Delineation ofStatistical Units

Ad Willeboordse

Why are SU so important?

• SUSU are the building blocksbuilding blocks of Industries

• Industries Industries are the most important aggregates in

business statistics

Why are BR so important? • They are the producersproducers of SU

eu-regulation on statistical unitseu-regulation on statistical units

““......only if the member states use common only if the member states use common

definitions of statistical units will it be definitions of statistical units will it be

possible to provide integrated statistical possible to provide integrated statistical

information with the reliability, speed, information with the reliability, speed,

flexibility and detail required for the flexibility and detail required for the

management of the internal market”management of the internal market”

WHY IS HARMONIZATION OF SU SO IMPORTANT?

WHICH TYPE OF SU APPLIES?

– Legal units? – Enterprise Groups?– Institutional units? – Enterprises? – Local units? – KAU’s? – Local KAU’s? – Units of Homogeneous Production?– Local UHP’s?

An Industry is a set of:An Industry is a set of:

with the same (principal) activitywith the same (principal) activity

Two approaches possible

• By exploring and comparing definitions: – difficult

– confusing

– boring

• by finding out in practicepractice: – more easy

– more clear

– excitingexciting

the furniture showthe furniture show

Turnover and Employment in the Slovenian Furniture Industry

LjubljanaLjubljana

Employment and turnover in Furniture Ind.

Yes: a good (ESA)

No: no market transactions

No: households (not ind.) turnover in FI? turnover in FI? • production?production?• Business?Business?

Empl. in FI? Empl. in FI?

• production?production?

• Business?Business?

Yes: a good (ESA)

criteria:• market transactions • continuity• threshold

Provided 3 criteria: yesyes

•Registration? Registration?

Conclusions

• Production for own use:own use: – production by Household sector– never a business; never a SU– no part of any Industry

• Production for marketmarket:– a business, part of an industry, provided:

• continuity;

• exceeds threshold

KRANJKRANJ

A Real BusinessA Real Business

Contribution to employment in the FI? Contribution to employment in the FI?

Ancillary Activities are part of FIAncillary Activities are part of FI

Transport Industry? Transport Industry?

no transactions on marketno transactions on marketno transactions on marketno transactions on market

Ancillary Activities are part of FIAncillary Activities are part of FI

Vertically integrated ActivitiesVertically integrated Activities are part of FI are part of FI

no transactions on marketno transactions on market

Saw Milling Industry? Saw Milling Industry?

Toy Industry? Toy Industry?

Horizontally integrated Activities:Horizontally integrated Activities:• autonomously managed?autonomously managed?• independent production process?independent production process?• [Data available?] [Data available?]

transactions on market !transactions on market !

Bicycle Industry? Bicycle Industry?

Horizontally integrated Activities:Horizontally integrated Activities:• autonomously managed?autonomously managed?• independent production process?independent production process?• [Data available?] [Data available?]

Conclusions

• No market transactions: no separate industry

• yes market transactions: – separate industry, provided:

• autonomy, which presupposes:

• availability of meaningfulmeaningful data

The Legal dimensionThe Legal dimension

LULU

LULU(holding)(holding)

LULULULU

LULU

LULU

Impact on employment in furniture industry???Impact on employment in furniture industry???

legal structure is not relevant for industry conceptlegal structure is not relevant for industry concept

Kranj

LjubljanaPostojna

The Regional dimensionThe Regional dimension

Effect on employment in Lj.:Effect on employment in Lj.:which industry?which industry?

Effect on employment in FI Effect on employment in FI in Slovenia? in Slovenia?

““physical” structure is not relevant physical” structure is not relevant for industry conceptfor industry concept