Data Sources and Methods used to compile balance of payments and IIP Statistics

Bedri ZymeriInternational Transactions Reporting System WorkshopAmman – JordanApril 7-9, 2014

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Outlines

Legal base

Balance of payments & IIP Register

Main data sources – by type

The data used as a sources – by components

Legal base Are the data collected on a voluntary or statutory basis?

This will affect response rates Statutory surveys will have higher response rates

Are procedures in place to prevent disclosure of individual reporters’ data? Access to individual data is restricted; Aggregation rules are used

Amount of detail published The office undertaking the survey may have to request

approval from the companies to publish detailed product-level information, for example where there are only one or two major exporters for certain goods/services;

Data sharing and coordination among data-producing agencies are adequate

Business Register - is a statistical register consisting of a list of enterprises (and / or other statistical units), with some basic information about each unit. Reference: “

Business Registers - Recommendation ◦ Manual”. , Eurostat, Luxembourg

2010.

Maintaining and developing a balance of payments and IIP enterprise register • The enterprise register form is used to record

information about members (enterprises) of the population.

• The information is subsequently used to conduct balance of payments and IIP surveys.

Balance of payments & IIP Register

Appendix 8. Model Survey Forms◦ Form 1—Exploratory Survey

- undertaken to identify ….enterprises receiving (or making) payments from (or to) abroad.

◦ Form 2—Balance of Payments and IIP Enterprise Register Form◦ - undertaken to identify … information about members

(enterprises) of the population, which – in turn – are used to compile balance of payments and IIP statistics.

◦ In part A - general information◦ In part B - information on the enterprise group is entered (for example,

Type of Unit, Sector, Publicly owned enterprise, Type of Enterprise - i.e. DIE or DI, Industry

◦ In part C - The size, The activities (goods, services, type of serv. etc.)◦ In part D - data are recorded on the source used to identify this unit◦ In part E - details of subsidiary companies and any DIE abroad◦ In part F - major shareholders are identified.

Balance of payments & IIP Register… continues

Conceptual Framework: Defining the type of data needed

CS = OS + T + VC + OCVA

T = CS – OS – OCVA.

Main Data Sources - by type

DATA SOURCES FOR COMPILING BALANCE OF PAYMENTS AND IIP STATISTICS

I. International transaction reporting System (ITRS)

II. International Merchandise Trade Statistics (IMTS)

III. Business Surveys or Enterprise Surveys (ES)

IV. Monetary and Financial Statistics (MFS)

V. Administrative Data Sources - Official Sources

VI. Other Sources Not Included Elsewhere & Estimates

I. Main data sources – by type: ITRS

An ITRS is a data collection framework for ESS which involves

reporting to the Central Bank, by: - banks, as a rule, and - enterprises, in many cases.

ITRS varies from country to country in terms of coverage and

complexity

When developing ITRS reporting forms, it is important to: Design reporting forms which are easy to complete Prepare Reporting Instructions and publish online Provide trainings for reporters and cooperate closely with them

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Main ITRS reporting Forms:Form 3-1. ITRS – Payments and Receipts;Form 3-2. ITRS – Imports and Exports Form 3-3. ITRS – Enterprises;Form 3-4. ITRS – Banks;Form 3-5. ITRS – Banks‘ Records of Transactions;Form 4— ITRS—EnterprisesForm 5—ITRS—Banks

ITRS Form 5A—BanksITRS Form 5B—Bank's Record of Transactions

I. Main data sources – by type: ITRS… continues

More about ITRS will be covered in other lectures

Prerequisites for the Conduct of Enterprise Surveys in

International Accounts:

Statistical legislation

Statistical Frame: Sources for BOP Register.

Clearly Defined Objectives

Collection Strategy: Census or Sample

Questionnaire Design (simple as possible)

II. Main data sources – type: Survey

Population benchmarks and weights used in the estimation process

are reviewed and updated periodically.

Survey questionnaires are constructed according to sound design

principles.

Survey instruments are designed for efficient data

capturing/processing.

Benchmark collections are conducted with sufficient frequency, to

ensure that the survey methodology is effective.

