CHAPTER 3 – Session 9

United Nations Statistics Division/DESA

RevisionRevisionof the Index of Industrialof the Index of Industrial

Production (IIP) Production (IIP) publicationpublication

by the UNSDby the UNSD

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Chapter 3Chapter 3

• Summary of chapter:Summary of chapter:• This chapter presents:This chapter presents:

• The various The various unitsunits and and classificationsclassifications in use in use internationally and recommends the most internationally and recommends the most appropriate type of unit and classification in the appropriate type of unit and classification in the compilation of an IIP; andcompilation of an IIP; and

• The essential role of the business register is also The essential role of the business register is also presented in the context of statistical surveys and presented in the context of statistical surveys and the IIP.the IIP.

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Chapter 3 – Recommendations and Chapter 3 – Recommendations and FeedbackFeedback

• General support for the structure and content of General support for the structure and content of chapter 3.chapter 3.

• Recommendation:Recommendation: The recommended statistical The recommended statistical unit to compile the IIP is the establishment.unit to compile the IIP is the establishment.

• FEEDBACK suggests this recommendation is FEEDBACK suggests this recommendation is supported.supported.

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Chapter 3 – Recommendations and Chapter 3 – Recommendations and FeedbackFeedback

• Recommendation:Recommendation: The international reference classification The international reference classification for economic activities, ISIC Rev.4, is the most suitable for economic activities, ISIC Rev.4, is the most suitable classification of industries. The Central Product classification of industries. The Central Product Classification Ver.2 (or its national version developed by Classification Ver.2 (or its national version developed by countries and fully compatible with the CPC) is to be used countries and fully compatible with the CPC) is to be used to assign products to product groups.to assign products to product groups.

• FEEDBACK - FEEDBACK - How is the outsourcing of industrial production reflected in the definition, scope and calculation of the IIP? In ISIC Rev.4, a manufacturing unit can produce goods or manufacturing services. Therefore the product groups to be considered in the IIP calculation cover also manufacturing services (CPC Division 88). If only output value is used for the product groups, a form of double-counting may occur. [Ralf to provide an example]

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Chapter 3 – Recommendations and Chapter 3 – Recommendations and FeedbackFeedback

• Recommendation:Recommendation: It is recommended that where the IIP is compiled It is recommended that where the IIP is compiled from statistical surveys that:from statistical surveys that:• a business register provides the basis from which a sampling frame is a business register provides the basis from which a sampling frame is

identified;identified;• a stratified sample survey be used;a stratified sample survey be used;• the business register be maintained to ensure it remains as representative the business register be maintained to ensure it remains as representative

as possible and contains current information on its constituents;as possible and contains current information on its constituents;• countries with a large number of small establishments establish a specific countries with a large number of small establishments establish a specific

size cut-off and include in the business register only those establishments size cut-off and include in the business register only those establishments over a specific size; andover a specific size; and

• the sample selection is updated each year to coincide with the update of the sample selection is updated each year to coincide with the update of index weights.index weights.

• FEEDBACK FEEDBACK • suggests this recommendation is supported.suggests this recommendation is supported.

• Should the recommendation include “establish a size cut-off and include in the Should the recommendation include “establish a size cut-off and include in the business register only those establishments over a specific size”?business register only those establishments over a specific size”?

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Chapter 3 – Recommendations and Chapter 3 – Recommendations and FeedbackFeedback

• Recommendation:Recommendation: It is recommended It is recommended countries examine opportunities to utilize countries examine opportunities to utilize administrative sources, especially for the administrative sources, especially for the purposes of developing and maintaining a purposes of developing and maintaining a sampling frame as well as the data source sampling frame as well as the data source to reduce response burden.to reduce response burden.

• Feedback – this description on administrative Feedback – this description on administrative data sources needs to be expanded (this is data sources needs to be expanded (this is also relevant to chapter 4 – data sources).also relevant to chapter 4 – data sources).

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Chapter 3 - DiscussionChapter 3 - Discussion

• Are there any comments on the following Are there any comments on the following chapter 3 topics:chapter 3 topics:• Out-sourcing in the context of the IIP;Out-sourcing in the context of the IIP;• Should the recommendation include “establish Should the recommendation include “establish

a size cut-off and include in the business a size cut-off and include in the business register only those establishments over a register only those establishments over a specific size”?specific size”?

• the description on administrative data sources the description on administrative data sources needs to be expanded.needs to be expanded.