25 Nov 2024

Last update 3 / 03 / 2020

Foreign Trade Indices Methodologies

Contents:

Introduction

 First: Scope

Second: Design

Third: Organization

Fourth: Data collection

Fifth: Disaggregation

Sixth: Review

Seventh: Publication

Eighth: Assessment

Ninth: Management

 

 

Introduction:

The General Authority for Statistics (GaStat) applies in all its statistical work a unified methodology that conforms with the nature of each statistical product. It depends on the Handbook of Statistical Work Procedures, which is compatible with internationally approved procedures. Statistical products go through eight major stages, in addition to a ninth stage represented in the comprehensive “management” stage which is illustrated in the following figure and the subsequent explanations: 

 

 

 

The first three stages (scope, design and organization) are collaborative stages between GaStat and its clients who are data users from development entities. The fourth stage (data collection) is a collaborative stage between GaStat and the statistical population, whether they are households or establishments, to complete data and information. The remaining stages (disaggregation, reviewing and publication) are statistical and are undertaken by GaStat. Afterwards, the eighth stage (assessment) is again done in collaboration with GaStat’s clients. The (management) stage is administrative and organizational and spans all other stages. Those stages have been applied to the preparation of the foreign trade indices as follows:

 

First Stage: Scope:

It is the starting point for producing the foreign trade indices. It is also the first collaborative stage between GaStat and other stakeholders, such as the Ministry of Economy and Planning, Ministry of Finance, Saudi Arabian Monetary Authority, and GaStat’s National Accounts Statistics Department. Workshops and meetings were held at this stage between the authority and those entities to reach a better understanding of their needs and know their requirements. The views of those entities are taken into consideration to ensure the attainment of all the  goals of the foreign trade statistics, which are summed up as follows:

  1. Describe the evolution of prices and volumes.
  2. Measure foreign trade performance.
  3. Meet international, regional and national requirements.
  4. Support decision-makers, policymakers, researchers, and those who are interested in getting comprehensive and updated statistics related to foreign trade indices in Saudi Arabia.
  5. Provide updated statistics on:
  • Value indices (exports and imports) for a period of time.
  • Volume indices (exports and imports) for a period of time.
  • Trade exchange rates (net, total and domestic) for a period of time.
  • Relative changes of imports indices for a period of time.
  • Relative changes of imports indices for a period of time.

It has been confirmed in this stage that all published statistics will contribute to fulfilling the requirements of Saudi Vision 2030 and meeting other regional requirements, such as the requirements of the GCC Statistical Center, and international requirements, such as the requirements of the United Nations,  World Trade Organization and other organizations concerned with export and import statistics.

Second Stage: Design:

It is the stage of designing statistical work as an integrated product. It involves identifying statistical sources, determining the base year, adopted statistical classifications and the method and tools of data collection. Clients are made partners in all those procedures to benefit from their observations to meet all requirements and ensure that they are part of the statistical product. The most important outputs of this stage are:

  1. Statistical Sources:

The foreign trade indices bulletin’s main source of data is the exports and imports data extracted from the administrative records provided to GaStat by relevant government entities. GaStat then takes this data and calculates its indicators and issues foreign trade indices statistics.Data sources are as follows:

  1. Data completed by the Ministry of Energy, Industry and Mineral Resources: The main resource for petroleum exports.
  2. Data completed by the Saudi Customs: The main resource for non-oil commodity exports and imports.

 

2- Setting the Base Year:

The year (2012 = 100) was chosen as the base year to calculate exports and imports’ indices. A base year is the year or period which the prices of the comparison year or comparison period are attributed to. When the base year is chosen, it should be a normal period characterized by stability and being free from sudden and serious conditions, such as economic crises and wars.