II. Main data sources – type: Survey

Main Survey Reporting Forms presented on draft of the BPM6 Compilation Guide:

Form 4— Trade in Goods and Trade Finance,

and Import of Repairs Services Form 5— Goods for Merchanting Form 6— International Trade in Services (not

covered by forms 7-12) Form 7— Manufacturing Services Form 8— Resident Transport Operators

II. Main data sources – type: Survey… continues

Form 9— Transactions with Nonresident

Transport Operators Form 10— International Travel Form 11— Construction Form 12— International Insurance Services Form 13— International Pension Services Form 14— Foreign Embassies and

International

Institutions

II. Main data sources – type: Survey… continues

Form 15— Private Aid and Charitable

Organizations Form 17— Financial Claims on and Liabilities

to

Nonresidents Form 18— Foreign Direct Investment Form 19— International Securities Form 20— Holdings of and Transactions in

Financial Derivatives Contracts with Nonresidents

II. Main data sources – type: Survey… continues

Form 21—Travel: Returning Residents Form 22—Travel: Departing

Nonresidents Form 23—International Transactions and

Positions of Households

II. Main data sources – type: Survey… continues

For more info, visit: https://www.imf.org/external/pubs/ft/bop/2007/bop6comp.htm

Sectoral SurveyAnalytical presentation with

key aggregates:

broad money, net foreign assets, net claims on central

government,…

Sectoral Balance Sheet

Assets and Liabilities as in SNA

+ Details by creditor/debtor sector and currency

Source Data

Sectoral Charts of Accounts (central bank, other banks,

finance comp., …) + Reporting Requirements

III. Main data sources –type: Monetary data

Summary Lines from SRF for Other Depository

Corporations:

III. Main data sources –type: Monetary data … continues

Source data available from administrative records to compile

BOP and IIP need to be adequate;

Periodic meetings needs to be held with government and

financial institutions, as well as with the business community to

identify new needs;

International standards, guidelines, and best practices need to be

monitored for changes that need to be taken into account in the

balance of payments and IIP compilation system.

IV. Main data sources – type: Administrative data

Data that supplement other sources:

Financial statements published by reporters

Partner countries Embassies, consulates, military installations, aid

missions, information agencies, and other government institutions located abroad

Estimates

V. Main data sources – type: Other Sources Not Included Elsewhere

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The data used as a sources – by components

direct investment; portfolio investment; financial derivatives; other investment; and reserve assets.

goods; services; primary income;

and secondary

income. capital account

Standard components of balance of payments and IIP statements :

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Goods component: The data used as a sources

The goods component of the balance of payments current account covers (with a few exceptions) moveable goods for which changes of ownership (between residents and nonresidents) occur.

Goods standard components as presented in Appendix 9 of BPM6:

A. Balance of PaymentsItems Credits Debits

Goods (BPM6 Page 301)Balance on trade in goods (+ surplus; – deficit)

General merchandise on a BOP basis Of which: Re-exports n.a. Net exports of goods under merchanting n.a.

Goods acquired under merchanting (negative credits) n.a. Goods sold under merchanting n.a. Nonmonetary gold

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Goods component: The data used as a sources

In practice, the data used as source for General merchandise are:

Customs (primary data source) ITRS Administrative records (including data from TAX

System) Survey of traders (businesses) Combinations

Adjustments may be needed to some data for: Coverage, timing, valuation and classification

Form 6 — Trade in Goods and Trade Finance, and Import of Repairs Services

Part A & B: collect data on exports and imports Part C & D: collect details of processing of goods Part E & F: covers repairs to goods Part G : is concerned with merchanting transactions Part H & I: measure significant differences between

date of sale and date of shipment. Part J & K : are concerned with the financing of trade.

… continues

Goods component: The data used as a sources

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For services component the Balance of Payments Unit usually organizes a mixture of data sources.

An ITRS can be used for the compilation of trade in services statistics and is likely to have a good coverage across the full range of services

Surveys The system is made up of two main subsystems:

a full survey of the major enterprises; a set of specific surveys for the other

enterprises.

Services – main components based on BPM6

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Services – main components based on BPM6

A. Balance of PaymentsItems

Services (P72/P82)Balance on trade in services (+ surplus; – deficit)

1 Manufacturing services on physical inputs owned by others 2 Maintenance and repair services n.i.e. 3 Transport

4 TravelGoods acquired under merchanting (negative credits) 5 ConstructionGoods sold under merchanting 6 Insurance and pension services

7 Financial services8 Charges for the use of intellectual property n.i.e.9 Telecommunications, computer, and information services

10 Other business services11 Personal, cultural, and recreational services12 Government goods and services n.i.e.1

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Services – Template Forms from Compilation Guide

Forms Number and Title

Scope and Purpose Other Comments

6. International Trade in Services

The form collects data on services not covered by forms 7-12 for compilation of various services items.

