Description of methods and sources for Albania - INSTAT

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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
IPA 2009 Multi-beneficiary StatisticalCooperation Programme53Table 7.3: Illustration of Expert method of Fishing and Forestry in the year2006In Million LEKBranchesOutputIntermediateconsumptionValue AddedFishing (observed value) 3,333 2,077 1,256Percentage of NOE 21.9 16.6Value of NOE 729 344 385The “Expert method” used in Agriculture and Fishing could be explained muchbetter by the following formula:-Agriculture, hunting and forestryNon-observed Output = Observed output * Percentage of non-observed outputNon-observed IC = Observed IC* Percentage of non-observed ICNon-observed Value Added = Non-observed Output – Non-observed ICWhere the percentages of non-observed output and IC are given by experts and areequal to 14 % for output and 10% for intermediate consumption- FishingNon-observed Output = Observed output * Percentage of non-observed outputNon-observed IC = Observed IC* Percentage of non-observed ICNon-observed Value Added = Non-observed Output – Non-observed ICWhere the percentages of non-observed output and IC are given by experts and areequal to 21.9 % for output and 16.6% for intermediate consumption7.4. Exhaustiveness adjustments by activityExhaustiveness adjustments by activity are shown in table 4. The higher value ofnon-observed economy was produced in the sectors of construction, trade and hotels.111/236
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