Instituto Nacional de Estadística, Geografía e Informática (INEGI), Mexico The Integrated Approach to Economic Statistics “ The Mexican Approach” Friends

Instituto Nacional de Estadística, Geografía e Informática

(INEGI), Mexico

The Integrated Approach to Economic Statistics

“ The Mexican Approach”

Friends of the Chair Group on Integrated Economic

June 2007

• Introduction

• The General Bureau of National Accounts

• Basic Economic Data

• Economic Census

• An integrated system of surveys

• Benefits

• Other economic surveys

• National Construction Industry Survey

• Monthly Survey of Commercial Establishments

• Monthly Industrial Survey

• Monthly Services and Transportation Surveys 2006

• Data dissemination

National Economic Surveys (NES)

Territory of 2 millions

square kilometers.

Introduction

Mexico’s size

Population of 103

millions inhabitants.

3 millions establishments

counted by economic

censuses.

GDP: commerce and

services 70%, industry

26% and primary

sector 4%.

32 state offices: collection

and data entry to the system.

Introduction

INEGI’s structure

10 regional offices:

coordination, supervision

and link INEGI to informants

as well as to the state and

municipality authorities of the

region.

Central office in the city of

Aguascalientes: gives norms

and methodological proce-

dures; disseminates the

information.

The General Bureau of National Accounts

Background

National Accounts provide a set of Statistical data for the purpose of economic analysis, decision taking and policy making. It is widely used as indicator of economic activity and measures the performance of the economy and other important parameters such as GDP/GNP, Investment, Savings, Inflation etc.

The Mexican System of National Accounts

The Quinquennial exercises like construction of Input Output Table and the Annual Institutional Sector Accounts shows the inter-industry transactions and flows of transactions among the institutions such as general government, household, NPIs, Financial and Non-financial Sectors. Some other functions are the compilation of Regional accounts and the production of economic indicators.

Basic Economic Data

An example of this, is the Mexican Bulletin of Statistical Information, publication that offers recent and accurate information on the most relevant aspects of the Mexican economy.

The topics covered in the publication are:

• Economic Activity• Employment and Wages• Prices • External Sector• Money and Banking• Financial Markets• Public Finance• Communications and Transportation• International Indicators

The information contained in this bulletin has been compiled from various national and international sources.

Basic Economic Data

Short-term Economic Indicators

Aggregate Economic Information Seasonally Adjusted Indicators Employment and Unemployment Industry Commerce Communications and Transportation External Sector Competitiveness Indicators in the Manufacturing Industry

Medium-term Economic Indicators

Economic Census Surveys

Economic Census

Background

The Economic Census profiles the Mexican economy every 5 years, from the national to the local level. The economic statistics that most people are familiar with – like retail sales, Gross Domestic Product, and many others – have their origins in the data that are collected in the 5-year Economic Census. It began to be developed in Mexico since 1930, year in which was performed the first Industrial Census. The last Economic Census was done in 2004 and in 2009 will start the next.

Purpose

The Economic Census is indispensable to understanding Mexico´s economy. It insures the accuracy of the statistics we rely on for sound economic policy and for successful business planning.

Manufacturing Survey (1963).

Survey on Building Firms (1983).

Survey on Commercial Establishments (1983).

Monthly Survey on Management Opinion (manufacturing)

(2007).

Survey on Services (non financial private services and the

transporting sector) (2007).

An Integrated System of Surveys

Economic surveys’ background

Annual and Monthly Continuous Surveys in Establishments

Different conceptual frames and questionnaires among surveys.

Some overlaps in information requests between the economic

censuses, the monthly and annual surveys.

Teams of work were duplicated among surveys.

Irregular load assignment among interviewers.


Inefficient use of time, caused by long distances between establishments or firms developing in the same economic sector.

People for collecting and other to entry data into computers.

Difficult to obtain productivity indicators.

If the firm was involved in different sectors (manufacturing, commerce and services), several interviews.


Provide useful, high-quality and timely primary statistics, through continuous surveys, integrated to economic censuses and administrative registers in order to:

• Satisfy national and international needs of statistical information.

• Satisfy national accounts requirements.

General objective of National Economic Surveys (NES)

An integrated surveys’ system

A multidisciplinary group elaborated the scheme of all surveys.

Integrate NES to economic censuses.

Common methodological criteria among surveys.

Consideration on historical comparisons.

Provide useful information to national accounts compiling.

Permanent NES modernization.

Observe international standards for the collection and dissemination

of statistics.

Specific objectives of National Economic Surveys (NES)


The major changes took place in:

Conceptual and sample frame

Data collecting and analysis


Assure conceptual and nomenclature homologation.

