

E/CN.14/STAT/4

Paragraphs

5. 1 - 5.27

5.1 - 5.5

5.6 - 5. 9

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E/ CN. 14/ STAT! 4

THE INTEGRATED _Sl'S_~'EM 0]' llIDlJ;3'l'RUL STP"T"iS'1'ICS AND SOME OF ITS

uszs

1. This paper deals _w~th .he possibilities, purposes and usee , and me t hodol ogy of an int~grated system of industl~al stat is tic s .

2. An in tegrated system of indw3trial sta t j.et ic s is recommend ed as the most eff icient means to secure ccmprehens i ve data on industrial activity of the maxir .~ reliability, comparabil i ty and continuity. The practical experien ce of cat i onal agencios has borne out that separa t e inquiriee should be rel e t ed to one anothor with regard to objectivea and methods. It is clear that the element s of each inquir y that should be considered in r el a t i ng the inquir i es to one another consist of the

kind of industri al unaus to be covered, the data til be sought and compiled, and the methcds and organi zat ional arrangemen t s to be uti l iz ed for these purposes.

A. The ;poss; bi¹ities of..1he i·,t3grated s..z~te'!!.

3.1

The in ter dependency of th e different inquirios in a full st a t i a t i c al system offers the followingl

The mor e comprehensive (census) inquirioe may serve as a base or frame ·f e.., the cu.rr,mt ⁰^:::- b.G. hu". inqui~'iefl. To sEl~'Ve the current and ad hoc inqui r i os the ccmpreh ensive inquiry should yield the following, among O·~h:'l·S.

(a ) The _info~·mat_{i. on} em tho idontlty and charccteristics of industrial establishmentv that are neces=ary to establ ish a

defin i tive diI'octc ~y;

(b)' Suffic i en t information on th0 activities of the industrial establis hmen ts to maks i t possi ble to classify themto the differen t b:::-an ohe s of in~ustry. 'Detai led da ta on the products produ ced or s~I'~i cao rendored helps th is oonsiderably;

(0) The data en th e employme nt, out put and other aspect s of the acti viti es of these units that are requir ed for the separa- tion of large and small es t a'Dl is:'1-::en t s er for selecti on of industr i " t'< and

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t<::bl i shment s fo:!: othel' sur-veysj

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(d) The data for establishing a frame for the taking of sample surveys;

(e) The data for the establishment of weight s for in dex numbers of production , employment , producer prices;

(f) The data that are necessary for the establ i s hment of a list of selected commodities for which industrial data should be collected and a li s t of selected mat erials for which con- sumption data might be colleoted in ourrent inquiri es; and (g) The data whioh help to estimate the propor t i on of es t abl i s h-

ments wh i oh are in oluded in the mor e fre quent inquiries.

These estimate s might be based on empl oymen t or on output dat a .

3.2 The annual inquiries may hel p to up-date the data of the oomprehensive inquiries and at the same time help the organ i z at i on of the mon t hly or quarterly inquirie s. Some suoh uses are:

(1) The up-dat ing of oensus da t a of value added by the help of annual de..t a. en value added or the ••index number of industrial pr oduoti on. This might hlllp the oaloulati ons of national aooounts.

(2 ) The up-dating of the industr i al ooe fficient s of an input- output tabl e by the help of the enumeration of the oonsumption of the most important materials in the different branohes of indus try.

(3) The annual inquiries might yield data for the checking and rev i s ion of clas sificati on of establishments into the different branches of indus t ry .

(4 ) The annual inquiries will yield an up-t o-da t e frame for the sel ection of es tablishmen ts for the mon t hl y and quarterly inquiries. It helps to iden ti f y the new factories and those which are gone out of business.

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(5) The annual in~uiries wi ll help to have an up-to-date estimation of the share oovered by the more fre~uent in~uiries.

Summing up the relation to the more frequent in~uirie s the annual surveys provide the basis for designing monthly or quarte rl y surveys and for adjusting the oover ag e and results of the OQ~rent survey to more oomplete and reliable information~

3.3 The monthly and/or ~uarterly in~uiries are neoessary for oonstant evaluation of the eoonomio development. Governments re~uire data on at least seleoted aotivities of the important industrial units of their eoonomies more frequently than onoe every year. The level of industrial aotivity, espeoially of larger establishments, may vary substantially in the short run. Figures, at least on pr oduot i on and employment, are wanted. All this means that the monthl y or ~uarterly data are helping

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(i) Up-date the produotion and employment data of the annual inquiries;

Supply provision al, prel i mi nar y but ~uiok annual data; and Yield data for provisional or final indexes of production and employment.

The finalization of th e p:'ovi5ional annual figures yielded by the

monthly and quarterly in~uir ie s, with the help of the annual inquiries, needs a well-planned co-ordination between the annual and the more

fre~uent than annuel in~uiries .

3.4 The more fre~uent th~~ annual in~uiries are the monthly and

quarterly surveys. The ques tion arises as to which one is preferable, the monthly or the quarterly survey . This ~uestion oan be decided only in, the light of the national oircumstances. The monthly surveys yield more ourrent data and show the movement of industrial development in a more continuous way , as wel l as havi ng several other advantages.

