ISIC Revision 4: Top-top and
Intermediate Aggregation Structures
(for SNA data reporting by activity)
OECD proposals
William Cave
OECD Statistics Directorate
OECD WP National Accounts
October 2005
1
What is ISIC?
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International Standard Industrial Classification of All
Economic Activities (ISIC)
The official activity classification of SNA
To classify economic entities (units) according to
activity they carry out
Original ISIC 1948
Rev 1 1958, Rev 2 1968, Rev 3 1989
Minor Revision 3.1 2002,
Major Revision 4 planned for 2007
OECD WP National Accounts
October 2005
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Design principles & priorities for ISIC rev 4
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Improve international comparability
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Relevance
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convergence of regional classifications
E.g. NAICS,NACE,JSIC,CSIC,ANZSIC etc
engage more countries & regions in ISIC design
target for international comparability at least 2 digit level
Information sector, internet , telecoms
OECD ICT definition
environmental services
new technologies
growing business service sector
health services
tourism
agriculture
Continuity – long time series
Level of detail for an international classification?
OECD WP National Accounts
October 2005
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ISIC 3 and ISIC 4 top-level
ISIC 3
Top-level sections
17
Divisions
60
SNA requests top-top level
OECD WP National Accounts
October 2005
ISIC 4
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88
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ISIC rev 4: A Top-top Structure?
What are SNA needs?
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SNA AEG, OECD and Eurostat national accountants
have agreed need for top-top structure to ISIC rev 4
of about 10 categories
OECD national accountants proposed that
intermediate aggregation of 30-40 categories useful
for international comparison within OECD. SNA AEG
in Dec 2004 were undecided.
Currently OECD and Eurostat use A6/A17/A31/A60
aggregations of ISIC rev 3 in national accounts
questionnaires
OECD WP National Accounts
October 2005
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Proposed set of ISIC 4
SNA data aggregations?
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A*10/11 top-top
A*21 = ISIC rev 4 Sections
A*38 = ISIC rev 4 Sections + 17 sub-sections
(intermediate)
A*88 = ISIC two digit divisions
OECD WP National Accounts
October 2005
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OECD exercise
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Autumn 2004 set aim to agree top-top and intermediate ISIC 4
aggregations for reporting national accounts data by activity
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Initial proposals from Eurostat, UNSD and France
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OECD analysts raised issues:
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international comparability, relevance, and continuity for long time
series analysis;
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the needs of input-output, policy interests, productivity analysis,
separately identifying activities that follow different tracks in economic
cycle
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OECD SNA Industry EDG established to encourage participation
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Proposals developed in consultation with Eurostat and UNSD
OECD WP National Accounts
October 2005
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Process
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First OECD proposal circulated February 2005
Revised proposal in light of comments 24 May
– Set out specific questions on most contentious issues
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Sent to all OECD member national accountants,
EDG, classifications experts, Eurostat, UNSD
Reviewed by UNSD Expert Group on Classifications
June 2005
Comments received from 15 countries, Eurostat and
ECB
OECD WP National Accounts
October 2005
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Constraints
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Preference for following ISIC structure
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ISIC 4 draft was changed in March and August 2005
– now finalised
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Some ISIC structural and ordering changes on real
estate and public administration made for top-top
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Take into account current ISIC 3 aggregations
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Consider Eurostat A65 draft & US BEA GDP by
industry (~65)
OECD WP National Accounts
October 2005
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OECD proposal for Top-top aggregation
ISIC rev 4 sections
Description
1
A
Agriculture, forestry and fishing
2
B,C,D and E
Manufacturing and other industry
2a
C
Of which: Manufacturing
3
F
Construction
4
G, H and I
Trade, transport & hotels etc
5
J
Information & communication
6
K
Financial & insurance
7
L
Real estate activities
8
M and N
Business services
9
O, P and Q
Public admin; education, human
health and social work
10
R, S, T and U
Other services
OECD WP National Accounts
October 2005
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Illustrative v.a. weights for selected countries
Description
France
US
Australia
2.5
1.0
3.5
19.5
16.0
19.5
16.5
12.5
11.0
5.0
4.5
6.5
Trade, transport & hotels etc
17.5
18.5
20.0
Information & communication
5.0
5.5
5.0
Financial & insurance
5.0
8.0
7.0
Real estate activities
12.0
11.5
10.0
Business services
11.5
11.0
11.0
Public admin; education, human
health and social work
20.0
20.5
15.0
2.0
3.5
2.5
Agriculture, forestry and fishing
Manufacturing and other industry
Of which: Manufacturing
Construction
Other services
OECD WP National Accounts
October 2005
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Responses on top-top
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i) Group OPQ and RSTU or ii) O and PQRSTU
– i) 9 ii) 7 very close but chose option i)
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Support A10/11?
