About the statistics

1. Administrative information

1.1. Name

Foreign controlled enterprises in Norway, structural data

1.2. Subject group

10.01

1.3. Frequency and timeliness

Yearly. The statistics are released within 20 months after the reference year, starting with the statistics for the year 2007.

1.4. Regional level

National level. Abroad is divided into countries and country groups.

1.5. Responsible division

940 - Division for Credit Market Statistics

1.6. Legal authority

The statistics are based on the re-use of various primary statistics and the associated authority, which is § 2-2 and § 3-2 of the Statistics Act. 2-2 and § 3-2 of the Statistics Act.

1.7. Legal document(EU)

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 (the FATS regulation)

The statistics are prepared in line with recommendations by Eurostat, stipulated in "Recommendations manual on the production of Foreign Affiliates Statistics" (Doc. Eurostat/C4/FATS/LO/SEP06/5 (2006)).

1.8. International reporting

Reporting to Eurostat and the OECD

2. Background and purpose

2.1. Purpose and history

The purpose is to provide a complete overview of foreign-controlled enterprises' economic activity in Norway, and their effect on the Norwegian economy, particularly in relation to employment and added value.

The 2006 figures have been produced as part of a project with financial support from the European Commision.

2.2. Users and applications

Figures on foreign-controlled enterprises' activity in Norway are used to measure the extent of globalisation, international trade negotiations and economic research, amongst other things. Users are authorities, industry, embassies, education and research institutes etc. Data is also reported to Eurostat (the Statistical Office of the European Communities) and the OECD, in line with the obligations stipulated in the EEA agreement and other international agreements.

3. Statistics production

The FATS statistics are based on Statistics Norway's structure statistics. Refer to About the statistics concerning the various structure statistics for further details.

3.1. Population

The statistics cover foreign-controlled enterprises in Norway, i.e. subsidiaries that are controlled either directly or indirectly by an enterprise abroad. See section 4.1 for a closer definition of "foreign-controlled". Only active enterprises are included in the population. Figures are also presented for the industry as a whole as a reference for the statistics on the foreign-controlled enterprises.

The statistics cover enterprises within the main industry sectors; oil and gas exploration and mining and quarrying, manufacturing, building and construction, commodity trade, repair of vehicles, household goods and goods for personal use, hotel and restaurant, transport, storage and communication and property management, rentals and business services.

Enterprises within power an water supply nad financial services and insurance are not currently included in the population. Neither are agriculture and forestry, fishing, public administration, education, health and social work and other community, social and personal service activities.

3.2. Data sources

In order to define which companies are controlled from abroad, we use the register of foreign assets and liabilities in Norway (the SIFON register) and the balance of payments reporting. Until 2003, the annual survey on foreign assets and liabilities (the Financial Census) was the main source for updating the SIFON register, while the Directorate of Taxes' register of shareholders has been the main source since 2004. The press and Internet etc. are also used to map new foreign-controlled enterprises in Norway, and to map the ultimate country of ownership (the country in which the enterprise in the ownership chain that is not controlled by another enterprise is located).

3.3. Sampling

The FATS statistics include a full count of active foreign-controlled enterprises.

3.4. Collection of data

There is no separate data collection for statistics on foreign-controlled enterprises' activity in Norway, cf. 3.2. These statistics are based on Statistic's Norway's structure statistics, which in turn use data from administrative registers such as the Directorate of Taxes' standard industrial form, the register of company accounts at Brønnøysund, the census of entrepreneurs liable to value added tax (the VAT register) and the Norwegian Labour and Welfare Organisation's register of employers and employees. Additional information is also collected for the structure statistics from separate forms completed by a sample of enterprises.

3.5. Control and revision

Controls and alignments are carried out in the structure statistics of the data that emanates from tax questionnaires and supplementary forms for the enterprises included in the sample. Industry classification, number of employees, turnover, salary expenses, other operating costs, operating result, investments and costs of goods are all particularly critical controls.

The revision of the data material is carried out according to comparisons with figures for the previous year, the central register of establishments and enterprises, the register of company accounts at Brønnøysund, other available sources and in consultation with the customer where necessary.

With regard to the foreign-controlled enterprises, ownership is checked by reviewing the data from the register of shareholders, and with information from accounts and the companies' websites etc. on the enterprises' ultimate country of ownership.

3.6. Estimation

Not relevant.

3.7. Confidentiality

Figures are not published where a cell in the table consists of less than three units, as this may enable the identification of a respondent, i.e. where figures can be traced to a respondent. This also applies to cells with more than three units where a respondent is of such a size that it can be identified.

4. Concepts, variables and classifications

The FATS statistics document the economic activity of foreign-controlled enterprises in Norway. A foreign-controlled enterprise is defined as a company that is controlled by an enterprise or other economic unit abroad through an ownership interest of more than 50 per cent. The FATS statistics therefore cover subsidiaries that are controlled either directly or indirectly by an enterprise abroad.