Since the agency collecting the surveys is in cons tant communication with the establishment s, the sta ti s t icians supe rvi s ing the operation

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acquire a close ~10" ledge of the industry . ~l the ot her hand, a quarterly survey re quiro ~ a small er number of ski l l ed st a t i s t i c i an s , oosts less in every ree poc t, and eight be more acceptable to the establishments Bubmitting the re por t s ,

3.5

^{The a}^{d h}^{oc (}occao ional) in quir ies ~ay hel p to gi v e complement ary infor ma t i on on certai n aspect£ of the industry. This kind of inquir y may cover such topic s ae f!.xad capit al , total ca pi t al at a cer t ai n date , det a il s of ins tall ed equipment including capacity, use of capaoity , di s t r i butior. of Lab our- foz-ce acccrdang to skill , man-hours worked per unit of selected prcduct , use of up-to- -date technolcgy, etc. Since it would not be feasible to burden the comprehensive or annual inquir ies with this kind of in7e etig at i cn, these and si mi lar subjects may be

treat e d in the ad~2~. inquirie s.

3.6

The prob~ sm of int e5rating or at l oast co-ordi nating func tional inquiries with the above-menticned inquiries also arisss. Inquir i es oovering such topics as labour, investment, or fin~lc o usually hav e a wider scope than in dustry. Co-ordination woul d IOcan in these case s

trying to use the sorea defin it i ons for items of da ta and using as far as possible the sarea clc s c ifi oa t i on fo~ parti clu ar units, etc. ~e

of the major ddf'f'L cul,ties in the ,ray of thi.s kind of co-or dinati on is tha t in many canoo fo::- dii':'~,cnt sur-veya aUd/ or it ems of data a different statistical lmit is used. For example whil e es t abl i s hment s may be used as statistical ~~itc in ths L~dustrial inquiries , ent erprises may be used in some _function~l once (i.e. _o_over~.g inves t ment , finance , et o.) . In these cas e s it is nsoe s s ~y to find the appropriate means to bridge the differenc oc botwe en the ostabl i sh:nent and enterprise statis tic s. Thi s might involve gathering, by means of some special inqui ry , a few it ems of dat a for each est ablishment of the mul ti -un it enterprises .

3 .7

The two kinds of inquirie a, census and current, are complement~y

to each other in adv era! aspects.

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(a) Census inquirie s gener al l y have much mcre det a i l ed data than current or ~d_hoc. inQui rie s . The former yie ld ever y kind of struot ur al dnta. The size structure, the area structure, the kind cf act ivi'~Y structur0 are among the characteristics gene:::-all.y ava.iLs.b'Le only from the compre he ns i ve inquiries.

It is olea:::-, however , that to compi le time ser i es from the ccmp:::-ehen siv G inquiries "i l l not be adequa te and surely not sufficient fcr economic analysis. These da t a will serve as bench-mar k da.ta only and should be conne cted wi t h the time

ser ies obta.i.ne-I from ann ual and mor e fr equ ent inquiries.

(b) Mon thly or qunrter ly inquiries supply data whi ch yield the series for the oalculation of the time ser ies and index

numbar-o, '1'h" mos'~ important of the s e are: quantity and value seri es of oele c ~ 6 d prcduct s produced, inde x numbers of industrial ~ro ~uction, ~mploymen t , 2nd pr ices .

(0) Annual in quiriBs usual l y may yi el d both st r uc t ural data and time series, and may be the only o.nquiries to gi ve time ssri es on derivod figures (~. g., produc t i v i ty, input-output ratios )•

3.8 It should be bor ne :i.n mind that th'3 j.nterde pe ndency will not always mean that one inquiry is compl e ment ary to the othe r . It has to be taken into aocount that ml it em of data deri ve d fr om one inquiry may not

necessarily be compf em'lnt=y to o'~her daha of a di f f eren t inquiry beoause of differ ences in soope, coverage, :::-efel'cnc e per icd, etc. One of the best known exampl e s is the differe n ce s be~, e en the coverage, frequency, reference pericd, stat istic a.l uni t , etc. , of produc t i on dat a and employment data. The us e of thece da ta, thc:::-efor e, for the es t ima t ion of changes in la bour productivity may be very misl e ading .

3.9

The set t i ng up of ^0. compl e tel y integrat ed sy ste m of industrial statistios makes it pos sj.ble and ne ceo s ary to ensure the continuous, planned work of an indue t:::-ial or g n.niza+,iol: and in other agencies dealing

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wi t h indu stri al statistics. The const an t work on industri al st a t i s t i c s should hel p the staff to acquire the nec ess ary skil l, exper ience and

knowledg e to conduct succe s s ful l y current and ba s i o industrial inquiri es. , The same pers onnel supervising the same sect or s of industry should ac-

cumulate a con s iderabl e knowledge of the probl ems and development of the industr y. They will beco me exp er t s on the metho ds and st an dards cf indus t rial sta t i s t ics, and th ey can be kept informed on the development of industri al stat is t i cal met hods and st andards in other countries.

3.10

An

integrated sys tem of industrial statistics using the same methods, standards, etc. , wil l serve continual ly to educat e respondente and increase their underst anding of the whole operat i on and result, most likely, in their improved co-operati on. They wil l also learn that the published statistical data may prove useful in their own business activitiee provided it is publ i shed in ti me .

