Description of methods and sources for Albania - INSTAT

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IPA 2009 Multi-beneficiary StatisticalCooperation Programmeincrease in the demand for new buildings. In addition, the biggest towns, particularlyTirana and Durres, are experiencing a considerable concentration of business: bothcities alone count for approximately 67 percent of all companies with foreignparticipation operating in Albania.Construction activities include a large number of small enterprises producingservices directly to households. Total gross value added of construction in 2006 isestimated at 123 277 million LEK or 14.30 percent of total gross value added.3.12 Construction (F)3.12.1 IntroductionIn this industry production is carried out by enterprises and own account constructionactivities of households. The number of self employed persons in constructionrecorded in business register is very low, because the majority of self employed arepart of informal activities. Construction in Albania is a growing business, offeringgreat investment opportunities, since the rapid urbanization in the past decade iscausing a dramatic increase in the demand for new buildings. In addition, the biggesttowns, particularly Tirana and Durres, are experiencing a considerable concentrationof business: both cities alone count for approximately 67 percent of all companieswith foreign participation operating in Albania.Construction activities include a large number of small enterprises producingservices directly to households. Total gross value added of construction in 2006 isestimated at 123 277 million LEK or 14.30 percent of total gross value added.30Table 3.23: Construction, 2006In Million LEKGross Value AddedOutputIntermediatePercentageTotal StructureConsumptionof TotalTotal 336.802 223.078 113.724 100.0 14.30Enterprises 151.429 110.975 40.454 35.57 5.09Exhaustiveness 185.373 112.103 73.270 64.43 9.213.12.2 Data sources and methodsFor enterprises’ data sources (annual account statements, annual business structurebusiness, VAT file) methods are the same as for other industries. Besides the mainactivity, data sources obtain other activities as well such as sales of constructionmaterial.64/236
IPA 2009 Multi-beneficiary StatisticalCooperation ProgrammeOwn-account construction by households for all dwellings’ construction byhouseholds is not estimated yet, because the data from Household Budget Survey andLiving Standard Measure Survey are not solid data to be used for estimation of thispart.3.12.3 Output in data sources, correction and adjustmentsCoverage in basic data sources is not good and underreporting and misreporting isrelatively higher than other branches. Output equals the sum of sales on domesticmarket, changes in inventories (work in progress for this branch is significant), trademargin as the difference between the value of sale and the purchase value of soldgoods for resale (as mentioned in data sources like secondary activity), and ownaccount production which entirely consists of gross fixed capital goods.The final output value of the construction is estimated at 336 802 million LEK andinclude adjustment for misreporting (self employed persons) and underreporting andnone of them includes the own production of households.3.12.4 Intermediate consumption in data sources, corrections and adjustmentsConceptual corrections of intermediate consumption are standard and the same as forother branches, they do not include FISIM. Exhaustiveness adjustments arenecessary for coverage of non surveyed enterprises, misreporting and underreporting.Final intermediate consumption is estimated at 223 078 million LEK in 2006.3.13 Trade (G)3.13.1 IntroductionThe main activities of trade (wholesale, retail trade and repair services) are related tothe redistribution of goods. Primary output of this production is measured as thedifference between sales of goods (turnover) and the purchase value of sold goodsfor resale. Data sources turnover and the purchase value of sold goods for resale areshown separately and this allows direct estimation of trade margin as output ofwholesale and retail trade as well as trade output as secondary activity in all otherbranches. However, it is likely that this “statistical” contribution largely underevaluates the actual contribution of trade to the GDP growth, owing to the presenceof a large number of informal businesses in this branch, whose value added is verydifficult to be accounted properly.Wholesale and retail trade activities include a large number of small enterprises andtotal gross value added of this branch is estimated at 139 913 million LEK or 17.6percent of total gross value added in 2006.65/236
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