Description of methods and sources for Albania - INSTAT

IPA 2009 Multi-beneficiary StatisticalCooperation Programme7.3.2. Productivity of labor inputProductivity measures based on VA per employed were calculated according to theNA Department for branches and for dimensional classes. (See Table 7.1.1, col. 10,11, 12, 13)From the Italian experience, the per capita value added made in undergroundeconomy is lower than the per capita value added of observed economy and for thisreason we have to use the per capita value added by small enterprises which is thelowest per capita value added.Another phenomenon exists in our economy, namely, per capita value added oflarger enterprises is the smallest and this happens because those enterprises intendto increase the intermediate costs and decrease the output.In regard with the above phenomenon, the use of the smallest per capita value addedin each branch was deemed reasonable in spite of the size of enterprise. Suchestimate allowed to distinguish the productivity of observed from non observedactivity (e.g., considering the productivity of the non observed activity equaling tothe productivity of the less efficient enterprise).So the productivity of hidden labor input (VA/ILNOE) is equal to the minimumproductivity of observed labor input (VA/ILOE) in each branch in spite of the sizeclass (See Table 7.1.1, column 14)7.3.3. The value of Non-Observed EconomyNow it is possible to calculate (by branch) the Total Value Added of NOETOTVANOE = VA/ILNOE * ΔIBy this procedure we may obtain an estimate of VA taking into consideration acomponent of NOE, defined as Underground Economy (See Table 7.1.1, col. 17)106/236