3.11

An

integrat ed system of industrial stat i stics wi l l en s ure the necessary co-operat ion and co-ordination of all the agenci es wh i ch oollect, compil e, and publ i s h industrial statistics. In some countries of Africa, seve ral separate organi z at i on s are dea ling wi t h industrial statistics. For exam pl e , in some countri es the industrial census is carri ed out by the Statist ical Office, whi le the annual and more fr equen t industrial inquiri e s are carri ed out by some of the Mi ni s tri ee (the

Mini s t ry of Indus t r y, or the blin i s try of Developmen t , etc. ). In these oases, an int egrat ed system means to co-ordinat e not only the standards used, the items of da ta to be gathered , and the sta ti stioal unit, but also all organiz at ional arrang ements of these different offices. For instance, th ese offices should co- operate closel y in communicating with the establishments, should co- or di na te the training of their staff , etc .

3.12 Such an integrated system of indus tr ial stat is t i c s is much more likely to avoid the duplicat i on of inquiries by di f fe rent offices. It is wel l known that any dupl ica tion of inquiri es invol ves a considerable

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amount of was te of manpower and cost and als o might endanger the whole operation by cr eating confusion in the re porting units. Wi t h an integrated

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eys t em of industrial statistics the different officee, working in cl os e co-ordination, will eliminate all dupl ication from their res pective inquiri es and wi ll use the same terminology . Of oourse it is necessary again.to ens ure st r ict co-ordinat ion on all mat ters relat ing to indue- trial stati s t i cs, such as the frequenoy of enumsrations , the st at i s t i oal unit, the standards , etc.

3.13 Proper co- ordination will involve making sure that there are no contradi o t i ons in the results of various inquiries which may be shown in di f fe rent publications . The checking of the annual and the mon t h ly (or quart er l y ) data, and the data obtained from the census aga in s t eaoh other is one of the means of ensuring consistency among the differ ent inquiries. In most Afrioan countr ies the number of large establ i s hmen t s is not very high , therefore the ch ecking of comparable dat a mi ght be oarried out at est ablishment lev el, thus oons is tency would be ensured before oompil a ti on. This will not, of course, eliminate the need to ensure a proper rel a t i on s hi p between the published data by checking for con s i s t ency at aggregated level as well . This checking is usually oarri ed out using ratios and indexes etc. , rather than the absolute fi gures, beoause of the different scope and coverage of the different inquiri e s.

3.14 To achi eve a proper co-ordination it is necess ary to est ablis h proper oo-or di n a t i on procedures. Different types of co-ordi nating

bodies such as a oentr a l oo-ordinating offioe, the oounc~ l of stati stios,, speoial co-or din ating committees, etc. , might be est ab lished in the

differen t countries . The practioal measures for oo- ordinating inolude the pl anning of work pr ogr amme s , the review of questionnaires and forms , the establ i s hmen t of statistical standards, the frequent consul t ation be twe en the technical personnel of the various offices engaged in stat i s t i oal work and the co-ordination of publications . In any case the Central Statistioal Offioe should have a major part in the co- ordinat i on work. The co-ordinating offio~ or body should have legal authorit y to be able to oarry out the work properly .!!

!! See Handbo ok of Statistio al Org aniz a t icn , Seri e s F, No.6. United Nations, New York , 19 54.

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B. Purpos e s

4.1 One of the most importa nt purposes of the collecti on and compi lation of industrial statistics is the formulation and implementat ion of industri al deve l opment plans. In most countrie s of Africa the industrial sector still accounts for a rela tively small pr opor t i on of the gross dome s t i o product or of total employment . Never t he l es s , in all ooun tri e s , the need for industrial programming and development has been increasing and economio development has involve d the expansi on of industrial

aotivities. Nany coun tri e s have foun d it important that the industrial developmen t progra mme be formulated and implement ed with an eye to inter-rel a t i on and balance among the var i ou s industries as well as

between 't he industrial sector as a whole and ot he r sectors.

An

industrial development programme generally re qu ires demand pro j e c t ions , analyses of costs, impor t s , int er-industry co-ordi na t ion, estimation of requirements in labour, ma ter ia l s ,' cap i t al and for ei8n ex cha nge. The analyses of cost-pric e structure and competit i ve st r engt h are made on the basis of cost, capacity, employmen t , wag es, price, et c., data. Industrial statistics are eve n more needed at the stage of imple menting industrial programmes, so as to permit a watch to be kept on the ac tua l progress of individual industrie s and of the indu strial sector as a whole as

oompared with the progress planned , as well as to dete c t lags and bottle- necks and to be ab le to formulate remedial measur e s.

4.2 The second important use of industrial st atistics, is for general

ec ~omic ana l ys is and for ana lys i ng the differen t as pe c t s of the development of industry. This use is , of cours e, closely related to the use of industrial stati stics'in the implementa t ion of industria l development pl ans. Gene r a l eco nomi c analys is calls for data which show the share of , and the role pl a yed by , the indu strial sectore in the deve lopment of the whole economy. Even if the share of the mining, manufacturing, and ele ctr i c ity sect ors is small, these are usually the mos t dynamic elements of the ec on omy and the change s in these activities will

influence such import ant fie l ds ae fore ign tra de, investment, consump- ticn, balance of paymen~s, emp loyment , etc. It is al s o necessary to

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examine the factors in the economy which have contributed to devel opment to clarify the relat ionships involved. For example, in oonnexi on with indus trial growth the following aspects of the economy could be ana lysed:

fi xed oapital for ma ti on , export and import , populat ion growth , labour pr oduc t i vi ty , and prices.

