Description of methods and sources for Albania - INSTAT

IPA 2009 Multi-beneficiary StatisticalCooperation ProgrammeThe estimation of Non-observed economy for the year 2006 is not done according tothis method due to lack of information on the supply side. No survey was done in2006 from the supply side that we could use for the calculation of labor input fromthe households. Estimations are based on the recommendations given by foreignmission, taken into account the trends and specific characteristic of differentbranches in Albania. Under these conditions, NOE has been estimated as a trendbetween the years 2001-2005. Future estimates of non-observed economy will beimproved by the establishment in 2007 of the LFS, a survey specifically designed forlabor statistics. Hence when we will start to use the figures of LFS we also intend torevise the estimation of NOE for 2006.7.3.4. Estimation of Non-observed economy in Agriculture and FishingThe NOE of Agriculture sector is estimated by “expert method” due to lack ofsources information on labor market. The “expert method” is based on experts’opinions where they assess the share of NOE in each branch of economic activity.These experts provide percentages that represent the value of output and intermediateconsumption under-estimated in branches of NACE A (Agriculture, hunting,forestry) and NACE B (Fishing). The percentages are applied to the observed outputand intermediate consumption of these two sectors. The way how the observedoutput and intermediate consumption in those branches are calculated, is shown inchapter 3. The non-observed value added is the difference between the non-observedoutput and non-observed intermediate consumption. The following table presents the“expert method”.52Table 7.2: Illustration of Expert method of Agriculture, hunting andforestry in the year 2006In Million LEKBranchesOutputIntermediateconsumptionValue AddedAgriculture, hunting andforestry (observed value)195,706 63,656 132,050Percentage of NOE (in %) 14 10Value of NOE 27,319 6,363 20,956110/236