Industry and Energy

Industry and Energy

The Division of Industry and Energy is one of the most important divisions in the Directorate of Economic Surveys. It oversees the implementation of surveys and statistical activities of the industry and energy sectors.

The division provides detailed data on the industry sector mainly for the National Accounts Directorate in order to extract the indicators and main results of this sector. It also provides data to all parties interested in this sector such as; planners, researchers and policy makers.

Overview of the survey

The Industrial Statistics Survey is an important economic survey that contributes to calculation of the GDP and employment. In view of this importance, the Division conducts an annual and quarterly survey of establishments engaged in the activities of this sector, namely; Quarrying, manufacturing industries and production and distribution of electricity.

The importance of this survey is highlighted by the set of data and indicators provided by the annual and quarterly industrial surveys that assist in preparation of economic statistical indicators and national accounts tables.

1 – General overview of the survey

1 -1: Introduction

The industrial sector in Jordan is an important sector contributing to the GDP and labor force. In view of this importance, the Department of Statistics (DoS) conducts an annual sample survey of establishments operating in this sector.

The importance of the survey is highlighted by the data set it provides on compensation of employees, paid capital, production requirements, production expenses, gross production, added value and volume of investment through the movement of fixed assets and other data that assist in the preparation of economic statistical indicators and the preparation of tables of national accounts.

1 -2: Survey Objectives

The survey aims to provide the following data by type of activity:

  • Compensation of employees such as; salaries, wages and benefits in kind and cash.
  • Production of detailed data on the value of gross production, value added and intermediate consumption.
  • Capital invested and capital formation.
  • Estimating the contribution of the industrial sector to the GDP, and providing the necessary data for the preparation of the national accounts according to the United Nations System of National Accounts 1993.
  • Data needed for economic analysis.
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Survey Coverage

The survey covers all establishments whose main activity is within (mining, quarrying, stone crushing, manufacturing, and production and distribution of electric power) in accordance with International Standard Industrial Classification, Fourth Revision (ISIC4).

Sample Design

The random stratified sampling method was used, where the sample was drawn at the region level. Thus, the population in each region was divided into five strata as follows:

stratum installations covered by the stratum
1 A sample of establishments employing 1-4 workers
2 A sample of establishments employing 5-9 workers
3 A sample of establishments employing 10-19 workers
4 All establishments employing twenty workers or more
5 All establishments numbering five or less workers within one activity

2 – ThePreparatory Phase

2 -1: Key Documents of the Survey

These documents include the survey questionnaire, instruction manual for field workers, rules of office and electronic checking and the coding manual. The main documents are summarized below:

  1. The Survey Questionnaire

A comprehensive review of the survey questionnaire is normally undertaken at the beginning of the year, taking into account to include all data and information that meet the survey objectives and provides data for preparing the national accounts tables in accordance with international recommendations. The questionnaire includes the following main topics:

– Identification data and general data of the establishment.

– Number of workers and compensations of paid workers.

– Intermediate consumption of commodity and service inputs.

– Main activity income.

– Secondary activities income.

– Payments and receipts from property return and financial transactions.

– Taxes and subsidies on production and imports.

– Financial assets and liabilities, movement of fixed assets and capital formation.

  1. The Instruction Manual and Edit Rules

This manual includes definitions, concepts used and instructions for field staff at all supervisory and executive levels. It also includes detailed explanation of all questions contained in the questionnaire and how to complete the data in such a way as to ensure the highest possible data accuracy. The manual also includes the basic edit rules to be followed by enumerators and edit staff while checking the questionnaires. The manual also contains the duties of the survey staff such as; supervisors, controllers, enumerators and edit staff, in addition to the electronic edit rules necessary to process data.

C .The Coding Manual

While designing the questionnaire, all items contained therein have been assigned with predefined codes. The International Standard Industrial Classification (ISIC) is used to code the economic activity and also the Central product Classification (CPC) manual. A directory of population localities prepared by the (DoS) is also used to code the geographical location of economic establishments.

2 -2: Definitions and Classifications

Statistical Unit: The establishment is considered the statistical unit of this survey. Accordingly, the work performed by each establishment has been reviewed and studied separately. If the group of works carried out by the establishment is found to be of homogeneous in nature and falls under one economic activity, then the establishment in this case is considered as a  statistical unit and all its data are recorded in one questionnaire. In the event that the establishment exercises more than one economic activity, and it is not possible to separate the input data, then the main activity is determined and the rest of the activities are considered as secondary activities and their data are included in the same questionnaire.