4.3 The third importan t us e of indu str i a l stat i s t i c s is for so-ca lled st a t i s t i cal purpos e s, which means simp ly that the in dus tria l statis tic s wi l l be part of an over -all quanti tative pi ctur e of the pr esen t situa- tion and pas t trend s of the whole economy. The appropria te industrial st a t ist i os wi ll help the oompilat ion of the na tional aooounts tables which are mos t import ant for general economio analysi s and forecasting. Industrial statistics are one of the basic elements in the compilation of input-output tables

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^wh^ioh ^{are va}^{l uable} ^to^{ols f}or enha n ci ng the abili ty to under s t and and guide the eoonomy. The major ity of the sector s in input-out put tables are usually in du strial, the othe r branohes of the economy bei ng presented in highly aggregated forms. This calls for de t ai l ed output and inpu t statistics . For marke t resear oh and plann i ng commodi t y balan oes are important tools. Consequently , because the indu stri al sector figu r e s prominently in the majority of commodity ba lances either as a producer or as a consumer , commodity data for pr odu ct ion, oonsumption and in some ca s es for stocks are neoessar y . 4.4 In order to formulate realistio and consistent progr ammes for indu stri al expans ion, to follow developments in the course of carrying out thes e programmes and to oompile nationa l accounts and other ,sta t - is tical tools, data are required on the followi ng aspects of the indus trial seotor:

(1) The structure and capacity of the indu s t rial seot or , inoluding the distr ibut ion of producti ve units (e.g. , estab l ishments ), fixed assets and labour employed ac cordi ng to kind of act i v ity , size distribut ion, eto. ·

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Abou~ co~pi lation ^see P: ob l ems of Input -OU t pu t Tables and Anal ys is.

Stud~es ~n Methods, _Ser~es F, No. 14. United Nations, New Yor k , 1966. Chapter III.

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(2) The level and trend of industrial act ivities , including the quantity of commodities produced and consumed as raw mater ials, fuels, et c. , and index numbers of product ion•

(3) The rela t i on s hi p between value of output and costs , in clu di ng value of output, value added , and its distribut ion among wages and salaries , propr ie tors ' earni ngs , pr ofi t s et c. , cost-br eakdo wn s, prices of pr oducts and mater ia l s , fixed assets , val ue and quantity of stocks, etc.

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c.

Me thodolog~

Scope, coverage and referenc~ per io~

5.1 To establis h a bas i s fo~ t~e whole indu stri al statis tical syste m and yieid the detailed structural data for economi c pl anning , it is neces s ar y that tho oomprehensive in quir y should cover all stati s ti cal uni t s within the gecBr a phi c bcundar ies of the count ry , in mining, manu- fac t uring, electrioity, gas and steam. The annual in quiries , as far as fea sib le ; should _o_ovo~ the larg o (sele c ted or samp l ed ) statisti cal units of the eame scope - mi.ning, manufactu r i ng , el e c tr ici t y, ga s and steam. The more current than ar~ual inqui r ies may have a more limited scope and coverage - sele cted statistica l uni ts in selec ted indus tri es. It is clear that because the comprehensive inqui ry wil l yield the base for all other inquirie s , what is emit ted from thi s inquiry wi ll be omit t ed fr om the others . This shou l d be bor ne in mind becaus e, despit e all thi s·, it may be neo e s oary to emit very sma:l (e.g. household) sta t i s t i oa l units, usually thos e whi ch are difficu lt to identify . Thus all the decisions on the scope and ooverage of the oomprehens ive inquir ie s will have det ermin ing effecto on all other inquiries.

5.2 In making decisions on the scope of an inquiry, it i s nece ss ar y to take into account that even in cases where the nationa l indu strial olassifi oat ion is tho best possibl e, there are al ways unit s which might be classified to two different branohes (e.g. bu toher iss or bak er ies can be olas sified ei t h er to the Iood industr y or to retail trade). It i s therefore neoessary that these ac t i vi ties be classifi ed consistent ly in all the in qu i r ies (i.e., if bakeries are clas sified to the food in dustry in an annual inquiry, they s~ould also be clas s i f ied to the food indu s try in the basi c in qu i ri es ) .

5. 3

^Taking ^{into a}^{ccoQn t t}ha t the annual in quir y has to yield data for helping and 'ia t chi.ng the :'.mplementation of the developmen t plan , including the provisi on of basic data for the compila tion of several series, the s e inquiri e s shou l d cover all indus tri e s whi ch are importan t in the countr y wi th reas onab l y large coverage. At the same time , the annual inqu irie s should be suff iciently limit od in cover age and scope that they are prac t i cable to carry out.

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5.4 In order to fol l ow development s in the economy as well as to detect significant chang es in the level of indus tria l act ivi ty , dat a ar e ne eded more frequently than annua l l y on some of the activities of important industrial es tabl i shmen ts. The St a ti s tical Commis sion recommended that governme n t s compile monthly or qua r ter l y indexes of production. As the study "Syst ems of Industrial Stat is t i c s in Devel oping Coun t r i e s"(E / CN.3/ 309 ) states . " •• • • •The limitati on upon mon thly data, both in terms of the

speed ne ce s sary an d the cos t whi ch is bearable, are quite severe. It is necessary to restric t in some way the nu mber of statistical units to be enumerated. The tec~~iques by which the restriction is accomplished necessarily differ aocor ding to the chara ct eri s tics of the par t i cu lar

industry." (See more of this in the paper "Annua l and Mor e Frequent Indu s t r i a l Inqui r ies in Afr ioan Countri es", para. 37). Thus, ge nera l l y speaking , the soope and ooverag e should be much le ss than in the annual in qu iry.

