LA – KLEMS Project: Mexico

1. LA – KLEMS Project:Mexico Francisco Guillén Martín Deputy General Directorate for National Accounts INEGI-Mexico

2. LA KLEMS – Mexico Project Implementation SUMMARY A). Offices of the System of National Accounts - Mexico which are linked to the project. B). Main challenges to the construction of annual statistical series. 1. Inter-sector accounts 2. Labor accounts 3. Capital accounts C). ITs measurement and its role in productivity. D). Some Preliminary Results

3. A). Offices of the SNA Mexico which are linked to the project

4. B) Main challenges to the construction of annual statistical series 1. Inter-sectorial Accounts • KLEMS economic activities classification requires a wide sectorial breakdown, so it was needed to harmonize the economic classification for censuses and polls, the NAICS ‘02 and the SNA Mexico for the series 1990-2008. • In order to get data for the components of intermediate consumption by activity, it was required the use of all economic censuses and polls available for the referred period. • A particular challenge resides in determiningthetechnology output forown use at business, homes and othereconomicagents.

5. B) Main challenges to the construction of annual statistical series 2. Labor Accounts • IT specification on labor data set out a strong conceptual and methodological requirement (there is not a clear definition on the relationship of people with ITs) that is hard to achieve for the complete series. Thus, available data from polls and administrative records is being gathered, in order to estimate it. • Another challenge is to conceptually determining data from employment polls for its KLEMS classification as well as for its breakdown by sex, age, education (high, medium, low); on this very last issue there is not a clear definition. What must be understood for each of these educational levels?

6. B) Main challenges to the construction of annual statistical series • If this definition of educational levels is leave up to each country, thera is a loss in comparability. Nevertheless, the data from employment tables which have generated from the ENE and the ENOE, in order to satisfy the LA KLEMS requirement, using some statistical-mathematic procedure that does not distort the original demographic basic data trend.

7. B) Main challenges to the construction of annual statistical series 3. Capital Accounts For fulfillment of the objective of this project, SNA Mexico data on gross capital stocks and net stocks at acquisition costs and at replacement value through the Perpetual Inventory Method (PIM) was used for the 1990-2008 Annual Series. The challenged that is now being undertaken is the calculation of the time series, with the economic activity breakdown required for the LA-KLEMS; this task is being developed through statistical and mathematic methods supported on data from the Economic Polls and Census, which allows to obtain product-capital elasticity coefficients by economic activity.

8. C) ITs measurement and its role in productivity Information Technologies measurement and its role in productivity The quantification on stocks, employment an input is made through total supply of ITs sectors and through statistical data available for these economic sectors, as well as with the calculation of technical coefficients on the use of this technology, obtained through the Supply and Demand Tables, Economic Censuses, annual polls and administrative records, which will allow to identify their contribution in each ITs related factor (KLEMS): • Computer equipment. • Communication equipment. • Software.

9. D) Some preliminary results. The next table shows the economic variables which have been calculated to date, for the 1900-2008 series, at both current and 1995 constant prices.

10. D) Some preliminary results. Inter-sectorial Accounts • Intermediate Consumption Value Taking into account that the sum of its three required components equals total intermediate value for the referred economic activity, its composition at current values was obtained from 1993, 1998 and 2003 census data, as well as manufacturing polls and administrative records for energy, transportation and all other services. The resulting values were adjusted to the intermediate consumption value registered in the output accounts of each activity. • Intermediate Consumption Value at constant values For calculation of these aggregates, the intermediate consumption for each activity was taken as constant, and its composition was obtained through deflecting its three components with price indexes calculated from energy rates, producer and consumer prices and implicit IC prices.

11. D) Some preliminary results.]

12. D) Some preliminary results. WP2 and WP3: Labor Account and Capital Account We have a considerable progress in the analysis and conciliation of basic data available for the labor account and the capital account, so we expect to deliver the results in time and on the required format . Data related to job posts and worked hours, by sex, age and education are available to NAICS sub-sector levels, for the 1900-2008 period, as a result of the ENE-ENOE data re-processing.

13. D) Some preliminary results. Labor Account Progress. For the 1990-2008 series, technical coefficient were calculated with the following data sources.

14. D) Some preliminary results.]

15. Thank you