– Yes 14, No 2
– Two suggested A12 with mining
– One favoured A10 combine L with MN
– One favoured A6 if to be used for quarterly reporting
OECD WP National Accounts
October 2005
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Proposal for intermediate aggregation A*38
1
A
Agriculture, forestry and fishing
2
B
Mining and quarrying
3
CA
Food products, beverages and tobacco
4
CB
Textiles, wearing apparel and leather products
5
CC
Wood and paper products, and printing
6
CD
Coke, and refined petroleum products
7
CE
Chemicals and chemical products
8
CF
Pharmaceuticals, medicinal chemical & botanical products
9
CG
Rubber and plastics products, & other non-metallic
mineral products
10
CH
Manufacture of basic metals and metal products
11
CI
Manufacture of computer, electronic & optical products
12
CJ
Manufacture of electrical equipment
13
CK
Manufacture of machinery and equipment n.e.c.
OECD WP National Accounts
October 2005
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Proposal for intermediate aggregation 2
14
CL
Transport equipment
15
CM
Other manufacturing and repair
16
D
Electricity, gas, steam and air-conditioning supply
17
E
Water, sewage, waste management and remediation
18
F
Construction
19
G
Wholesale and retail trades
20
H
Transportation and storage
21
I
Accommodation and food service activities
22
JA
Publishing, audiovisual and broadcasting activities
23
JB
Telecommunications
24
JC
IT and other information services
25
K
Financial and insurance activities
26
L
Real estate activities
OECD WP National Accounts
October 2005
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Proposal for intermediate aggregation 3
27
MA
Legal, accounting, management, architecture, engineering, technical
testing etc
28
MB
Scientific research and development
29
MC
Other professional, scientific and technical activities
30
N
Administrative and support service activities
31
O
Public administration and defence
32
P
Education
33
QA
Human health services
34
QB
Residential care and social work activities
35
R
Arts, entertainment and recreation
36
S
Other services
37
T*
Activities of households as employers of domestic personnel
and undifferentiated production of households for own use
38
U*
Extra-territorial organizations and bodies
OECD WP National Accounts
October 2005
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Issues for intermediate aggregation
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Comparable SNA data reporting for Europe, N
America and Asia-pacific and preferably wider
Follow ISIC order and hierarchy
Consider analytical relevance and continuity
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ICT, R&D, Energy, Distributive trade
Keep approximate A31 level of detail for
manufacturing – for continuity and robustness of data
More service activities
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Eurostat and US A65 levels
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OECD WP National Accounts
October 2005
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Responses on intermediate proposal
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Not to break out mining of energy materials
– Yes 9, No 5
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Combine Section G Trade divisions into one for international
comparability
– Yes 11, No 3
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Agree split on human health and social work
– Yes 12, No 3
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Break out R&D
– Yes 13, No 3
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Break out manufacturing at about same level as A31
– Yes 10, No 1
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Keep the group manufacture of transport equipment as in A31
– Yes 9, No 4
OECD WP National Accounts
October 2005
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Questions and Proposed Next Steps
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Can these proposed aggregations be accepted for SNA data
reporting? In particular:
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Do you agree the A*10/11 proposals are suitable for an ISIC
top-top aggregation for SNA data reporting
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Do you agree the proposed intermediate A*38 is suitable for
SNA data reporting?
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Any further comments are invited
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Subject to delegates views a final OECD paper would be
submitted to ISWGNA in November for consideration by the
SNA AEG January 2006
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P.S.: Should a standard grouping for service activities be
recommended or not?
OECD WP National Accounts
October 2005
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Thank you for your attention
OECD WP National Accounts
October 2005
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