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Regional economic accounts (reg_eco10)

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National Reference Metadata in Euro SDMX Metadata Structure (ESMS)

Compiling agency: National Institute of Statistics of Romania

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Regional accounts are a regional specification of the national accounts and therefore based on the same concepts and definitions as national accounts (see domain nama10). The main specific regional issues are addressed in chapter 13 of ESA2010, but not practically specified. For practical rules and recommendations on sources and methods see the publication "Manual on regional accounts methods".

Based on the experience accumulated since 1994, when Romania began cooperating with the French and Portuguese statistical institutes to develop the process for calculating regional accounts in accordance with ESA 95, the data were subsequently revised to comply with ESA 2010 and transmitted to Eurostat starting in the year 2000, with regard to their availability and reliability.

For regional accounts, in addition to the usual national accounts data sources (the Structural Business Survey – SBS and the Labor Force Survey – LFS), other industry-specific data sources from specialised departments of the National Institute of Statistics (INS) are also used, such as: the value of agricultural production by regions, data on local public utility activities, the labour force balance sheet, and others.

To compile GVA both at current prices and constant prices, data from several statistical surveys are used. These data are employed as allocation keys on the basis of which the national GVA for each division is regionalised. The data are aggregated at the A*10 level to obtain total GVA. According to the production method, based on the GVA obtained, product taxes and subsidies are regionalised in order to derive regional GDP.
Similarly, for the regionalisation of employee compensation from the national level for each division, allocation keys are also applied. The data are aggregated into 10 activity branches and a total value is obtained.

For the estimation of employed population, various allocation keys drawn from statistical surveys are used. Based on these keys, national-level values for employed persons and employees are distributed across regions in order to estimate the number of persons and the number of hours worked corresponding to the employed population and employees. The number of self-employed is calculated as the difference between the employed population and the number of employees.

Regional accounts in Romania include: regional gross domestic product (GDP) in current prices (CP) and previous years’ prices (PYP) at NUTS 3; regional gross value added by activity at NUTS 3; compensation of employees at NUTS 2; household accounts (the allocation of primary income account and the secondary distribution of income account) at NUTS 2; gross fixed capital formation by activity at NUTS 2; total employment and employees by branches of activity (number of persons) at NUTS 3; and the number of hours worked by total employment and employees by branches of activity at NUTS 2.

Accordingly with the new table from Eurostat, in 2024, NIS Romania completed the new table T1001 with data regarding the self-employees (in number of persons _NUTS3 and hours worked _NUTS2. But due to the lack of sufficient information, these data were obtained by the difference between the total employment and the employees.

In addition to the indicators mentioned above, on the TEMPO online database of NIS Romania, the following indicators are also published: GDP/capita _NUTS 3, RGDP in current prices_NUTS3. Currently, we work underway to extend the GVA by industry from NUTS 2 to NUTS 3 as transmitted to Eurostat.

31 January 2025

All statistical concepts and definitions to be used in national accounts are described in Annex A of the ESA 2010 Regulation ([link to blue book on ESA2010 methodology] ), No 549/2013 and amended by [EU regulation 2023/734], may be referred to for more detailed explanations on methodology.
For calculation methods and data collection, see the publication "Manual on regional accounts methods”.
Regarding the top-down method and because the sources covering regional data are not sufficiently detailed by economic activity (at the level of the 99 industries used by the Input-Output table), all primary calculations were performed on 52 branches. Furthermore, the final regional GDP table covers 35 branches due to subsequent adjustments based on more aggregated information.
In most cases, regionalization is done proportionally to the wages and gross incomes paid in a given industry and in a given region. These information’s comes from the Labor Cost Survey (the statistical unit type for this survey is KAU) and the Labor Force Balance Sheet.
In Romania the regionalisation of allocation of primary income account of households is done transaction by transaction. Considering the types of flows and, especially, the available data sources, four main groups of transactions are recorded and regionalised independently, such as: net operating surplus, mixed income, gross wages and salaries, employers’ social contributions and property income. The main keys used for the regionalisation of the allocation of primary income account’s transaction are: agricultural production value, imputed rent, wages, average number of employees etc.

Instead for the regionalization of secondary distribution of income account, the main keys use for the regionalizing transaction are: population by age group, land tax, tax on buildings from individuals, tax on means of transport owned by individuals, other taxes and fees on property, school population, amounts due as pensions to IOVR (pensions granted to the disabled and war injured, to the descendants of those who died or went missing in the war) pensioners, agricultural insurance pensioners and state social insurance pensioners, integration aid, compensatory payments, other social protection expenses, gross salaries, average number of employees, resident population, scholarships for pupils and students, etc..
Regarding the MIXT method, this was applied for several industries (fishing and fish farming, metal ore mining, other mining activities, iron and steel, crude oil processing, electricity production, transmission, and distribution). This method is based on information provided by SBS (chapter on information about headquarters, local units and their main indicators - turnover, employee expenses, average number of employees, average number of persons involved in the unit's activities, gross and net investments).

The main principle followed in compiling regional accounts in NIS Romania is the residence principle – allocation according to the region in which the producing unit is located.
Extra-regional data (e.g., value added created in national regions not located on the national territory, such as embassies, foreign military bases, energy production abroad, etc.) are treated like any other region; however, as there is no population in extra-regions, there is no GDP per capita for extra-regions.

GDP is measured using the output approach.

Annexes:
official site of statistical data

The basic units used by NIS Romania to describe production and consumption in national accounts are enterprises and public administration units. In regional accounts, local units are generally used to measure the flows involved in the production and consumption of goods and services. Some units may have a single location in a single region, while other units may be considered to be located in several regions. Consequently, regional accounts are based on local units.

