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European profiling: a crucial tool in the current European developments on statistical units

Session 3: The role of the statistical business register in the modernisation of the statistical production and services. European profiling: a crucial tool in the current European developments on statistical units. D. FRANCOZ Eurostat

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European profiling: a crucial tool in the current European developments on statistical units

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  1. Session 3:The role of the statistical business register in the modernisation of the statistical production and services European profiling: a crucial tool in the current European developments on statistical units D. FRANCOZ Eurostat Joint UNECE/OECD/Eurostat meeting of thegroup of experts on business registers3-4 September 2013, Geneva

  2. Background • MEETS 4-year program to modernise business statistics • ESSnet profiling • ESSnet consistency • Conclusion: need to change the statistical implementation of the economic definition of enterprise • Currentprojects: • Revision of the regulation on statisticalunits has started • Includeimplementationrules • Implementation of European profilingisgoing on • For the largest 500 groups in Europe

  3. A new model of statistical units Why? • To increase consistency between European countries in business statistics • The current definition of the enterprise is not applied homogeneously in all EU countries • In a lot of countries, the legal unit is used as a proxy of the enterprise • To take into account the globalisation of the economy • Current regulation on statistical units in force since 1993 • The current implementation of the enterprise' definition does not take into account the global dimension of the enterprises • Statistics based on current enterprise are describing artifacts, and are diverging from economic reality

  4. A new model of statistical units Why? • To take into account the globalisation of the economy (cont'd) • Indicators based on the legal units can lead to misinterpretation in the frame of global enterprise groups • Misclassification of economic variables according to the NACE activity code • Double counting for some non-additive variables • indicators relating 2 economic variables which are not “managed” in the same legal unit • 2 dimensions to be taken into account: • To improve the relevance of national business statistics in the European countries • To produce better EU statistics

  5. Organisation of enterprise groups multinational • Economic organisation at the worldwide level • Global dimension: refers to the strategy of the group • Local dimension: refers to constraints • Splitting up of the production into several legal units In order to: • Reduce costs • Increase competitiveness

  6. The new model of statistical units • Takesintoaccountbothdomestic and global entities • Top down approach to delineate the enterprises • 2 geographicallevels of enterprises: • The global enterprise • The truncatedenterprise

  7. The new model of statistical units

  8. The new model of statistical units

  9. The new model of statistical units

  10. The new model of statistical units

  11. The new model of statistical units

  12. The new model of statistical units

  13. The new model of statistical units

  14. The new model of statistical units Allowsboth national approach And EU approach For data collection

  15. The new model of statistical units 3 types of delineation: • Use of existing data • 1 Legal unit=1ENT • 93% of LeUs • Automaticprocedures • Small or simple groups (DEG or GEG) • 5% of LeUs • Profiling • Large and complex groups (DEG or GEG) • 2% of LeUs

  16. European profiling Main features • Central definition of the global and truncatedenterprises • The country of the headquarters profiles for all the countries involved • 2 main options for collecting data on the enterprises • National collection (main option) • The partnering NSIs assess the enterprisesdefined by the country of the headquarters • Delineation and characteristics • Feasibility of data collection • Central collection (for a long term perspective)

  17. Profiling implementation A collaborative process 3 types of cooperation

  18. Profiling implementation A collaborative process 2-Within NSI: betweenprofilers and Business statisticians 3-Between profilers in different NSIs 1-With the Group

  19. European profiling European strategy • Central organisation to help the NSIs • Development of a web platform: the IPT • For profilers to exchange information on groups underprofiling • For statisticalusers to access information on enterprises in profiled groups • Development of rules to smoothen the process • Calendar for profiling cycle • Support to NSIs in establishing an agreement for data collection with the groups

  20. European profiling Benefits • European Statistical System-wide gains • The country of the headquarters profiles for all the countries involved • Enterprises of one group are defined consistently for all European business statistics • Centrally defined enterprises made available for all national statistics • Benefits for respondents • Profilers and the group talk the same language • NSIs offer the group a central contact point • Profiling decreases the response burden for a group

  21. Example 1

  22. Example 2

  23. Thank you for your attention

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