3- Terminology and concepts of the statistics of foreign trade indices:

  1. Base Year: It is the year or period which the prices of the comparison year or comparison period are attributed to. When the base year is chosen, it should be a normal period characterized by stability and being free from   sudden and serious conditions, such as economic crises and wars. It must also be relatively close to the comparison period, which is usually 12 months. It can be taken as a fixed or a variable base, so its prices are attributed to its previous prices only.
  2. Comparison Year: It is the year or a period where its prices are attributed to the base year in order to measure changes in prices.
  3. Relative Importance (Weighting): When preparing the unit value average index, the volume of the comparison year has been used for weighting according to (Paasche) style. As for the preparation of the volume index, the value averages of the base year has been used for weighting according to Laspeyres collective style.
  4. Mathematical formulas used in calculating the indices:

When preparing exports and imports value indices, GaStat relied on the following formulas:

 

Adopted Statistical Classifications:

Classification is defined as being an arranged set of related categories used for data collection according to similarity. It is the basis for collecting and publishing data in all statistical fields, such as economic activity, products, expenditures, jobs or health,  etc). The classification of data and information by assigning them to meaningful categories allows for the production of useful statistics. Data collection requires accurate and systematic arrangement on the basis of similar features so that statistics can be reliable and comparable. The foreign trade indices are subject to international standards with regard to the collection and classification of their data. The basic foreign trade data are classified based on the Harmonized Commodity Description and Coding System (H.S.2017) developed by the World Customs Organization (WCO), which is a multipurpose international product nomenclature that classifies commodities into sub-items, numeric codes, sections and chapters in accordance with the Convention on the Harmonized Commodity Description and Coding System signed in Brussels  .

Coverage: 

Foreign trade indices cover all imported and exported goods to and from Saudi Arabia during a calendar year.

Third Stage: Organization:

It is the final preparation stage and precedes data collection. In this stage, the required workflow procedures are established for preparing the foreign trade indices bulletin, starting with the collection stage and ending with the assessment stage and the organization and grouping of those procedures. The optimal sequence of those procedures is chosen to arrive at a methodology that achieves the goals of the statistical product. A review was made in this stage of the procedures that were taken upon the preparation of the previous version of the foreign trade indices bulletin to develop the work procedures in the current version. Those procedures were also described and documented to facilitate any updates in future rounds. The statistical workflow procedures were tested and examined to ensure their compliance with the requirements of preparing the foreign trade indices bulletin, approve the procedures of the statistical workflow, and develop a roadmap for implementation.

Fourth Stage: Data Collection:

GaStat coordinated with the Saudi Customs and the Ministry of Energy, Industry and Mineral Resources to obtain the data of the foreign trade indices including data of petroleum exports, non-petroleum commodity exports and imports. The data is stored on GaStat’s database. The process of checking and reviewing this data is done according to scientific statistical methodology and recognized quality standards in coordination with the issuer of data.

 

 

Fifth Stage: Disaggregation:

The disaggregation of raw data for the foreign trade indices relied on the classification and coding inputs of the data collection stage, as the disaggregation was based on the Harmonized Commodity Description and Coding System (H.S.2017) developed by the World Customs Organization (WCO), which is a multipurpose international product nomenclature that classifies commodities into sub-items, numeric codes, sections and chapters   in accordance with the Convention on the Harmonized Commodity Description and Coding System signed in Brussels.

The bulletin's data have been displayed in suitable tables to facilitate the process of summarizing, understanding and comprehending them and also drawing conclusions from them, in addition to comparing them to other data. Data arranged in the form of clear tables are easier to refer to.

Data is processed at this stage through taking a number of steps, mainly:

First: Verifying Data Comprehensiveness and Coherence:

Data are reviewed and matched to ensure their accuracy and precision in a way that suits their nature with the aim of giving the presented statistics quality and accuracy. Data are compared with base year prices to measure price change and ensure their integrity and consistency in preparation for processing data and extracting and reviewing results in the stages that follow the disaggregation stage.

Second: Data anonymization:

GaStat ensures that data are confidentially preserved and are only used for statistical purposes. Materials prepared for publication are aggregated statistical tables of a number of variables related to the foreign trade indices.