Apply standardized concepts in surveys according to SNA 1993.

Homogeneous measurement of production among activities in

manufacturing (transformation and in-ward processing).

The North American Industrial Classification System (NAICS) in

surveys and economic censuses.

Conceptual frame

Reengineering towards an integrated surveys system

One area in charge of conceptual design for surveys, economic

censuses and administrative registers.

• Common variables: occupied personnel, wages and salaries,

income and expenditure, worked days and fixed capital.

• Specific variables: For example, volume and value of products in

manufacturing, transported passengers in the transporting sector,

works carried out in construction, and clients and suppliers in

commerce.


Conceptual frame

Questionnaires with a common part and other with specific

variables.


Conceptual frame

No repetitive information requirements among monthly surveys,

annual surveys and economic censuses.

A unique instructive for the questionnaire filling.

Design of a unique automatic validation criteria for all surveys.

Interviewers’ training: real time and long distance courses.

Preparation of instruments and documents that facilitated the

performance of all the parties involved.


Sample Frame

Substitution of the old frame for that provided by 2003 economic censuses.

Conceptual and sample frame

Data collecting and analysis


It was created the figure of “the universal interviewer”.

In the case of firms involved in several sectors, just one interviewer

collects the information in a single visit.

Interviewers also entry the data into the computers.

Generation of reports on the performance of all operative personnel.

Homologation of wages among interviewers.

Data Collecting


One team supervises coverage advances.

Implementation of internet collecting: mainly in large firms.

Data collecting


Personnel were reallocated setting up a group of experts in sectors

dedicated to the treatment and analysis of data.

Data treatment and analysis

Greater control on interviewer performance.

Optimization of resources and time.

A knowledge increase of interviewers on the sectors involved.

People in the central office got specialized in conceptual design,

operative strategy or treatment and analysis.

It was a reduction of informants’ load.

An incorporation of new technologies in processes.

Benefits

Immediate Benefits

National Construction Industry Survey*

* Encuesta Nacional de la Industria de la Construcción. (ENIC)

Background

The survey, conducted in the form of a questionnaire, is composed of four sections: valuation history, company profile, financial statement data and valuation data. Information gathered from the questionnaires will remain confidential.

Data is obtained through the affiliated companies in the Mexican Chamber of the Construction Industry (CMIC). The purpose of the surveys is to obtain recent, reliable and accurate information in the Commercial and Institutional sectors of the construction industry.

Objective

The Survey is designed to provide a reference guide used to estimate or determine the value of the construction industry as a whole.

Monthly Survey of Commercial Establishments*

Background

Started in 1983 in Mexico City's Metropolitan Area; and in 1984, the project was extended to the metropolitan areas of Guadalajara and Monterrey. In 1993, the coverage was stretched out to 15 cities. It reached a total of 33 cities by 1994.

Scope of the Survey

The purpose of the Survey is to investigate the actual situation of the Mexican commerce industry. The survey covered establishments belonging to two Major groups: wholesalers and retailers, in the short term. Companies report data for activity taking place during each previous month.

* Encuesta Mensual sobre Establecimientos Comerciales

Monthly Industrial Survey*

Background

Beginning in 1964, in order to provide up-to-date information about manufacturing conditions in Mexico, INEGI developed a monthly survey of manufacturing plants. Establishments in the manufacturing sector are often described as plants, factories, or mills and typically use power-driven machines and materials-handling equipment.

General Framework

Data of manufacturing industry is widely used by government agencies as well as private sectors for policy planning. Survey results reveal changes in several indicators of manufacturing activity, including production and shipments, employment, productivity and identify changes in prices of raw materials and finished products.

* Encuesta Industrial Mensual. (EIM)

MONTHLY SERVICES AND MONTHLY SERVICES AND TRANSPORTATION SURVEYS 2006TRANSPORTATION SURVEYS 2006

Tertiary Sector has an important share in the economy representing

around 70% in terms of the Gross Domestic Product (GDP)1

generated by the country. The INEGI, in consequence, realize several

studies in order to measure the sector's performance, by means of:

• Economic Census,

• Through the Mexico’s National Accounts System

• From the Monthly Services Survey (MSS) and their

corresponding structural projects with yearly periodicity.

Introduction:

Source: INEGI, Mexico’s National Accounts System

Economic importance of the sector

Gross Domestic Product 2005,according to Economic Sectors

Tertiary70%

Secondary26%

Primary4%

Source: INEGI, Mexico’s National Accounts System

Background of the Monthly Services Survey design:

• Updating directory of economics units, according to Economic Census 2004.

• Framework of UN on International Recommendations on Statistics.

• OECD recommendations.

