Service Trade by Enterprise Characteristics (S-TEC)

Søren BurmanNordic meeting 2014,Tórshavn

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What is S-TEC – Short introduction

Bias by design – Implications of a survey

The brickwall of confidentiality

Quality considerations

What is next

Outline

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From ”what is traded” to ”who is trading” Traditional trade statistics depicts the trade of a nation S-TEC sheds light on the enterprises behind the trade

Based on the TEC statistic Link trade statistics with business statistics at the unit level Close cooperation with business statistics

S-TEC taskforce produced the first S-TEC template tables in 2013

What is S-TEC – Short introduction

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Additional dimensions in the S-TEC template tables Activity (SBR) Size (SBR) Ownership (FATS) … some information on trade intensity (SBR)

Linking between SBR, FATS and ITSS is relatively simple

What is S-TEC – Short introduction

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Example of S-TEC tables

A-B C D-E F G H K N

(01-09) (10-33) (35-39) (41-43) (45-47) (49-53) 58-60 61 62-63 (64-66) 69-71 72 73-75 (77-82)

0_49 229 850 26 952 865 887 1 564 435 86 853 75 732 103 403 284 537 206 755 18 932 65 407 228 508 149 003 1 835 4 006 559

50_249 26 464 293 017 78 005 12 049 276 741 79 176 214 055 105 787 148 886 28 371 125 202 138 877 41 784 0 2 760 651

250_M 1 358 735 5 243 656 813 147 248 411 685 224 320 346 313 84 263 0 69 288 104 961 0 10 311 442

UNK 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4 923 525 4 923 525

TOT 128 935 1 881 602 144 868 44 244 1 799 441 9 439 037 313 277 225 078 729 142 614 643 701 954 131 565 190 610 436 673 295 748 4 925 360 22 002 177

Table 1.1: Trade value by activity sector and enterprise size class

Nu

mb

er

of

em

plo

ye

es

Exports (Intra EU trade) OTH

MJ

TOT

NACE Rev. 2 (section or division)

UNK

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Example of S-TEC tables

A-B C D-E F G H K N

CODE ITEMS (01-09) (10-33) (35-39) (41-43) (45-47) (49-53) 58-60 61 62-63 (64-66) 69-71 72 73-75 (77-82)

205 Transport 5 231 57 165 488 9 264 375 505 6 713 110 12 484 1 853 520 310 38 053 38 395 1 118 121 10 736 125245 Communications services 94 1 345 30 658 4 072 67 723 163 558 1 670 251 800 670 8 260 295 268246 Postal and courier services 6 0 30 11 0 47 14 1 477247 Telecommunication services 88 163 529 1 659 251 753 656 6 783249 Construction services 0 8 933 0 11 95 402 910 59 016253 Insurance services 0 46 30 0 107 936 327 1 056 22 506 132 043260 Financial services 72 325 327 7 498 790 423 228 648 31 180 2 357 11 779 49 228 1 786 16 390 354 893262 Computer and information services 3 352 68 416 470 1 895 47 819 5 042 102 624 20 066 497 703 23 250 8 270 9 075 43 416 9 598 45 230 908 646

263

Computer services

65 688 4 859 20 022 461 049 8 452 1 862 6 055 40 204 802 671

264 Information services 2 728 183 45 36 654 14 798 7 213 3 543 5 027 105 974

266

Royalties and licence fees 82 531 114 425 2 770 1 961 147 009 34 179 151 30 144 19 408 731 822

268 Other business services 1 618 963 99 762 3 103 1 422 086 75 668 179 085 165 222 534 599 73 748 169 179 216 799 82 185 182 256 4 931 394269 Merchanting and other trade-related services 1 159 738 462 862 438 2 401 40 007 1 695 12 389 18 049 2 706 13 209 60 855 2 264 960272 Operational leasing 30 26 630 16 193 0 74 787 2 144 10 063274 Legal, accounting, management, consulting and public relations services 131 56 698 813 430 4 136 2 058 869 20 889 149 662 7 733 33 737 49 773 22 696 414 654278 Advertising, market research and public opinion polling 64 14 030 331 451 92 576 2 696 19 736 12 786 2 155 99 199 19 474279 Research and development services 70 2 278 87 94 639 28 732 2 462 3 639 4 411 2 768 245 163280 Architectural, engineering and other technical services 125 527 575 54 856 1 936 139 2 943 133 068 8 158 19 701 8 707 13 361 406 482281-285 Other miscellaneous business, professional and technical services

18 907 225 761 1 086 371 993 10 360 13 618 17 685 125 011 206 983 20 113 15 523 53 039 1 164 936