5.5 The reference periods for census, annua l and mor e frequent inquiries should be chosen in a way that one ma y be compared and checked against the other. For ex amp le , if the cal endar year is used for the annua l inquiry, then the oalendar year should also be used for the censuses. Or, if monthly or quart e r ly dat a are asked, the s e should be for calendar month or quarter and shou l d allow a li nk to be establ i shed with the annual figures. Procedures such as these could serve to hel p the super vi zi ng of data, and to make one inquiry comple mentary to the othe r .

The statistical uni t

5.6 In order to pro vide inf orma tion on indus tri al act i vi ty for the purposes ou t l i ne d abo ve , the data resulting from each kind of indu s tria l inquiry should be tabu la ted at least according to comparable categories of kind of indust r ial ac t i vi ty that are as homogene ou s as pcssible. Furthermore, in the infrequent compre hen s i ve inquiri es and in some

countries in the ann ua l inquiri es,classification of the re su l t s according to sub-divisions of the country and meaningf u l cat egori es of size

tabulating units are nee ded. The kind of ac t i vi ty classification calls for as homogeneous a unit as possible, the area classifioation cal ls for a unit which is at one loca tion , the size class ifi cat ion calle

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for a unit which is stable, not easily ohangeable by change of or gani za- tion, ownershi p, eto. Despite the faot that perhape the best answer to al l this is the establis hment-type unit (s ee International Re oommenda t i on s .

• in Basio Industrial Stat i s t i os ) - and·this wae foun d suitable by most African oountri es for their industri a l inquiri es - another sol u t ion may be pref er able in annual and more frequent inqui r ies . I f ol assifioa tion of annual industr ia l data aooor ding to geographic ar ea is not desired, it is possible t ouut i lize in annual and more frequent inqui r ie s a br oade r statistioa l unit (kind-of-aotivit y unit, enterprise). There are , however , some oper a tiona l advantages t~ uti l i zing the same statistioal unit in annual and more fre quent industrial surveys as in the less frequent oomprehensive in quiri es - name l y, the establishment. Employing the same stat i s t i oa l unit in each of the s e kinds of industrial inquiry conside=bJ.y faoili ta.tes the llfle .o£ induatrial <iireatories and other data derived fr om oompre hens ive inquiri es in de s igni ng and oarrying out

the mare frequent surveys ~~d in es t imating the result s .of these survey s.

5.7

Thi s praotice also si mpli£i.ee comparison <>:f data yielded by the di f f erent types of industrial in quir i e s. On the ot her hand, it may be easi..e.r and qu i cker to gather annual and more.fr equen t data for broa dar statistioal unit s than for establishments. This may be the cas e

especially for annua l and more ourrent data on inventori e s and expendi- . tures on fi xed ass ets , et o. Unless the use .f a broader statistica l unit materially fa ci l i tates the gather ing of dat a , it wou l d be·desirable

t~ utilize the sa me sta ti s tioal unit in all inquiri es.

5.8 The oo-or dinati on and int egra tion of the diff erent inqu iri es are great ly fao i li t a t ed by an appropriate Directory , which should be kept up-t o-date. It is usually not pos sib l e to keep a Direotory for all indus t r i a l units, but it might be feasible for the large ones. The ways and means of up-dating this Direotory ar e disoussed in the paper

"Annua l and More Frequent Industr ia l Inquiries in Afrioan countri e s ".

If the same statis t ical unit is bein6 used for all inquiries then the us e of the same Direotory for all inqu i r i e s will ensure that any differen oe s in the aggre6ated data are due to dif fe rences of soope , cove rage ,

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E/CN. 14/STAT/4 Page 14

etc. but not to om1 s s i onn of statis.ical uni.s. The use of a Direct ory will al s o help to ensure that the units are cla s sifi ed in the same way in all inqui ries. I f di f fe rent statis t ica l unit s are used in the different inquirie s (e.g: the estab l i shmen t in the·annual inquiry but the enterprise in the more frequ en t inquir i es) then a good Directory, which' includes both typ e s of units, wil l great ly faci l ita te the prob l em of

establishing a link between t':.e differen t inquiries: The Directory should include at least those large unit s which are covered by the annua l inqu iry:

