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ISIC Revision 4: Top-top and Intermediate Aggregation Structures (for SNA data reporting by activity) OECD proposals PowerPoint Presentation
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ISIC Revision 4: Top-top and Intermediate Aggregation Structures (for SNA data reporting by activity) OECD proposals. William Cave OECD Statistics Directorate. What is ISIC?. International Standard Industrial Classification of All Economic Activities (ISIC)

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ISIC Revision 4: Top-top and Intermediate Aggregation Structures (for SNA data reporting by activity)OECD proposals

William Cave

OECD Statistics Directorate

OECD WP National Accounts

October 2005

what is isic
What is ISIC?
  • International Standard Industrial Classification of All Economic Activities (ISIC)
  • The official activity classification of SNA
  • To classify economic entities (units) according to activity they carry out
  • Original ISIC 1948
  • Rev 1 1958, Rev 2 1968, Rev 3 1989
  • Minor Revision 3.1 2002,
  • Major Revision 4 planned for 2007

OECD WP National Accounts

October 2005

design principles priorities for isic rev 4
Design principles & priorities for ISIC rev 4
  • Improve international comparability
    • convergence of regional classifications
    • E.g. NAICS,NACE,JSIC,CSIC,ANZSIC etc
    • engage more countries & regions in ISIC design
    • target for international comparability at least 2 digit level
  • Relevance
    • Information sector, internet , telecoms
    • OECD ICT definition
    • environmental services
    • new technologies
    • growing business service sector
    • health services
    • tourism
    • agriculture
  • Continuity – long time series
  • Level of detail for an international classification?

OECD WP National Accounts

October 2005

isic 3 and isic 4 top level
ISIC 3 and ISIC 4 top-level

OECD WP National Accounts

October 2005

isic rev 4 a top top structure what are sna needs
ISIC rev 4: A Top-top Structure? What are SNA needs?
  • SNA AEG, OECD and Eurostat national accountants have agreed need for top-top structure to ISIC rev 4 of about 10 categories
  • OECD national accountants proposed that intermediate aggregation of 30-40 categories useful for international comparison within OECD. SNA AEG in Dec 2004 were undecided.
  • Currently OECD and Eurostat use A6/A17/A31/A60 aggregations of ISIC rev 3 in national accounts questionnaires

OECD WP National Accounts

October 2005

proposed set of isic 4 sna data aggregations
Proposed set of ISIC 4 SNA data aggregations?
  • A*10/11 top-top
  • A*21 = ISIC rev 4 Sections
  • A*38 = ISIC rev 4 Sections + 17 sub-sections (intermediate)
  • A*88 = ISIC two digit divisions

OECD WP National Accounts

October 2005

oecd exercise
OECD exercise
  • Autumn 2004 set aim to agree top-top and intermediate ISIC 4 aggregations for reporting national accounts data by activity
  • Initial proposals from Eurostat, UNSD and France
  • OECD analysts raised issues:
    • international comparability, relevance, and continuity for long time series analysis;
    • the needs of input-output, policy interests, productivity analysis, separately identifying activities that follow different tracks in economic cycle
  • OECD SNA Industry EDG established to encourage participation
  • Proposals developed in consultation with Eurostat and UNSD

OECD WP National Accounts

October 2005

process
Process
  • First OECD proposal circulated February 2005
  • Revised proposal in light of comments 24 May
    • Set out specific questions on most contentious issues
  • Sent to all OECD member national accountants, EDG, classifications experts, Eurostat, UNSD
  • Reviewed by UNSD Expert Group on Classifications June 2005
  • Comments received from 15 countries, Eurostat and ECB

OECD WP National Accounts

October 2005

constraints
Constraints
  • Preference for following ISIC structure
  • ISIC 4 draft was changed in March and August 2005 – now finalised
  • Some ISIC structural and ordering changes on real estate and public administration made for top-top
  • Take into account current ISIC 3 aggregations
  • Consider Eurostat A65 draft & US BEA GDP by industry (~65)

OECD WP National Accounts

October 2005

oecd proposal for top top aggregation
OECD proposal for Top-top aggregation

OECD WP National Accounts

October 2005

illustrative v a weights for selected countries
Illustrative v.a. weights for selected countries

OECD WP National Accounts

October 2005

responses on top top
Responses on top-top
  • i) Group OPQ and RSTU or ii) O and PQRSTU
    • i) 9 ii) 7 very close but chose option i)
  • Support A10/11?
    • Yes 14, No 2
    • Two suggested A12 with mining
    • One favoured A10 combine L with MN
    • One favoured A6 if to be used for quarterly reporting

OECD WP National Accounts

October 2005

proposal for intermediate aggregation a 38
Proposal for intermediate aggregation A*38

OECD WP National Accounts

October 2005

proposal for intermediate aggregation 2
Proposal for intermediate aggregation 2

OECD WP National Accounts

October 2005

proposal for intermediate aggregation 3
Proposal for intermediate aggregation 3

OECD WP National Accounts

October 2005

issues for intermediate aggregation
Issues for intermediate aggregation
  • Comparable SNA data reporting for Europe, N America and Asia-pacific and preferably wider
  • Follow ISIC order and hierarchy
  • Consider analytical relevance and continuity
  • ICT, R&D, Energy, Distributive trade
  • Keep approximate A31 level of detail for manufacturing – for continuity and robustness of data
  • More service activities
  • Eurostat and US A65 levels

OECD WP National Accounts

October 2005

responses on intermediate proposal
Responses on intermediate proposal
  • Not to break out mining of energy materials
    • Yes 9, No 5
  • Combine Section G Trade divisions into one for international comparability
    • Yes 11, No 3
  • Agree split on human health and social work
    • Yes 12, No 3
  • Break out R&D
    • Yes 13, No 3
  • Break out manufacturing at about same level as A31
    • Yes 10, No 1
  • Keep the group manufacture of transport equipment as in A31
    • Yes 9, No 4

OECD WP National Accounts

October 2005

questions and proposed next steps
Questions and Proposed Next Steps
  • Can these proposed aggregations be accepted for SNA data reporting? In particular:
  • Do you agree the A*10/11 proposals are suitable for an ISIC top-top aggregation for SNA data reporting
  • Do you agree the proposed intermediate A*38 is suitable for SNA data reporting?
  • Any further comments are invited
  • Subject to delegates views a final OECD paper would be submitted to ISWGNA in November for consideration by the SNA AEG January 2006
  • P.S.: Should a standard grouping for service activities be recommended or not?

OECD WP National Accounts

October 2005

thank you for your attention
Thank you for your attention

OECD WP National Accounts

October 2005