Improving the quality of Foreign Affiliates Statistics (FATS) by

exchange of micro data between Nordic countries

Nordic Statistics meeting in Bergen 2013

Teemu Oinonen, Statistics Finland

Eirin Totland, Statistics Norway

Test possible methods of improving the quality of the Foreign Affiliate Statistics by utilising information available within the European Statistical System related to the population of foreign affiliates.

Exchange information about Nordic owned affiliates and affiliates in the other Nordic countries to secure data quality and reduce resources needed

Objectives for the ESSNet project

Inward FATS: describes foreign controlled enterprises resident in the country that compiles the statistics

Outward FATS: describe enterprises controlled by the compiling country, but resident abroad

Residency of the so called ultimate controlling institutional unit (UCI) defines the nationalities of enterprises in both statistics.

Statistics explained

The main question when linking the foreign outward FATS with the domestic inward FATS is whether the frame population is identical?

We set up an approach to compare the outward FATS data against sources of information available nationally (business register, inward FATS, enterprise group register). Individual records were linked using the name of the enterprise.

Approach of comparison

Statistics compared to the results of linking data on

which they are based Affiliates in Finland

(UCI = Norway)

Affiliates in Norway

(UCI = Finland)

Number of enterprises Employment Number of

enterprises

Employment

What the statistics tell us

Outward FATS 100 3 200 160 12 600

Inward FATS 130 4 500 210 14 100

What we know after comparing data

Enterprises in both Outward FATS 60 3 100 130 12 200

and Inward FATS 60 3 000 130 13 000

Enterprises in Outward FATS only 40 100 30 400

and Inward FATS only 70 1 500 80 1 100

Overall results of comparisons

Differences in determination of the UCI is the biggest

problem for mirror comparison Both Outward FATS and Inward FATS are likely to

underestimate population totals, and Outward FATS more than Inward FATS

Analyses are needed to describe the non-matching enterprises, and the reasons for a non-match, as a tool for suggesting measures for improving the quality.

The manual checking of enterprises and analysing the

results is time consuming.

Main conclusions

Alternative 1: The use of EuroGroupRegister (EGR) to improve FATS statistics

Alternative 2: Co-operating with another statistical institute to improve FATS statistics

The agreement on the UCI is central to improving the quality of both Inward and Outward FATS.

Recommendations

The ESSNet report will be finalized by the end of 2013

Thank you for your attention