16 March, 2010

Beijing, China

THAILAND REGIONAL AND PROVINCIAL PRODUCT

1 National Accounts Office, National Economic and Social Development Board : THAILAND

Thailand513,115 Sq.Km.7 regions

Northern : 17 provinces North eastern : 19 provinces Southern : 14 provinces Eastern : 8 provinces Western :6 provinces Central : 6 provinces Bangkok Metropolis and vicinities : 6 provinces

76 provinces

2 National Accounts Office, National Economic and Social Development Board : THAILAND

Gross Provincial Product : GPP

National accounts for the country 3 approaches : Production, Expenditure and Income

GDP estimation via the production approach is necessary for the country.

Top-down approach is used to disaggregate VA of each activity of the country level to regional / provincial level.

GPP estimation normally bases on 2 methods

3 National Accounts Office, National Economic and Social Development Board : THAILAND

First methodUse only for agricultural sectorBecause of basic data is relatively perfectProduction, price are available in provincial levelBut intermediate cost structures are available in

regional levelCompute VA of each agricultural commodity at

regional level and then disaggregate to provincial levelVAregion i = GOregion i - ICregion i

VAprovince j = VAregion i x Prod. ratio ij

4 National Accounts Office, National Economic and Social Development Board : THAILAND

Second method

Use for all commodities in other sectorNo have data on production, price and

intermediate consumption at regional and provincial level

VA of each commodity at the country level are disaggregated to each province by proportion of relative production indicators to the country

VAprovince k = VAcountry x Prod. Ratiok

5 National Accounts Office, National Economic and Social Development Board : THAILAND

GPP & GRP presentation

ISIC rev. 3 has been used16 economic sectors

(exclude: Extra-territorial organization)Current pricesConstant prices at 1986 pricesGRPi = sum of GPP in region iPopulation and per capita GPP are presented13 months lag for dissemination

6 National Accounts Office, National Economic and Social Development Board : THAILAND

Problem

National Accounts Office, National Economic and Social Development Board : THAILAND7

It’s not technically perfect Because of

o Not reflect prices in difference region / provinceo IC is same proportion in every region / province

Accounting system can not be completed due to unadequate data

Many activities do not have a clear boundary, producing places and marketing spots are far away from each other.

o Transportation : mobile from one boundary to another, railroado Electricity generating, marine fishery, mining in the seao Mobile phone

Bottom-up approach

National Accounts Office, National Economic and Social Development Board : THAILAND8

In order to get the economic situation in each area correctly.

Since 2004: NESDB encourage each province (exclude BKK) to do GPP for themselves.

NESDB provide GPP concept and compilation methodology to local agency’s staff.

Little by little of quality of GPP-Bottom up are observed.NESDB still publicizes GPP officially (Top down).GPP statistics of each province can be utilized for his

own provinces in term of primary economic report.

Problem of Bottom-up approach

National Accounts Office, National Economic and Social Development Board : THAILAND9

Incomplete of data collectionHard to get data in some activity eg. Trade: head office

locate at BKK , the branch which in another province no have accounting data

Very often changing the local staff who are responsible for GPP compilation

Budgetary constraint

Thank youwww.nesdb.go.th

National Accounts Office, National Economic and Social Development Board : THAILAND10