Separate forms could be created to collect information on specific aspects of services (for example, provision of financial services).

7. Manufacturing Services

This form contains a sample questionnaire on manufacturing services on physical inputs owned by others.

8. Resident Transport Operators

The form collects data on resident transport operator earnings and expenses for compilation of transportation and certain goods items.

The form could be tailored for different modes of transport. Several more specialized forms could be created from the model form.

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Forms Number and Title

Scope and Purpose Other Comments

8. Resident Transport Operators

The form collects data on resident transport operator earnings and expenses for compilation of transportation and certain goods items.

The form could be tailored for different modes of transport. Several more specialized forms could be created from the model form.

9. Transactions with Non-Resident Transport Operators

The form collects, from residents, data on non-resident transport operators‘ earnings and expenses for compilation of transportation and certain goods items.

The form could be tailored for different modes of transport. Several more specialized forms could be created from the model form.

10. International Travel

The form collects data on the means used to pay for travel and related services for compilation of the travel item.

Several specialized forms could be created from this form.

Services – Template Forms from Compilation Guide

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Forms Number and Title

Scope and Purpose Other Comments

11. Construction This form collects information on construction abroad, construction in the compiling economy, as well as data on both short-term and long-term construction projects.

12. International Insurance Services

The form collects information on the insurance and re-insurance activities of resident enterprises. The data are used in the compilation of services, current and capital transfers and the IIP.

The form illustrates methods for collecting various data specifically associated with the insurance industry.

13. International Pension Services

The form collects information on the pension activities of resident pension funds. The data are used in the compilation of services, current transfers, and the IIP.

The form illustrates methods for collecting various data specifically associated with the operations of pension funds.

Services – Template Forms from Compilation Guide

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Forms Number and Title

Scope and Purpose Other Comments

14. Foreign Embassies and International Institutions

The form collects data on wages and salaries paid to local workers, other embassy expenditures, foreign aid, and official finance. These data are used to compile compensation of employee, government services, current transfer, financial account, IIP, and investment income items.

While the reporters to this form, who will be non-residents, cannot be compelled to complete it, a number of countries have successfully collected information by using forms similar to the model form.

15. Private Aid and Charitable Organizations

The form collects data on the income, compensation of employees and current and capital transfers of private aid and other charitable organizations.

Primary Income – Template Forms from Compilation Guide

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Forms Number and Title

Scope and Purpose Other Comments

15. Private Aid and Charitable Organizations

The form collects data on the income, compensation of employees and current and capital transfers of private aid and other charitable organizations.

16. Current Transfers Grants and Technical Assistance

This form collects information on current transfers, grants and technical assistance. Part A of the form seeks information on transfers in cash and in kind received by the government and the private sector, including nongovernment organizations (NGO). Part B of the form pertains to technical assistance of project work/staffed missions received by the economy.

The information can be used for the compilation of current transfers in the secondary income account and capital transfers in the capital account.

Secondary Income – Template Forms from Compilation Guide

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Forms Number and Title

Scope and Purpose Other Comments

17. Financial Claims and Liabilities to Nonresidents

The form collects data on financial flows, stock positions, reconciliation items, income, certain financial services, and withholding taxes. The data are used to compile financial account, IIP, investment income, financial services and current transfer items.

In practice, several forms may be created from this form, or more simplified versions of the form could be developed.

18. Foreign Direct Investment

The form collects data specifically on foreign direct investment items of form 16.

This form is a narrower version of form 17, collecting data specifically on foreign

International Securities

This form collects data on financial transactions, stock positions, income, financial services, and withholding taxes associated with international securities from financial intermediaries.

The form can be used in either an enterprise survey or an ITRS.

Financial Account – Template Forms from Compilation Guide

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Reporting agents

Central Bank General government Banks Financial sector other than Banks Non-financial sector NSO

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Availability of data and Timelines

Availability◦ Goods data: usually available on a monthly basis

◦ Surveys: usually in annual or quarterly basis

◦ Monetary and financial data: usually are available in monthly bases

Timelines◦ Monthly reports 15 working days after the month◦ Quarterly reports one month after the quarter

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Compilation Methods

Systematic development of financial statistics◦ Available data varies among countries◦ Limited data sources◦ Flows only or Stocks only

Estimation techniques of missing data

Editing, residual calculations, and discrepancies

Net errors and omissions (statistical discrepancy)

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THANK YOU!

QUESTIONS!