• Application and implementation of NAICS 2002.

• Consult to internal and external users of the Survey.

Methodological foundation

See recommendations

To obtain indicators of Incomes, Expenses, Labor Force Employed and Wages .

Main ObjectivesMain Objectives

To serve as indicator of the economic performance of services and transports.

To serve as an input (basic statistics) for the estimate of Mexico's National Accounts System.

To serve as an input to generate indicators of the sector’s economic situation.

Specific Objectives Specific Objectives

Objectives

For the private sector as an input of market and financial feasibility studies.

For the public sector in the design and assessment of the economic policy and about the orientation of the public resources and design of social attention programs.

For INEGI, to be used in National Accounting.

For foreign consultants and international bureau organizations, in the orientation of capital flows and programs of multilateral support.

Usefulness

Group of surveysNAICS

Industry group

Tourism related services. 13

Professional Services. 14

Rental and warehousing services. 3

Educational Services. 6

Freight transportation and Courier Services. 8

Health Services. 2

Telecommunications. 11

Total Industry groups object to the survey 57

Financial Services (by administrative records) 11

Total Industry groups: 68

Services and Transportation groups, selected activities

Sectorial SurveysSectorial Surveys

Selection criteria:

The design sample is characterized being deterministic for 48 Industry groups of activity, with an average cover of 77% of the value of the census incomes, and by probabilistic design for 9 Industry groups .

NAICS

IndustryTitle

4811 Scheduled air transportation.

4812 Non scheduled air transportation.

4852 Interurban and rural passenger transportation.

5321 Automotive Equipment Rental and leasing .

5615 Travel arrangement and reservation services.

7131 Amusement parks and arcades.

7211 Traveler accomodation.

7212 (Recreational vehicle) Parks and recreational camps.

7213 Rooming and boarding houses.

7221 Full-Service Restaurants.

7222 Limited-Service Eating places.

7223 Special Food Services.

7224 Drinking places (alcoholic beverages).

Tourism related services

Industry groups with probabilistic design .

NAICS

IndustryTitle

5413 Architectural, engineering and related services.

5414 Specialized design services.

5415 Computer systems design and related services.

5416 Management, scientific and technical consulting services.

5417 Scientific research and development services.

5418 Advertising and related services.

5419 Other professional, scientific and technical services.

5511 Management of companies and enterprises.

5611 Office administrative services.

5612 Facilities support services.

5613 Employment Services.

5616 Investigation and security services.

5617 Services to buildings ans dwellings.

8131 Civic, professional and similar organizations.

Professional Services


NAICS

IndustryTitle

4931 Warehousing and storage.

5312 Offices of real estate agents and brokers.

5324 Commercial and industrial machinery and equipment rental and leasing.

Rental and warehousing services

NAICS

IndustryTitle

6111 Elementary and secondary schools.

6112 Junior colleges.

6113 Colleges, universities and professional schools.

6114 Bussines schools and computer and management training.

6115 Technical and trade schools.

6116 Other schools and instruction.


Educational Services

NAICS

IndustryTitle

4821 Rail transportation.

4831 Sea transportation.

4832 Inland water transportation.

4841 General freight road transportation.

4842 Specialized freight road transportation.

4885 Intermediation services for freight transportation.

4921 Foreign courier services.

4922 Local courier services.

Freight Transportation and Courier Services


NAICS

IndustryTitle

6221 General medical and surgical hospitals.

6223 Speciality hospitals.

Health Services

NAICS

IndustryTitle

5111 Newspaper, periodical, book and database publishers.

5121 Motion picture and video industry.

5122 Sound recording industries.

5151 Radio and television broadcasting.

5152 Cable and other suscriptions programming.

Telecommunications, 1/2

NAICS

IndustryTitle

5161 Internet and publishing broadcating.

5171 Wiret telecommunications carriers.

5172 Wiretless telecomunications carriers.

5175 Cable and other program distribution.

5181 Internet services providers and web search portals.

5182 Data processing hosting and related services.

Telecommunications, 2/2

NAICS

IndustryTitle

5211 Central Bank.

5221 Depository credit intermediation.

5222 Nondepository credit intermediation.

5223 Credit unions.

5224 Other institutions of credit and financial intermediation.

5225 Activities related to credit intermediation.

5231 Security and commodity contracts intermediation and brokerage.

5232 Security and commodity exchanges.

5239 Investment banking and securities dealing.

5241 Insurance carriers.

5242 Agencies, brokerages and other insurance related activities.

Financial Services1

1/ Collected by administrative records.1/ Collected by administrative records.

