Improving the quality of Foreign Affiliates Statistics (FATS) by exchange of micro data between Nordic countries

1. 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

2.  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

3.  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

4.  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

5. 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

6.  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

7.  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

8. The ESSNet report will be finalized by the end of 2013
Thank you for your attention