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7/22/2014 Sub-Regional Training Workshop on Changes in SNA 2008 affecting GDP Compilation THE NON-OBSERVED NON OBSERVED ECONOMY (NOE): Current Practice in Mongolia M Oyunjargal M. O j l Macro economic statistics department, NSO 30 JUNE-4 JULY 2014, ASTANA, KAZAKHSTAN I. Background II. The framework and production boundary III. Result of NOE IV. Future activities V. Problem 2 1 7/22/2014 I. Background IS estimation in Mongolia: • Informal I f l sector t survey, 2000, 2000 /by /b Bill Bikales/, Bik l / USAID; USAID • Labor force survey, 2002-2003, ADB; • ISS on transportation and trade sector, 2004, NSO; • Enterprises’ Census, 2005, NSO; • Survey S on HUEMs, HUEM 2007-2008 2007 2008 , the th UNESCAP. UNESCAP • Complex survey and estimations for NOE, 2012 3 I. Background Methodologies applied: • Handbook for Measurement of the Non observed Economy, 2002, ILO, IMF, UNSD, WB • SNA2008 • Handbook for Non observed economy in National Accounts, 2008 (includes ( the UN and EU countries practices) 4 2 7/22/2014 II. The framework and production boundary The NOE refers to all activities that may not be covered in NA. Classification of NOE Framework 1. Underground production p N6- Producers deliberately misreporting p g 2. Illegal production (drugs, prostitution ) N2 -Producers deliberately not registering – illegal- 3. Informal sector production 4. Household production for own final use 5. Other missed productive activities Data source Administrative data Administrative data, social statistics survey N1 - Producers deliberately not registering – underground HUEM, Artisanal (small scale miners’) survey N5 - Registered entrepreneurs not surveyed HUEM survey N3 - Producers not required to register N4 - Legal units not surveyed HUEM survey ES, 2011 N7 - Other statistical deficiencies 5 III. Results of NOE • By survey, in 2010, 13.2 percent of GDP comes from NOE. • In GDP by the production approach: — Result was distributed to the related sectors • In GDP by the expenditure approach: — Integrated into HH expenditure of final consumption — Part of HHs own final use was integrated as GCF (construction) 6 3 7/22/2014 IV. Future activities • The NUEMs will be conducted every 5 years. The VA of informal sector of the intermediate years can be calculated based on the previous surveys surveys’ results and number of units identified by LFS; (N1, N3, N5) • Illegal and underground production will be estimated every year based on administrative data (N2, N6) • Estimation will made if will found differences between administrative d i i t ti and d NSO data d t (N4) 7 V. Problems • HUEM survey result for quarterly allocation is not always representative. (LFS doesn’t focused to select HUEM) 8 4 7/22/2014 Thank you The Government Building III Baga Toiruu-44 Ulaanbaatar-20а, Мongolia Tel: (976)-11-329125 Fax: (976)-11-324518 E-mail: E mail: [email protected] www.nso.mn www.1212.mn 5