Transcript Construction In SNA - Asian Development Bank

Construction In SNA
Concepts and Estimation
Topics
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Classification
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Construction economic activity
Construction-related capital formation
Estimation of Gross output and GVA of
construction
Estimation of Construction-related capital
formation
Data sources for estimation
Weights in price index compilation
Classification of Construction
Economic Activity (ISIC Rev 3.1)
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45 Construction
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451 Site preparation
452 Building of complete construction or parts
thereof; civil engineering
453 Building installation
454 Building completion
455 Renting of construction or demolition equipment
with operator
Classification of Construction
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Economic Activity (Proposed ISIC Rev 4)
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39 Construction of building
391 Construction of residential buildings
 392 Construction of non-residential buildings
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40 Civil engineering
401 Construction of roads and motorways
 402 Construction of utility projects
 403 Construction of other civil engineering products
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Classification of Construction
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Economic Activity (Proposed ISIC Rev 4)
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41 Special Trades
411 Site preparation
 412 Building installation
 413 Building completion
 414 Other specialized trades
 415 Renting of construction or demolition equipment
with operator
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Construction-related Economic Activity
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Economic Activity (ISIC Rev 3.1)
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74 Other business activities
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742 - Architectural, engineering and other technical activities
 7421 - Architectural and engineering activities and
related technical consultancy
Economic Activity (Proposed ISIC Rev 4)
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66 Architecture and engineering activities; technical
testing and and analysis
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661 Architectural and engineering activies and related
technical consultancy
SNA Classification of Constructionrelated Capital Formation
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Land
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Cost of land improvement which is part of
construction activity but not included in construction
of building
Dwelling, residential buildings
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all structure, permanent or movable used as dwelling,
includes fixtures customarily installed in building and
site clearance and preparation, exclude mobile
dwelling units such as boathouses and caravans
SNA Classification of Constructionrelated Capital Formation
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Other building and structures:
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Non residential buildings: also includes
fixtures, equipment and facilities that are
integral part of the structure, site clearance
and preparation included in building
construction
Other structures: roads, bridges,
communication and power lines, pipelines,
etc..
Estimation of Output and Value
Added of Construction
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Gross Output :Total value of the product of the
construction and construction-related activity
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Intermediate input – the value of product (goods and
services produced) which are used in production
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Value added or primary input – value or payment
for the use of resources (human resources, produced
and natural resources, financial resources, intangible
assets) and taxes in production
Value added constitute the income generated from
production
Intermediate input
Produced
fixed R
Value added
Financial R
Natural R
Output
Intangible
produced
Primary input/
value added/
income
generated
government
Human R
T-S
CFC
Goods &
Services
from
Production
Intermediate
input
Sale
OS
COMP
OUTPUT
goods
and
services
Production
Output
Change in
inventory
Own final
use
Estimation of Output
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Direct estimation of Gross Output
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Quantity approach
= quantity of product * producers price
Cost approach
= intermediate input + primary input or value
added
Disposition approach
= sale + own use+ own final use
Estimation of Output
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Indirect estimation of Gross Output
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Extrapolation
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Based on sample
Based on input indicators
Based on related variables: building permits, budget for
infrastructure
Production parameters
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Input share: production and net imports of construction
materials and building fixture and equipment
Technical parameters based on building permits
Others
Estimation of Gross Value Added
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Direct estimation of gross value added
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Residual approach
GVA = Gross output- intermediate input
Cost/income approach
GVA = compensation + consumption of fixed
capital+ taxes net of subsidies in production +
operating surplus(interest, rent of natural
asset, gross profit)
Estimation of Gross Value Added
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Indirect estimation
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Using sample data on output and gross value
added parameters
GVA t = GO t *gvar
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gvar = (GO-II)/GO
Using sample data on gva
GVA t = GVA t-1 * gvat/gva t-1
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Using related indicators
GVA t = GVA t-1 OI t/Oi t-1
OI = output indicator :
value of major input,
construction index
Estimation of Gross Value Added of
Construction at Constant Prices
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Double deflation
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GVA 0 t = GO0t – II 0t
Using sample data on output and gross value
added parameters at constant prices
GVA 0t = GO 0t *gvar0
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Using quantity indicators
GVA 0t = GVA 0t-1 * QIt/QI t-1
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Using Output price deflator
GVA 0t = GVA t /PI0t
QI = quantity indicator:
employment, construction
materials, etc
PI= price index:
construction price index,
construction material price
index, etc..
Estimation of Construction-related
Capital Formation
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Expenditure on site clearance, preparation
and land improvement, reclamation, etc
Expenditure on construction of residential
building(exclude movable dwelling such as boats, mobile
home or caravans)
Construction of buildings
 Facilities, equipment, facilities as integral part of
building
 Architectural design
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Estimation of Construction-related
Capital Formation
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Expenditure on non residential buildings,
includes,
Construction
 Architectural design
 Equipment, facilities and fixtures which are integral
part of the building
 Site clearance and preparation for residential
buildings
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Estimation of Construction-related
Capital Formation
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Expenditure on construction of residential
building(exclude movable dwelling such as boats, mobile
home or caravans)
Construction of buildings
 Facilities, equipment, facilities as integral part of
building
 Architectural design
 Site clearance and preparation for non residential
building
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Estimation of Construction-related
Capital Formation
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Expenditure on other structures, includes
Expenditure on site clearance, preparation and
land improvement other than under buildings,
reclamation, etc
 Engineering design and management
 Structures
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Related Construction Capital Formation
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Change in inventory (work in progress) – ongoing
construction by developers for which there is no
contracted owners
Linkage of Construction Activity and
Construction-related Capital Formation
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Economic Activity
Manufacturing
Construction
Business services
Import
Equipment
Construction services
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Capital Formation
Residential building
Non residential
buildings
Other structures
Change in inventory
Land
Intermediate input
Excludes construction for own final use
Data Sources for Compilation of
Construction and Construction-related
Capital Formation
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Economic censuses and surveys
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Output and cost of construction activities
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Main contractors
Subcontractors
Export of construction services
Value of repair and maintenance
Capital formation
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Expenditure on buildings and structures
Purchase of equipment( for equipment and fixtures which are
integral part of the structure not included in the payment for
construction
Work in progress (for developers)
Data Sources for Compilation of
Construction and Construction-related
Capital Formation
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Household surveys
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Household economic activities on construction
Own account construction
Expenditure on construction of new residential
building
Government finance statistics
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Government expenditure on construction
Government expenditure on architectural and
engineering design, construction management
services
Data Sources for Compilation of
Construction and Construction-related
Capital Formation
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Foreign trade statistics
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Financial statement of companies
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Import of building fixtures and equipment
Output and expenditure on intermediate input of
construction companies and real estate developers
Expenditure on building and structure, land
improvement and equipment of all companies
Other administrative-based data
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Application for building permits
Data Sources for Compilation of
Construction and Construction-related
Capital Formation
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Price Statistics
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Construction price index
Producers price index
Import price index for construction materials and
building fixtures
Consumer price index
Volume indices
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Employment index
Volume of construction index
Other related volume index
Weights in Construction GO, GVA and
Construction-related Capital Formation
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Use of Input-output table Ex_of_input_output_table.xls
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input structure of construction economic activity in
input output table
Structure of use disposition of output and import on
construction-related activities
Use benchmark or base year on GDP estimates
Use of combined sources form government
finance statistics, financial statements from
companies, import statistics and household
surveys
Use of construction parameters