4.1. Definitions of the main concepts and variables

Number of enterprises
In the Standard Industrial Classification (SN), an enterprise is the smallest combination of legal entities that produce goods or services, and which to a certain extent have independent decision-making powers.
Number of employees
The number of employees is defined as the sum of owners and paid employees working in the enterprise. Persons with more than one position may be counted as employed in more than one business. Figures on number of employees in the structure statistics show an average number of employees for the year.
Salary and personnel costs
Salary costs include wages, holiday pay, fees etc., employer's National Insurance contributions, reportable pension costs and other personnel costs. Salary costs do not include remuneration to owners of sole proprietorships or general partnerships, or to family members with no fixed salary.
Turnover
Turnover is defined as the enterprise's operating revenues minus public subsidies, special public duties in relation to sales and profit from the sale of fixed assets. Taxes and duties are included, but VAT is not.
Production value
Production value is defined as turnover adjusted for changes in the stock of finished goods, work in progress and goods and services bought for onward sale. The purchase of merchandise is deducted, while capitalised investments by the company are added.
Production value for the main industry sector C Oil and gas exploration
Due to poor data quality purchases of goods purschased for resale are not included.
Value added (factor prices)
Value added is defined as the sum of the output value minus the purchase of goods and services (for goods and services other than those bought directly for onward sale) and adjusted for changes in the stock of raw materials and consumables. Special public subsidies for manufactured/sold goods and other public subsidies//reimbursements are included.
Total purchase of goods and services
The total purchase of goods and services includes the value of all goods and services that are purchased during the course of the year for onward sale, for use in the enterprise's own production process or for storage. The procurement of tangible fixed assets is not included in these figures.
Purchase of merchandise
The purchase of merchandise includes the value of all goods that are purchased by the enterprise for onward sale without any further processing.
Gross investments
Gross investments include procurements of fixed capital, such as buildings and plants (excluding housing), machines, tools, instruments, fixtures and fittings and transport (excluding private use), both new and used. Sums spent on improvements/extensions to these are also added. Gross investments are quoted exclusive of incoming VAT.

4.2. Standard classifications

Norwegian Standard Industrial Classification (SIC2007), which is based on the industrial classifications approved by the EU (NACE Rev.2 ) and the UN (ISIC Rev.4).

Enterprises that operate businesses in a number of industries, are in principle classified according to the business that contributes most to the company's total added value. The country codes are in accordance with the ISO standard for country codes, ISO 3166.

5. Sources of error and uncertainty

5.1. Measurement and processing errors

The quality of the statistics are dependent on the register base, as well as the quality of the data reported. Respondents can make errors when completing forms, and Statistics Norway's registering of data may contain errors. Errors in this connection can include using incorrect scales, e.g. NOK instead of NOK 1 000, or incorrect interpretations of definitions and accounting principles etc.

5.2 Non-response errors

Not relevant.

5.3. Sampling errors

Not relevant.

5.4. Other sources of error

Not relevant.

6. Comparability and coherence

6.1. Comparability over time and space

Definitions of some identifiers, e.g. number of employees, have changed during the period to which the figures relate. Attempts have been made to take this into consideration in order to make the figures as comparable as possible over time.

6.2. Coherence with other statistics

The figures for the individual industries included in the FATS statistics are based on Statistics Norway's enterprise-based structure statistics for these industries. The structure statistics provide detailed information on the activity in different industries. The direct link to the structure statistics makes it possible to make industry comparisons between nationally-controlled and foreign-controlled enterprises. For more information about the different industries see structure statistics

With regard to foreign ownership, the statistics on foreign direct investments in Norway (inward FDI) are related to the FATS statistics. The statistics on inward FDI stocks describe the liabilities abroad in the form of foreign-owned share capital and other capital linked to direct investments. However, these statistics say little about how foreign ownership interests in Norway affect other aspects of the Norwegian economy. The FATS statistics are extremely helpful in being able to describe this effect, and are a natural continuation of Statistics Norway'' existing statistics on the globalisation field.

Statistics of foreign direct investments in Norway. Previously published figures of foreign ownership, turnover and number of employees etc. for all industries, with 1989 as the final year, are available in the Banking and credit statistics no. 22/92. For "manufacturing"http://www.ssb.no/english/subjects/10/07/indutleie_en/ , the last figures were published in 1999.

Figures for individual industries are not directly comparable with the figures used in the national accounts. This is mainly due to the fact that while enterprises form the basis for the FATS statistics, the national accounts are based on statistics in which establishment is the unit. In addition, there are differences in definitions of characteristics and variables.

7. Availability

7.1. Publications and other links

The statistics are published as Today's statistics, and are available on the Internet and in StatBank Norway.

7.2. Microdata

Raw data and revised microdata are stored in accordance with Statistics Norway's standard for archiving files (DataDok).


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