Also the multiregional units are typical for some industries, such as electricity generation and distribution, postal services, communications, gas and water supply. An enterprise may have several local units located in different regions. SBS, which is the main source of data for most activities at the national level, contains a special chapter on regional indicators that provides the information for calculating regional output. Unfortunately, the SBS cannot be used to calculate regional indicators for all industries. The survey samples used for some industries are only representative at the national level. Usually, most enterprises with local units in more than one region are covered in full by the survey, which solves the problem of multiregional units.

National accounts examine the economy (or its main subsectors) as a whole. They combine data from a wide range of statistical surveys. The key element considered is the institutional unit, defined as a basic economic decision-making center. Institutional units produce goods and services and often carry out multiple activities simultaneously. Therefore, for an effective analysis of the production process, these institutional units need to be divided into smaller, more homogeneous units according to the type of production. This leads to the creation of local kind-of-activity units (local KAUs), which are grouped into industries (activity branches), and homogeneous production units (HPUs), which are grouped into homogeneous branches.
With regard to regional GDP, the economy is viewed as a whole, but the regional level is calculated according to the territorial breakdown known as NUTS 1, 2, and 3.

For estimating GDP per capita, as well as within the household sector, the resident population on July 1 is used by macroregions, development regions and counties.

The resident population includes persons who have immigrated to Romania, but excludes those who have emigrated from Romania. Starting with 2011, the number of residents has been estimated according to the usual residence criterion, using the component method and data from the most recent available census.

Also the regional account population data is in line with national account population data.

Annexes:
quality report
metadata

According to Law no. 315/2004 on regional development in Romania and the Nomenclature of Territorial Units for Statistics in Romania, along with the requirements of Regulation EC no. 1059/2003 of the European Parliament and of the Council on the stability of a common Nomenclature of Territorial Units for Statistics – NUTS, published in the Official Journal of the European Union no. L 154/2003, the economic territory of Romania is made up of 8 statistical regions and one extra-regional territory.

Thus, regional accounts are carried out on three administrative levels: NUTS1 – representing the 4 macro-regions, NUTS2 – representing the 8 statistical regions plus the extra-regional territory, and NUTS3 – representing the 41 counties plus the Municipality of Bucharest (see section 3.2).

The periods required for the compilation of regional accounts data are expressed in calendar years.

Overall accuracy increases with the size of the region concerned, e.g. NUTS2 data is more accurate than NUTS3 data. Information on accuracy can be seen in section 4 of National Quality Report (NQR).

There are some exceptions concerning variables related to population and labor that are usually expressed in number of thousand of persons or hours worked, otherwise the data series show all flows and stocks in monetary terms: in millions of euro. In addition to measurement in current prices, some regional accounts variables are also expressed in previous year's prices and growth rates (volume indices).

Regional aggregates are taken from the annual national accounts at the time of publication and are not updated until the next publication of regional accounts.

The leading approach to compile GDP in the framework of regional accounts in Romania is the production approach.
Within NIS Romania, the regionalisation of Gross Value Added (GVA) is carried out based on the available national data, primarily by applying the top-down method, and complementarily the mixed method, which is used for certain economic activities (such as the extraction and processing of minerals, the production and distribution of electricity, the chemical, petrochemical and tobacco industries, fishing, or postal services). The top-down method involves the allocation of national macroeconomic indicators to regions and counties, using specific distribution keys for each branch of activity, thus ensuring consistency between regional and national levels.

The distribution keys used for estimating GVA at regional level vary according to the specific characteristics of each economic activity. Similarly, product taxes (including VAT and customs duties) and subsidies are distributed across regions according to the structure of total regional GVA. The final outcome of this process is the Regional Gross Domestic Product (RGDP), calculated as the sum of regional GVA, product taxes, and customs duties, minus product subsidies, in accordance with the production approach.

The basic data (i.e. gross value added, population data and national GDP) used to calculate regional gross domestic product are provided by the national accounts departments of the NIS. The basic statistics come from several sources, including administrative data from public administration, censuses and surveys of enterprises and households. Eurostat's domain specific metadata file.
As in Romania regional GDP at market prices is calculated using the production method, we obtain GDP as the result of the sum of the gross value added of the different institutional sectors or branches of activity plus taxes, minus subsidies on products (which are not allocated to sectors and branches of activity).

In order to compile the data for regional accounts we used the methodology that are described in this website .

The frequency of dissemination for regional accounts data basically follows the requirements of the ESA 2010 Transmission Programme.
For regional data, NIS Romania transmitted at the end of December the following table: T1001 at NUTS 2 (for estimations T+12 month) and NUTS 3, T1002 at NUTS 2 and T1300 at NUTS 2.

The deadline for the transmission of basic data by NIS to Eurostat is according with the ESA 2010 Transmission Program, at the end of December.

The comparability is ensured by applying common concepts and definitions (European System of Accounts ESA 2010).
Romania NIS ensures coherence between the NUTS level and the NACE Rev.2 classification by respecting and applying the methodological concepts specified in both the ESA 2010 (Regulation (EU) No 549/2013), Chapter 13, and in the publication “Manual on Regional Accounts Methods.”
Information on comparability - geographical can be seen in section 6 of National Quality Report (NQR).

The document from this website is relevant for geographical comparability as it establishes harmonized concepts, classifications, and territorial breakdowns (NUTS) for compiling regional accounts, ensuring consistency and comparability of regional data across EU Member States.

Information on comparability – over time can be seen in section 6 of National Quality Report (NQR).

NIS Romania when realized the benchmark revision 2024 in regional accounts, it was a flag B on the indicator POP in 2012.