Sixth Stage: Reviewing:

First: Verifying data outputs: 

After reviewing and verifying the data collected from administrative records at the fourth stage, GaStat calculates and extracts the results and uploads its outputs to its database where they are stored. Final reviews are then conducted by foreign trade indices specialists using modern technologies and software designed for reviewing and auditing data.

Second: Handling of confidential data:

Pursuant to Royal Decree No.23 dated 07/12/1397, GaStat is committed to the absolute confidentiality of all completed data and not using them except for statistical purposes. Therefore, data are safely stored on GaStat’s servers.

Seventh Stage: Publication:

First: Preparing and setting results for publication:

 

In this stage, GaStat coordinated, organized and reviewed the data contained in the bulletin. Afterwards, publication tables and graphs for data and indicators were set and prepared, had descriptive and methodological data added to them and were prepared in Arabic and English.

Second: Preparing media material and announcing the bulletin’s release date:

After GaStat announced the Bulletin’s release date on its official website at the beginning of the calendar year, the Authority prepares the required media materials to announce the Bulletin’s release on all media outlets, as well as its various social media platforms. The announcement will be made on the date set for publication. The bulletin will be published on the official website in various templates of open data in Excel format.

to guarantee its circulation and accessibility to all clients and parties interested in foreign trade indices. The bulletin will be included in the website’s statistics library. 

Third: Communicating with the clients and providing them with the bulletin: 

GaStat pays great importance to communicating with the clients who use the data. Therefore, GaStat communicates with the clients upon the publication of the foreign trade indices bulletin to provide them with it. GaStat also receives the clients’ questions, enquiries and requests with regard to the bulletin and its results through various communication channels: 

  • GaStat official website: www.stats.gov.sa  
  • GaStat email: info@stats.gov.sa
  • Client Support:  cs@stats.gov.sa
  • Visiting GaStat’s headquarters in Riyadh or one of its branches in the regions of the Kingdom.
  • Official Letters.
  • By Statistical Phone (920020081)

Fourth: Preserving the published content:

GaStat’s Documents and Archives Center stored and archived the data of this bulletin to refer to it at any time on request. GaStat took that step out of its awareness of the importance of electronically preserving those data to easily refer to them when needed.

 

Eighth Stage: Assessment:

After the bulletin is released and received by all GaStat’s clients, the clients are contacted again in this stage which allows for assessing the whole statistical process that was carried out, with the aim of constant improvement to obtain high-quality data. The improvements may include  methodologies, processes, systems, statistical researchers’ skill and statistical frameworks. This stage is done in collaboration with data users and GaStat’s clients through a number of steps:

First: Collecting measurable assessment inputs:

Main comments and remarks are collected and documented from their sources at all stages, such as the remarks deduced by specialists concerned with reviewing, checking and analyzing data collected from administrative records. Comments and remarks presented by data users are collected and documented after publication, in addition to what is being monitored via media outlets or the clients’ remarks which GaStat receives through its main channels.

Second: Making the assessment:

Collected assessment inputs are analyzed, and the results of such analysis are compared with pre-anticipated results. On that basis, a number of improvements and possible solutions are defined and discussed with specialists and experts. The parties concerned with foreign trade indices are also engaged in the matter. This step also involves performance measurement of the clients’ use of the results of the foreign trade indices and their satisfaction with it. An agreement will be made on the basis of those procedures on the suggested recommendations to obtain high-quality data in the results of the next foreign trade indices bulletin.

Ninth Stage: Management:

 

This stage is comprehensive and spans all other stages of producing the Foreign Trade Indices Bulletin. The Management stage involves drawing up the general production plan, which includes feasibility study, risk management, means of funding, and disbursement mechanisms, as well as developing performance indicators, quality parameters, and human resources map that is necessary for production. The stage also involves following up on the execution of tasks assigned to all departments in every stage, and making reports to ensure that the authority fulfills its commitments towards its clients.

                       

Allah is the Arbiter of Success.

 

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