Total Production (Gross): It means the value of goods and services produced during a given period of time as a result of the production activity, whether primary or secondary, including self-produced goods and services, I.e.:

Gross Production = (production value of main activity + production value of secondary activities).

Where the value of the production of secondary activities (trade margins + revenues from services rendered to others).

Intermediate Consumption: The value of goods and services consumed as input to the main and secondary production process.

Compensation of Employees: They include the total salaries and wages in cash and in kind due to employees and the value of contributions of producers in social security premiums in addition to other monetary and in-kind benefits owed to employees.

Net Indirect Taxes: They mean all amounts owed by the establishment to the state or public institutions or municipalities, including: sales tax, customs duties, and license fees, building tax, vehicle license fees, revenue stamps, residence fees, work permits and any other fees due to the State, minus the value of production subsidies provided by the State.

Depreciation: It means the cost of replacing existing fixed assets that can be re-produced, except for roads, dams and similar constructions of government service producers, during an accounting period due to normal depreciation, obsolescence or the normal rate of damage. This does not include the unexpected obsolescence and damage caused by major disasters and depletion of the access of natural resources. Depreciation is calculated on the basis of percentages of the book value of fixed assets at year beginning and capital additions during the year.

Gross Fixed Capital Formation: It means the value of the establishment’s expenditure during a year for acquisition of new durable goods as an addition to its fixed assets (excluding land) minus its net sales of fixed assets used. Accordingly, the Gross Capital Formation can be calculated as follows:

Gross Capital Formation (during a year) = Purchases (imported and local, whether new or used excluding land purchases) + Value of assets from plant production + additions and improvementssold from fixed assets excluding land sold.

2 -3: Organization of Survey Cadres

The staff consists of the Survey administration which is entrusted with all administrative and technical supervisory functions, in addition to the office preparation staff, which consists of edit and coding staff. The field staff consists of controllers, edit staff and enumerators and works under supervision of the field supervisor.

2 – 4: Selection and Training of Enumerators

The survey staff was selected according to criteria related to the nature of the work and there was a focus on the quality of the employees in terms of academic level and specialization whenever possible. A training program was held for all employees, including definition of survey objectives, data collection methods and how to deal with the establishments. It also included a detailed explanation of all questionnaire items. At the end of the training, a written test was conducted to determine their comprehension levels of the concepts and questionnaire instructions.

3 – Data Collection Stage

3 – 1: Organization of Field Work

The fieldwork was carried out by the trained researchers selected under supervision of the controllers. The enumerators were divided into teams, each consisting of two or three, a controller and an edit employee. The field work was supervised by the field supervisor.

3 -2: Method of Data Collection

The data collection phase begins in March each year through a personal interview. If the data was not ready at the establishment, then the questionnaire would be left in the establishment so that the person concerned could prepare the necessary data.

3 -3: Field Edit

Field edit work was assigned to field edit staff where the completed questionnaires are checked in the field on the spot. In the case of errors in a questionnaire, it is returned to the enumerator to visit the establishment to correct the error.

4 – Data Processing Stage

4 -1: Office Processing

 After submitting the completed questionnaires to the Division of Industrial Statistics, they are fully checked by the office staff in the Division. Errors (if any) are rectified either by direct contact with the person concerned at the establishment or returned to the field supervisor to correct the error. The checked questionnaires are then coded and sent to the IT Directorate for data entry.

4 -2: Electronic Processing

After checking and coding of the questionnaires, they are sent to the Data Entry Division (IT Directorate) for data entry according to software specially prepared for this purpose. The entered data is then revised and checked for errors and corrected. The programmer then produces the preliminary results using the pre-set weight for checking and verifying the results.

4 -3: Tabulation and Dissemination of Results

After checking the initial results and verifying their soundness in terms of form and consistency of data within the table and with the other tables, then the final tables included in this report are extracted. These results are also posted on the web page of the (DoS).

  • Bulletins, Publications and Analytical Reports

The results of this survey are issued annually in paper and electronic formats.

  1. Compensation of employees (salaries, wages and benefits in kind and cash).
  2. Value of gross production, intermediate consumption and value added.
  3. Value of taxes on production.
  4. Value of capital invested and capital formation.
  5. Depreciation value of fixed assets.

The results of the annual survey are usually published at the end of May of each year.

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