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28 May 2002

ISIC 4 questionnaire - Summary of responses A3

A. Conceptual and structural issues 3. The application of the classification principles leads to the definition of categories at various levels of detail. Is the level of detail in ISIC adequate? Should more detailed categories be introduced and if so, in what sectors and for what purpose? Should more detail be added to better reflect the informal sector of the economy? Are there areas of ISIC in which there is too much detail? Which ones and why?

The first part of the question, concerning whether the level of detail of ISIC was adequate, drew much response. Some 22 countries offered opinions on this question, with a slightly larger proportion of countries (12) saying yes, they considered the current level of detail in ISIC to be adequate, while 10 countries indicated that the level of detail was not adequate. 5 countries offered responses that were indeterminate in nature, citing that ISIC was adequate in some respects but inadequate in others. The general point of view of the answers that were indeterminate was that a double structure would provide an optimal solution, with a two-digit or three-digit structure serving for international comparability and a four or more- digit structure serving at national level. Countries warned that at any rate, each individual change should be justified and that such changes try to reflect the realities of survey sampling, stratification and estimation. In answer to the question as to whether more detailed categories should be included, a total of twenty-five countries expressed opinions. Recommendation was made for more detailed categories for scores of categories in ISIC (see table attached). There were however, a few recommendations that were consensual. 10 respondents indicated that they would like to see Service industries generally, being given more detailed categories. The next most popular request (9 respondents) was for Division 74 – Other business activities and specifically Class 7499 - Business services n.e.c., to be split into more detailed categories. Group 642, Telecommunications and Division 45 – Construction were the next most favoured (6 respondents each) for the introduction of more detailed categories. Five respondents each, cited ICT and Environmental Protection as areas warranting the introduction of detail categories. Less well supported (3 respondents each) for the introduction of/of more detailed categories were the areas of Tourism, Wholesale/retail, e-commerce/electronic retail, recycling. Among respondents, the question on whether there was too much detail in any parts of ISIC was not frequently addressed, suggesting that this was not an issue. Seven countries addressed this aspect of Question A3, six of those responding answered in the affirmative, while one respondent indicated that there was not too much detail in any part of ISIC. Among the responses, Divisions 96 and 97 were most often cited as areas where there is too much detail in ISIC. Respondents specifically noted that these Divisions challenged the conceptual integrity of ISIC. Some 13 countries answered the question on whether more detail should be added to adequately reflect economic activity in the informal sector. An overwhelming 8 countries indicated that no detail should be added, while three countries preferred to see more detail added for the informal sector. Two countries were indifferent on account of the fact that it did not bear direct relevance to their national economic situations. Specific suggestion was made to create groupings using production function criteria.