Description of methods and sources for Albania - INSTAT

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IPA 2009 Multi-beneficiary StatisticalCooperation Programmeand by the expenditure approach are not eliminated in the process of finalization ofestimates.Therefore, the practice to show or publish statistical discrepancies as the differencebetween GDP by the production and by the expenditure approach is used incompiling and publishing national account data. Statistical discrepancies arepublished together with changes in inventories. The table 6.1 shows the differencesbetween the two approaches of GDP.Albanian National Accounts sector, during the TWINING project, in cooperationwith ISTAT has tried to develop a simplified input-output system based on asymmetric table (IOT). This approach did not completely fulfill ESA95recommendations since it did not include the compilation of supply and use tablesthat are not possible to compile, given the current state of the art of basic statistics.Thus, this method is not used yet to make balancing procedure between the two GDPapproaches in Albania. INSTAT will start to develop a strategy in order to makeSUT and to collect the necessary data sources to do it in the future.49Table 6.1Differences in two approaches of GDPIn Million LEKProduction ApproachExpenditure ApproachAgriculture, 154,648Final Consumption ofHouseholds 680,323Industry 88,207Final Consumption of GeneralGovernment 89,411Construction 113,724 Consumption of NPISH-s 1,371-Trade, Hotels andRestaurants 166,125-Transport 43,350 Gross Fixed Capital Formation 343,882-Post and Communication 31,614-Other Services 197,517 Net export -208,067FISIM (-) 30,446Change in inventories &Taxes on products 121,188 statistical discrepancies *-24,712Subsidies on products (-) 3,718GDP 882,209 GDP 882,209* The item “Change in inventory and statistical discrepancies” represent thedifferences between the two approaches of published GDP.6.2 Other approaches used to validate GDPThe most important step to validate the estimates of GDP level and particularlyexhaustiveness was the introduction of Input Labor Method in year 2005.Thus, the labor input statistics are used for the validation of estimates of GDP by theproduction approach, which allows the analysis of data exhaustiveness by activitylevel.102/236
IPA 2009 Multi-beneficiary StatisticalCooperation ProgrammeCHAPTER 7: EXHAUSTIVENESS ADJUSTMENTS OF GDP BYPRODUCTION APPROACH7.1. IntroductionTo ensure exhaustiveness of GDP estimates, the staff of National AccountsDirectorate has used the so-called “expert” method to measure economicunderground activities by using existing data sources covering the period 1996-2003.The method is based on experts’ opinions where they assess the share of NOE ineach branch of economic activity. This share is then used for grossing up data onoutput, intermediate consumption and value added for each branchThe production approach to estimate GDP, the methodology currently adopted forNOE estimations, suffers from a high degree of subjectivity. For this reason,INSTAT Albania plans to improve it and shift to a new methodology mainly basedon a statistical approach. This will be done with the help of two different projectsaimed to provide technical assistance to INSTAT in the field of National Accounts.The projects are funded by the EU Commission (through the CARDS programme)and by the IMF.The twinning project between INSTAT and the Statistical Institute of Italy (ISTAT),which was started in 2004, provides assistance for the improvement in estimation ofthe non-observed economy in Albania, by developing and testing a methodology forNOE estimation based on the Italian approach of the labor input method. The newmethod is used starting with the figures of years 2001-2002-2003.7.2 Input of labor, sources of informationEstimates of employment are used to achieve exhaustiveness in national accounts bytaking into consideration the non-observed economy. Information sources thatcontribute to estimate of labor input are classified on basis of statistical units thatprovide information of sources on labor demand (which are the Annual StructuralBusiness Survey and Annual Accounts Statements) and sources on labor supply(Census of 2001 and LSMS ).7.2.2. Sources of data for the supply of laborIn the benchmark year 2001 the main source of information on the labor market inAlbania was the Population and Housing Census of 2001. It gave quite a completeenumeration of population and employment in the country.The source of information of labor market for the following years 2002-2005 hasbeen the Living Standard Measurement Survey (LSMS). This is a sample survey(3660 households) covering all districts of the country. This annual multipurposesurvey is mainly oriented to measure the households’ living standard in the country.103/236
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Description of methods and sources for Albania - INSTAT

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