Internal Trade

Internal Trade

The Internal Trade Division is affiliated to the Directorate of Economic Surveys. It oversees the implementation of surveys and statistical activities of the division (wholesale and retail trade, vehicles’ trade, maintenance and spare parts).

The division provides detailed data on its activities through the annual survey and the quarterly indicators study. This data is basically used to calculate the Gross Domestic Product (GDP) and the economic indicators. It also provides data to planners, researchers and policy makers.

Overview of the survey
The Internal Trade 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 survey of establishments engaged in the activities of this sector, namely; wholesale and retail trade, motor vehicles’ trade, maintenance and spares parts in addition to the Quarterly Indicators Study conducted annually every four months for the same activities.

The importance of this survey is highlighted by the set of data provided on employees compensations, paid up capital, production inputs, gross production, value added and investment size through movement of the fixed assets in addition to other data that assist in preparation of economic statistical indicators and National Accounts tables.

1 – General overview of the survey

1 -1: Introduction

The internal trade sector in Jordan is an important sector since it contributes 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 the wholesale and retail trade, vehicles’ repair and maintenance.

1 – 2: Survey Objectives

The survey aims to provide the following data:

  1. Compensation of employees such as; salaries, wages and benefits in kind and cash.
  2. Gross production value and intermediate consumption.
  3. Capital invested and capital formation during the year.
  4. Estimating the contribution of the internal trade sector to the GDP, and providing the necessary data for preparing the national accounts according to the United Nations System of National Accounts 1993.
Read More

In order to provide statistical data on these sectors, a representative sample of the survey was drawn at the Kingdom level and the International Standard Classification (ISIC4) was used from the Internal Trade frame in accordance with the 2015 census.

We have provided the Methodologies and Statistical Techniques Unit with the frame and the establishments’ lists that were obtained in the previous survey for analysis and C.V. calculation to determine the sample size and design. Based on the representative and proportionate summary of the sampling unit, the appropriate design was agreed as follows:

  • The frame is divided into three sub-frames representing Jordan’s regions.
  • The frame in each region is divided into five categories according to the number of employees as follows:

The First Category: economic establishments whose workers number does not exceed 4.

The Second Category: economic establishments with 5-9 employees.

The Third Category: economic establishments with 10- 19 employees.

The Fourth Category: economic establishments with more than 20 workers.

The Fifth Category: establishments whose sales exceed (J.D. 500,000) five hundred thousand dinars and the number of workers within the first and second categories.

When designing a sample, the number of its items in any category in any activity should not be less than three observations. For the activity in which the number of establishments is less than eight, all of them are included in the sample (in the survey). The sample is randomly drawn in each category in each activity (four digits) in each region after the establishments in each category are arranged for each activity in each region according to the number of employees.

1 -3: Survey Coverage

The survey covers all establishments engaged in sale, maintenance and repair of motor vehicles and motorcycles, wholesale trade, commission sales and retail sales, which are included in chapter number 45, 46 and 47 of the International Standard Industrial Classification, Fourth Revision (ISIC4).

2 – The Preparatory Phase

2 -1: Main 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 and the Input and Output tables in accordance with international recommendations. The questionnaire includes the following main topics:

– Identification data and general data of the establishment.

– Compensations paid to workers.

– Intermediate consumption of commodity and service inputs.

– Revenues of the main activity, secondary activities and other revenues.

– Payments and receipts from property return and financial transactions.

– Taxes on production and imports.

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

  1. The Instruction Manual

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 for coding of commodities. 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 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 (these include industrial production+ revenues of services rendered to others+ revenues of other secondary activities).

Intermediate Consumption: The value of goods and services used as input for production (i.e., intermediate consumption = Value of commodity purchases adjusted by value of change in inventory + other production expenses).

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 natural resources.

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) + Value of assets from plant production + additions and improvementssales.

2 -3: Organization of the 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 enumerators selected under supervision of the controllers. They were divided into teams, each consisting of two or three enumerators and a controller.

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 delivering the completed questionnaires to the Internal trade Division, they are fully re-checked by the office staff in the Division. In case of any errors, the questionnaires are referred to the division head or his assistant for their decision. Errors are rectified either by direct contact with the person concerned at the establishment or to be returned to the enumerator so that he visits the establishment and corrects the error. The checked questionnaires are then coded and sent to the IT Directorate.

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 preliminary 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 are published in an annual report titled:” THE INTERNAL TRADE SURVEY”. These results are also loaded 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.

Data Bank