5:9

It is necessary to menti on the que stion of the treatment of selected an c i l lar y activities: The Statis ti ca l Commi s sion' s recommendations pro-' vide,that the sta t is t i ca l u.~it utilized in indus trial inquiries should embr ace the ac t i vi ties an~ re s ources involveL in those activities which are ancillary to or in support of the production of goods and services' by the statistical uhit: Thi s approach avoi ds the difficu lt ies of sub~"

dividing res ource s an d costs betlle en di re c t an d ove rhea d ac t i vi t i e s ~ On the. other hand;' 'non-indu st r ial activit ies (transport, eati ng places, 'et c . ) carried on in suppo r t or one or more indu strial establis hments should not be in cluded as an integral par- e of the,sta t i s t i ca l unit if the non- indu s trial activities,are so orban ized and managed that separate data are available on these activities and the related resources. Some '~' ela

ti ve l y large ancillary units such as central offices , war e hcu ses or power plants, may serve rno=e tPAn one industria l establ i shment of the same enterpris e. In or der to avoid dis tor tions and omissi ons in the data gathered and compi l ed in indu s tr ial inquiri es, spec ia l at tent i on mus t be paid to the col l ec~ion of dc~a for tee central or large, sepa~a t ely

located ancillary units ; It is pos s i ble to add th~ data for the s e units to that for the indivi dual induct rial stat i s t ica l units served. In this approach the data relc ting to the centra l ancillary uni ts would be

al located among the industrial estabhshments ser ve d . Or, steps may be taken to trea t each contral or la r ge, separately-lo ca te d ancillary unit as a distin ct st a t i s t ica l unit for which data are gathered

separately: In this approach the data fOr the anci l lary unit would

be ola s s i fied ~,coo:" dins to tho main 5ndustria l ac t ivity of the statis tioa l

•

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E/mr.14!STAT!4 Page 15 '

unit s served . In an integrated syst em of indu strial statis tics, it is necessary_._, to dea_' l with this question of anci l l ar y units in su ch a way that ei ther they are treated consis tent ly in al l inqui r i es , or that any differences in their treatment, from one inquiry to another , are clearly stated ,on questionnaires and in publi cations .

The statist i cs to be compiled'and it ems of data to be ga thered

-

5;10 Taking account of the pre sent state of,industrial _s~atistics in most countries of Afr i ca the gui ding pr i nci ple, of developing the set of data whi ch should be gathered in the census , annua l and more frequ ent industr ia l st a ti s t i cs shou l d be more the feasibi l ity of the ga_, ther ing than

. ,

that of the requi rements . This is a very important poi n t to be under- stood and ackn owledged by the res ponsibl e authori t ies . It is quite clear that for development pl anni ng et c ." as many data may be required as in a developed country bu t in mcst ca s es it is not fea s i ble in a developing country to gather al l the data required withou t endanger i ng the whole operat ion . The development of an integrated indus trial stat~

is t i ca l system is a slow precess and should be very carefully planned, Taking into ac coun t that many African countries re c en tly carried ou t an indus tri a l census, the planriing based on this may st ar t with items to be included in the annual and more freqUent inquiri es;' Thes e questions are

discus sed in detail in' the paper enti t led "Annual and !.lor e Freq)ient bdus'tr1al Inquirie s in Afr i can Coun trie s".

5;11 What is' necessary to discuss here is the oonnex ion that shou l d be established between the data of the different 'inqui r ie s at the pl anni ng st a ge. The impor t an ce of this lies in the problem of establis hing' a clear-cut picture of the kind of data which ar e regarded in one inqUiry as oompl ement ary to the other and are enumer ate d as su ch. The most importan t it e ms are disoussed below.

(a ) Chara c t eri s t i cs of the Statistioa l 'and Tabulat ing Uni t

5.12 Among the basic purposec of an infrequent , comprehensive inquiry is to describe the structure and charaoter of the indust r ial seator of the economy and to provide the basis for a defi nit ive industrial

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.. :

E/ CN;1 4/STAT!4 Page 16 .

.,.

direct or y• .Inf orma tion .is.t hers fore.requ ired from this inquiry on the kind_. ._'of majqr_. activity_{. "}and s_-_.ize_.,: of the establ ishments c_,_.... overe d. For the same purposes, .i t .is .also desi rab le to ga t her informati on on the looa- tion of estab l ishments and th~ir..typ e: .of legal organi za t ion (e. g. whether the paren t legal entity is an individual proprie tors hip , oorporation, co- operative';

"'~t'd ;')~~:i1>e 'i:5r"ic/6ri6~ic '

ôfganiZâiiîon"

(~. g:.

^:^wh^e^{'ther part} ^of

a singJ.e or multi -unit'enter prise) . Data on localio~ wou ld provide in- ' forma t ion on the geogra phic distribut ion of _e_{s t}~blisllinents 'and data' on type of legal,and e o'onomi.o organization'wou l d furnish.'info rmat ion on the socio-eoonomio chara cter istics' of the indu strial sec tor . For purpos e svof'. the indust rial:di rectory ,"inf orma ti on is :also wan t ed on the na me and.address.of the of f ice'reporting 'data for the establi~hinent ,

which , .es peoLaLly in ·t he case of multi -unit organi za t ions , ma.Y diff er

from tha t of the establishment. '

.. .

^.

5.13 In annual in qu i r ies'and mor'e fr equent sur ve ys it is not ne c es sar y to ga t her 'or compile infor ma ti on on a number of the above characterietics~' Kind '6f activity~nd locati on are impor tant in tabu la t i ng the results

of annua L in qu iri e s, and on l y the former charact eristic is usually needed in compiling mont hly or quarter ly data. More over , it is not praot i ca l to gather,'in monthly

0 ;

^qua^{r terly} ^sur ve ys , the information required to

·').::·t·:,". ':.,:: .. , .

'a s c er i ain the kind-of-act ivity code. This code is best derived from the reeults of the annual in qu i r y or from the indu strial direc t ory.

