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3.9. ACTIVITY OF FOREIGN AFFILIATES (FATS)

Responsible department: Business Statistics Department, vallalkozasstat@ksh.hu

Responsible person: Édes Marianna, (36) 1/345-6723, marianna.edes@ksh.hu

Legal base – international:

Regulation (EC) No 716/2007 of the European Parliament and of the Council of 20 June 2007 on Community statistics on the structure and activity of foreign affiliates

Commission Regulation (EC) No 364/2008 of 23 April 2008 implementing Regulation (EC) No 716/2007 of the European Parliament and of the Council, as regards the technical format for the transmission of foreign affiliates statistics and the derogations to be granted to Member States

Commission Regulation (EC) No 747/2008 of 30 July 2008 amending Regulation (EC) No 716/2007 of the European Parliament and of the Council on Community statistics on the structure and activity of foreign affiliates, as regards the definitions of characteristics and the implementation of NACE Rev. 2

Commission Regulation (EC) No 834/2009 of 11 September 2009 implementing Regulation (EC) No 716/2007 of the European Parliament and of the Council on Community statistics on the structure and activity of foreign affiliates, as regards the quality reports

Purpose of statistical domain: The aim of the Foreign AffiliaTes Statistics (FATS) is to measure the effects and degree of ultimate foreign control in particular countries and sectors. FATS statistics facilitate comparing the management and efficiency of Hungarian and foreign-owned affiliates. Foreign-owned companies are to be classified according to the country of the ultimate controlling institutional unit.

Content: Inward FATS statistics contain the number of enterprises as well as indicators of prerformance, investment, employment and R&D.

Classifications used in statistical domain: For the compilation of Inward FATS data we use activity and geographical breakdowns, based on the regulation on NACE Rev.2 and the regulation of the European Council on statistics of foreign affiliates. The basis of the geographical breakdown is the country register, the usage of which is regulated by Direction No. 2/1997 (SK 1.) of the President of the Hungarian Central Statistical Office (HCSO).

Data sources: The compilation of Inward FATS statistics is mainly based on secondary data processing. We have two ways to define foreign ownership. For huge enterprises we use the "Annual report on capital investment" (questionnaire No. 2168 in OSAP (National Programme for Statistical Data Collection)), issued by the Central Bank of Hungary, while in case of the others we use tax returns. We take over the values of data from statistics on the annual performances of enterprises, investment statistics (annual integrated business statistics, 9 OSAP questionnaires and R&D statistics (OSAP questionnaire No. 1074). The country codes of enterprises having ultimate control over resident affiliates are available in different ways. First we take the information from the EuroGroup Register (EGR) or we collect them through the annual integrated business statistics questionnaires. We either search the missing data on the internet, or for the small enterprises we impute them by mathematical methodology.

Forms of dissemination:

Data transmission to international organisations: We supply Inward FATS data to Eurostat and OECD yearly. Eurostat publishes our data in NewCronos.

Timeliness, revision policy and practice: The deadline of data transmission to Eurostat is the end of the 20th month after the reference period. We send the data to the OECD after they are published by Eurostat. There is no planned revision. Occasionally we correct data errors. There is a correspondence between SBS data and some aggregates of Inward FATS data. That is why we have to correct Inward FATS data as well after the correction of SBS data.

History of statistical domain: Eurostat tenders helped our preparations for the obligatory data transmission (from reference year 2007). In the frame of a PHARE project we compiled our first test data of Inward FATS for reference years 2003, respectively. Since then we have had Inward FATS data every year. We have compiled Inward FATS data from already existing data sources. The only exceptions were the country codes of enterprises having ultimate control on a resident affiliate, which we searched for the data on internet. We could not find for the country codes of the whole population, so till 2006 the coverage is not 100%.


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