287 Personal, cultural and recreational services 795 1 026 7 7 878 70 250 198 97 72 824 9 231 198 258OTH (Branding, Quasi-transit adjustment, Travel, Government services n.i.e) 1 375 3 17 2 677 67 6 1 457 7 9 26 871 3 503 047 3 654 713

UNK 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0TOT 128 935 1 881 602 144 868 44 244 1 799 441 9 439 037 313 277 225 078 729 142 614 643 701 954 131 565 190 610 436 673 295 748 4 925 360 22 002 177

Table 2.1: Trade value by product and activity sector

Exports (Intra EU trade)

EB

OP

S 2

00

2

NACE Rev. 2 (section or division)

J M

OTH TOTUNK

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Example of S-TEC tables

A-B C D-E F G H K N(01-09) (10-33) (35-39) (41-43) (45-47) (49-53) 58-60 61 62-63 (64-66) 69-71 72 73-75 (77-82)

Domestic 113 780 1 493 679 33 945 1 136 361 7 090 990 133 238 17 939 157 140 514 145 609 446 115 494 78 447 369 527 12 210 911

Domestic indigenous 778 552 51 742 33 016 448 345 1 254 322 77 396 127 571 200 622 346 167 50 400 70 771 252 534 211 829 3 996 297

Domestic multinational 715 127 929 688 016 5 836 669 29 569 313 524 263 279 7 676 116 993 0 8 214 614

Foreign controlled MNE 15 155 387 923 10 299 663 080 2 348 047 180 039 207 139 572 002 100 498 92 508 16 071 112 163 67 146 4 867 741

UNK 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4 923 525 4 923 525

TOT 128 935 1 881 602 144 868 44 244 1 799 441 9 439 037 313 277 225 078 729 142 614 643 701 954 131 565 190 610 436 673 295 748 4 925 360 22 002 177

Table 3.1: Trade value by activity sector and type of ownership

Exports (Intra EU trade)

Ty

pe

of

ow

ne

rsh

ip

NACE Rev. 2 (section or division)

JOTH TOTUNK

M

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Bias by design – Implications of a survey

Short presentation of the sources for the ITSS

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ITS survey

Travel statistics

ITGS

Other sources

ITSS

Total population~40.000 enterprises

Survey~1.500

enterprises

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Trade reported by ~1500 enterprises covers roughly 80 pct. of total service trade Directly reported trade ~85 pct. (~68 pct. of the total ITSS) ~15 pct. is enumerated to the rest of the population, i.e. the

~38500 enterprises (40000 – 1500)

S-TEC can either be compiled only with the enterprises that report directly

…or by the entire population requiring an estimator in order to distribute the enumerated trade

Bias by design – Implications of a survey

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If directly reported trade is used, the “lightly” represented cells will be underestimated Bias towards well represented cells

If the enumerated data is distributed to the rest of the population by using a proxy variable (i.e. employees), variation will inherit that of the proxy variable Bias towards larger enterprises This bias will be smaller if a correlated proxy variable is

available

Bias by design – Implications of a survey

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What you cannot do when distributing with a non-correlated variable Count the number of enterprises engaged in ITS Classify ITS by the non-correlated variable (e.g. by size if

number of employees are the non-correlated variable used for the distribution of trade)

Classify ITS by other variables that are highly correlated with the variable used for the distribution of trade

What you can do Classify trade on a more aggregated level that is not highly

correlated with the variable used for the distribution of trade

Bias by design – Implications of a survey

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Identifying ”risky” cells is relatively easy

Ensuring that they are sufficiently concealed is the challenge Number of ways to suppress a single cell is V-1 * H-1

The difficulty of applying optimal secondary confidentiality increases with level of detail Automated process is often not up to the task

The brickwall of confidentiality

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Overview of the confidentiality issues for the template S-TEC tables

The brickwall of confidentiality

Table Dimensions Number of cells Avg. pct. of suppressed cells Impact from confidentiality 1 Size, Activity, Geography 270 25 Severe 2 Servicetype, Activity, Geography 1080 6 High 3 Ownership, Activity, Geography 324 36 Medium 4 Activity (increased detail), Geography 333 27 Severe 5 Servicetype, Size 100 12 Low 6 Servicetype, Ownership (decreased detail) 80 13 Low

Dimension Detail level Hereof totals and subtotals Size 5 1 Servicetype 20 4 Ownership 6 (4) 2 (1) Activity 18 (111) 1 (22) Geography 3 1

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One has to be carefull when making conclusions on biased data

A lot of resources are used on applying secondary confidentiality that could be used elsewhere.

Is a table hidden behind the brickwall of any use to the users? Will the missing data discourage users, even though new

information is available?

Quality considerations

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Eurostat is working on establishing a new S-TEC taskforce in 2015 with the following topics:

Methodology

Confidentiality

Framework for regular data collection

What is next