(b) Employment and Wages and Salar ies paid

5.14

Employmen t is one of the most import ant data us ed as ,an indioa tor of the level .of in dus trial activi ty, and shows the con t r i bu t i on of the indu s trial sec tor ,to the opportunit i es for , and the cond it i ons of, labour and is usually used for measur ing the size of stat ist i ca l units, the st ructure of industry, etc . The import ance of the employment

: ~ .c: '. :: ~ . .".' ,.v. -' ·'~- ^....:.., '~ :~~^•.^..:.. ^.;^{" ,} ^. ~ ^-. ^•^•~ ^.:,"^{. ,} ^: ^- :'l'~ ^{,, ' "}

figure s thUs"justifies 't he""ih c I u iii oii"of"some'employment data an every indu s trial inquiry. In compr-ehenei.ve "i n quiries the empLoymerrt data will help 'to evaluate tl1estructure of ,industry and to determi ne the size of the units in anhua l in qu iri es; The emp loyment data 'may be used in relation to output; in monthly or quarter ly inquirie s it is us e d as one

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•

indicator of industnal aoti vi t y. J:.:o poi.nt a shou ld oe emphasize d her e:

(i) the data to be enumcr3tcd on employment should be much mor e detai led in the comprehensive in ~uiry tha n in the annua l , more detailed in the ann~al ~han in the more fre ~u ent. In the la s t , usually or." figure (aJ.l e:'gaged or oper-a t dve s only) will be 3'-lffi.cj.e:rtj

(i i ) the data collecte d. in one inqu iry usually may n(,t be 'usa b le "r shou ld be used oarefu l ly ao complementary to other data,

because of ..:~-rf erence s in soope, coverage, etc .

5.15 The usefu ~ne s s of data on employees in measuring the produotivity of labour ~~d in appro~imuting averaee uage and salary payment s, as well as.in.de scri bi ng the st r -lctur e of inm\ stria 1 empJoymun t, is enhan ce d by dividing e~p1~yees into dJ.fferent ca ~ogorie o (au0ording to st at us, function, occupa ti on, s'dll, etc,). Somo of these cla s.sifications might be sought in the cencun or in the a='-'3.1 ir.~ui:des and others may be enu m-

era te d l;"i th ~he help vl ~0...2. _. sample - Ln qui.zi.ea,

5.16 ~!an-houra wo~'ked 1y operat.ives dur:.ni; the period of inquiry i s a better statistic th~n averago n~rnber of operat ive s dur i ng the period for purpos es of measurir.g amount "f ompl o;y;;;ent , apP:·o:~im3.te avera ge "age ra te s, or labou r produ ctiv·i t y . The col ln.otion of these data may be annual in all th os e countri es ~hore' recorda on this are available. It

shou ld be noted., hOW6V-01', that \there "~ont.ra.ot Lebouz- is in oommon use

(for instance,'i n mininG) , it ~ill not be fed sible to gat her data on man-hou rs worked by opora~ives.

contr i - 5.17 The col lec tion and com?il~tion of tota l wage s and salarie s

are usua l l y covered in the comp~ehensive and annual inquiries. itemis uanted for a n~ffib22 of p~rpocoB (e.g. , to evaluate the bu tion to Labour- Ln c c mo and tho labour costs of different kands

paid Thi s

of industrial ac-:,~vHy) . "nero the number- of cmploJ'"es is di vi ded ac cord- ing to :~'l: ....,.~c-- '. s tatus, ~·lages and eaLaa-y payments shou l d be sub- di vided in the ·_~o fa s hi on in order to 00tain better approx i ma t i on s to average lffigOS and aalaries paid per employee.

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E/CN.14/ STAT/4 Page 18

(c) The Capacity of Installed Power Equinmen t

5.18 A count of the install ed power capaoity of installed units provides an indi oa t i on of the level of mecha n i za tion attained by the variou s industr ial branches. The capacity of installed power equ ipme nt per operative or per man-hour usually has a strong cor rslation with labour productivity. It would the ref ore be very useful to have these data if Bvailable annually and , of cours e, they should be enumerated in the compre hensive inquiries.

(d) The Capacity of Other Type s of Maohi n ery

5.19 The oompilation of da ta on the capaoity of seleoted kinds of maoh- inery may be of value. Becaus e of their more re s t r i ot ed uses, as we ll as the gr ea t difficulties in collect ing these figures, it is not advis- able in African countr ies to include these items in the comprehens ive or regUlar current in quiries . But the colleot i on of these dsta may be carried out in ad hoc inquiries.

(e ) Expenditure on Fixed Assets

5.20 Mea sures of the expenditures on fixed assets by industria l units are in considerable deman d. Usua lly figures are obtained not only on ex pendi t ures for new fixed asset s , including the construction and al tera t ion of such asset s on own account , but also on expe ndi tur e for used fixed as se t s and sa l e s on such as se ts. Howeve r , for the economy as a whole, expenditures on new fixed assets are of particular int ere st on an annual basis. These ar e the ex pendi ture s which become par t of gros s capital formation and the da t a are needed for national aocount purposes. From this it fol lows tha t the data on expendi t ur e s for new and used fixed as s e t s and for sales of such assets should be enumera t ed annually and in the oomprehensive inquirie~. While the annual inquiry will yield data for the estima t ion of gros s capital formation, the compr ehen s i ve inquirie s will yie ld data of bet ter cover age.

