Regional accounts: an introduction Viet Vu

Transcript:Regional accounts: an introduction Viet Vu:
Regional accounts: an introduction Viet Vu Consultant to United Nations’ Statistics Division 15-17 March 2010 Problems to be tackled in the compilation of regional accounts Issue 1: Toward a definition of a regional economy according to SNA 2008 Definition of regional economy (a state, province, or district) and its residents when no international definition has been proposed Recommendations Issue 2: Regionalize multi-regional enterprises at data collection stage: Method for imputation in data collection, Treatment of multi-regional enterprises and treatment of national industry. Issue 3: Regional GDP compilation Regional GDP by estimation/extrapolation Evaluation of data requirement by three approaches: production, income and final expenditure. Recommendations. Problems (continued) Issue 4: Annual and quarterly GRP. Issue 5: Toward demand approach. Issue 6: Toward regional household income. Issue 7: Issue of informal activities (other session). Issue 8: GRP in constant prices and deflation (other session). Issue 9: Issue of institutional arrangement: centralization versus decentralization (other session). ISSUE 1 Toward a definition of a regional economy on the basis of the SNA2008 SNA2008 and regional accounts SNA2008 has not explicitly discussed nor set standards for regional accounts. However, SNA2008, unlike SNA1993, has redefined the statistical unit in such a way that any local unit in a region even without any sale, will be recognized as a production unit (or an establishment) as long as it incurs costs of production (expenses on goods and services, wages and salaries and owns fixed assets). The rest of a regional accounts can follow national accounts as long as one can clearly define and delineate a region, and its resident units in terms of institutional units, production units, consumer units within it. Residents of the national economy or a regional economy Whether a unit is a resident of a location (national or regional economy) depends on whether it has the predominant economic interest in it or not. A predominant economic interest has the following key features (SNA2008, para.4.10-4.14): Effective economic control of a single government in terms of rights to ownership (land area, airspace, territorial waters) and to exploitation (fishing, fuels, minerals). Government authority is reflected in registration, license, lease requirement, tax payment, royalty payment. Existence of a location, dwelling, place of production where production activity takes place for a finite but significantly long period of time (1 year or over) Concept of regional economy on the basis of SNA2008 concept of the national economy National economy Regional economy Residents