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Expert group on Supply
and Use tables
Mauritius, June ‘14
The non-observed economy
The South African experience
THE SOUTH AFRICA I KNOW, THE HOME I UNDERSTAND
Non-observed economy
Underground production;
Not explicitly estimated; Informal sector?
Illegal production;
Informal sector production;
Household production for own final use; and
Production missed due to deficiencies in data collection
programme.
THE SOUTH AFRICA I KNOW, THE HOME I UNDERSTAND
Illegal production
Administrative
data
• South African Police Services
• South African Revenue Services
• Research papers and NGO
Lower bound
estimates
• Value added/Turnover ratio
• Value added per unit ratio
• Legal production margins
South African
scope
•
•
•
•
•
THE SOUTH AFRICA I KNOW, THE HOME I UNDERSTAND
Agriculture: Canabis, abalone
Mining: Gold, platinum, diamonds
Manufacturing: Alcohol, piracy, pharmaceuticals
Trade: Tobacco, clothing
Personal services: Prostitution
Informal sector production
Household
surveys
Value added
South African
scope
THE SOUTH AFRICA I KNOW, THE HOME I UNDERSTAND
• Non-tax registered
• Quarterly Labour Force
• Survey of employer and self employed
• P: Rand per capita per industry
• Q: Number employed
• All except Electricity supply and Government
Household production for own final use
Goods
Services
THE SOUTH AFRICA I KNOW, THE HOME I UNDERSTAND
• Subsistence agriculture
• Vegetable gardens etc.
• Fetching water
• Construction
• Owner occupied dwellings
Production missed due to collection deficiency
Sampling
frames
• Enterprise: Taxation based
• Household: Census listing
Sample surveys
• Timelines
• Cost
• Frequency
Relative
sampling errors
• Enterrpise RSE 1 - 5%
THE SOUTH AFRICA I KNOW, THE HOME I UNDERSTAND
Results from 2005 benchmark
Agric
Mine
Man
Elec
Const
Trade
Trans
Bus
Serv
Pers
serv
Formal
94,4
99,8
97,1
98,3
78,3
78,8
95,4
75,3
90,1
NOE
5,6
0,2
2,9
1,7
21,7
21,2
4,6
24,7
9,8
Non Observed
Total Economy
Other
2%
NOE
12%
Formal
88%
Own
final use
51%
Very little variance over time
THE SOUTH AFRICA I KNOW, THE HOME I UNDERSTAND
Informal
47%
END
Joe de Beer
DDG: Economic Statistics
+27 12 310 8024
[email protected]
THE SOUTH AFRICA I KNOW, THE HOME I UNDERSTAND