5.21 The di f f i cu l t i es of gather ing consistent and mean ingfu l figures for the depreciation and st ocks of £txed asset s makes it necessary to omit these data from all the regular in qu i r i e s.

•

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-. 1"

(f) ',I nvent or ies , .,

, 5.22 The data on inventori es are used as an import ant economi c indica-' tor . They are al s c nec essary for the oa lculation of gro ss out put , value added and'consumpt i on data in case only data on shipments and purchase s ar e ava i lab le. These reascn s make it necess ary to collect the da'ta on stocks in the annu al and in the compr ehensive inquiries. It may be ne ce s s ary and fea sible in some count r i es to have dat a on the stodksof some's ele c t ed'impor tan t products and irtdu strial raw mat er i a l s - in quantity and'va l ue - at the end of the year , or , for a few selected commod:lties,"at mor e frequent 'inter val s. But the data on stocks 'of

. ^'

commoditi e s may re quire, even for the large industrial units, excessive

;,

amounts cfwork and difficulty. In mos t 'coun tri e s, therefore, these data should be'ex cluded from the regular inquiries.

(g) Input and Output of Goods and S~rvices

5.23 The most import ant dat a of indu strial inquiries are the data on the character and value and quan t it ies for inputs and ou t puts of the industrial units. These da t a ar e basic to assessing the role of iridustrial units

in the econo my and thei r contri buti on to the level of pr odu ct i on. These data may help to de'l i neate"t he whole ec onomy through input-output tables. They are also ne eded for man y kinds of econ omic ana lys i s and statistical calculation.

(1 ) Input

j:

5.24 The total cost of ra w mater ia l s , fuels and supp li e s , electrical energy and wo!k subcontract ed ?ut , is needed annua lly for the estima- ti on of value added, and , of course , it is nee ded in the compreh ensive inquiri es. In most coun t r i e s , ,t he s e,da t a may be ,re qu es te~ annua l ly. If this pre sent s diff i cu lt ie s , it may be suf f i ci en t to enumer a t e thes e data in the comprehensive inqUiries , and use some up-dati ng procedure tc make the annua l es ti ma t e. Sta t is t ics on select ed individual raw materials,' fuels, and elect r ica l energy consune d are als o want ed in ccn structing ccmmcdi t y and energy balance shee ts and input-output

-- .

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aocounts and in evalua ting quantit ie s consumed and unit values,for materials andi fueLs relative to quant i ties pro duced and uni t values for output. The enumera t ion of indivi dual ra w mater ia ls an d fuels mayor ma y not be feasible in the annual in quiri e s ; the dec i s i on on this depends on the poss i b i li t ies of the re s pond ent s tO,bear thi s bu r d en and ove r come the difficulti es. The se data should certainly be enume r a t ed in the comprehensive inquiri es. On the other hand , the enumer a t i on of the con- sumption of el ec t r i oa l en~rgy will not gene ra lly cau se any difficulties. This ver y important indica tor may theref ore be enu merated in all industrial inquiri e s. It should be not ed, however , that in the cases of some kinds of indus~rial ac t i vit y, curr ent figures of the qua n t ity of selected raw materials ,con s umed are more ea sily gat hered than current figures of the' qua n t i t y of select ed ,commod itie s produ ced. This may be the oase for industrial units making a oon si derable range of products but consuming a limited nu mber of raw mater ials. ..

(2) Output

5.25 The requirements for data on the oomponents of the gr os s output and the individual produots of in du strial units are si mi l a r in oharaoter to those for da ta on the indust r ial oosts of the s e units. Howe ver , usua lly figures of gross output and indivi dual oommoditi es ar e needed

more than figure s of industrial inFuts, in par t beoause of the use of some of the former items as indioators of the level of aot i vit y of industrial units. This is the reason that ou tpu t data have a higher priority in the interna ti onal re co mmenda t ion s than 't hose of input. 5.26 The data on gr oss ou tpu t are needed for the calculation of the value add ed , but in some indu stri al aot i v it ies ma y be us ed for the oalculati on of index nu mbers of indu strial produ ct ion. In these latter oase s the gros s outpu t may be needed more frequen t l y than in the annual in qu i r i e s , bu t in some cases it wil l be suff ic i e nt to enumerate these dat a annua l l y .

5. 27 Sinoe the most important us e of the dat a on the production of sel eoted individu al commodi ties is for the compilati on of index numbers

)

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E / cn.14/STAT/4

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of in dustrial product ion , it is necessary to ool lec t these in the more frequ ent than annual inquiri es. In the annual in quiries it might be necessary to add to the nu mb er of the commodit ies whi ch are covered in

• the mor e frequ ent inquirie s whi le still enu mera t i ng the same commodities

agai n because of the better coverag e. In the comprehensive inquiri es, it might be necessary and feas i ble to enumerat e al l the commodities , which ma y then serve as benchmark data for all other inquiri e s. The gr os s value of the total output of indu s trial un its includes, of course , oonsiderable dupli cat ion between thos e units, as well as bet ween them and other sec tors of the economy. Value added is net of much of th is duplication. Val ue added should be calcula t ed fromthe input and out pu t statistics. It might theref ore be derived when the nece ssary components discussed above - ar e enumera t ed.