Scope

GeographicGeographic

IssuesIssues

PeriodicityPeriodicity

National representativeness

Worked days. Personnel who belong to the firm. Personnel who does not belong to the firm. Compensations. Expenses on goods and services consumption. Expenses not derived from the activity. Revenues for services rendered and goods sold. Revenues not derived from the activity.

Monthly

Reporting formats

Two questionnaries differentiated

by generic activity Services and

Transportation and Courier Services

Value of supplied

services by type

Annual reportingNAICS industryNAPCS product lists Services Transportation

and courierservices

Services. Transportation and courier

services:•Ground passenger and truck transportation.•Air transportation.•Water transportation.•Rail transportation.•Couriers and messengers.

Thematic issues by project

Thematic issues

Monthly Annual

I. Worked days.

II. Personnel who belong to the firm.

III. Personnel who does not belong to the firm.

IV. Compensations.

V. Expenses on goods and services consumption.

VI. Expenses not derived from the activity.

VII. Revenues for services rendered and goods sold.

VIII. Revenues not derived from the activity

I. Value of the production.

II. fixed assets

III. Characteristics of the service.

IV. Service opinion.

V. Value of supplied services by type.

Deterministic design for 48 Industry group of activity: a) Total coverage

For the following NAICS codes, 4812, Non scheduled air transportation, 4821, Rail transportation, 4831, Sea transportation and 5161, Internet and publishing broadcating, with a cover of 100%.

b) Middle coverage

It was included economic units with greater participation in the value income, until obtaining a equal or higher of 80%.

b) Lower- middle coverage

Is considered with low coverage, the NAICS code of activities whose participation in income is greater or equal to 70% and minor to 80%.

Statistical Design

Statistical Design

Probabilistic, to the industry code:

4841, General freight road transportation.4842, Specialized freight road transportation.5419, Other professional, scientific and technical services.6111, Elementary and secondary schools.6116, Other schools and instruction.6111, Elementary and secondary schools.7221, Full-Service Restaurants.7222, Limited-Services eating places.7224, Drinking places.

The probabilistic scheme of sampling is stratified, with random and independent selection for each one of the activity branches to consider the total of income, and responds to the following parameters:

Confidence level: 95%Relative Error: 10%Non response: 10%

It was used the Neyman´s method for the distribution of the sample in each layer, and includes with certainty layer 1 with 1.020 economic units.

Statistical Design

Collection Scheme

The MSS data collection according to the new framework of the conceptual, statistical design and sample (7.792 economic units), contemplates two slopes, that are:

•Interview method (entry data by the interviewer, into the Intranet System).

•Collecting by Internet, (direct entry from the informant by Internet System).

In both cases, the information is delivered and valided by electronic means, by direct input data Internet/Intranet, as well as in a direct way by the informant in the Internet system.

Activities

Conceptual designIdentification of objectives and reaches of the project. Redesign of the reporting formats.

Statistic designNAICS Industry selection.Sample selection and directory.

Data collection in fieldEconomic Units Verification in field (location, economic activity code, and observation unit).Continuous collection.

Enter dataBy Internet/Intranet.

Information dealing outTreatment, validation and analysis data (research activities).process certified by the quality standard: ISO 9001:2000.

Outcome Generation (summer of 2006).Monthly series, first 12 months and firs semester of 2006.

• Indicators.• Absolutes values.• Ratios.

process certified by the quality standard: ISO 9001:2000.

Activities and results generation

Process certified under ISO 9001:2000 International Standard

National Occupation and Employment Survey (monthly and

quarterly): Typology of labor markets under the SNA Institutional

Sector framework.

National Survey on Consumer Confidence (monthly).

National Household Income and Expenditures Survey (biannual).

Other economic surveys (in households)

Household Income and Expenditure Survey*

Background

The National Household Income and Expenditure Survey, is one of the most representative household surveys in Mexico, collected approximately every two years, since 1983. These series constitutes the longest running household surveys collected using a common and representative methodology at national level.

General Purpose

Reliable information on income and expenditures is critical for the calculation of national and state accounts, thus playing an important role in producing national and state development plans. In addition to these specific uses, the survey provides government and private planners with a wealth of economic data.

* Encuesta Nacional de Ingreso Gasto de los Hogares. (ENIGH)

Monthly and quarterly data are disseminated through a year-

advance release calendar.

Currently working in a calendar for annual surveys and national

accounts information.

Metadatas and methodologies are posted on INEGI’s and IMF

DSBB´s websites.

Press bulletins, electronic publications, hard copies, CD´s, data

bases and on-line systems.

IMF standards are observed.

Data dissemination

Documents

Instituto Nacional de Estadística, Geografía e Informática (INEGI), Mexico The Integrated Approach to Economic Statistics “ The Mexican Approach” Friends