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![Page 1: Developing the prototype Longitudinal Business Database: New Zealand’s Experience Julia Gretton IAOS Conference Shanghai, China, October 2008 Email: julia.gretton@stats.govt.nz.](https://reader036.fdocuments.net/reader036/viewer/2022070414/5697c0121a28abf838ccc15f/html5/thumbnails/1.jpg)
Developing the prototype Longitudinal Business Database:
New Zealand’s Experience
Julia Gretton
IAOS ConferenceShanghai, China, October 2008
Email: [email protected]
![Page 2: Developing the prototype Longitudinal Business Database: New Zealand’s Experience Julia Gretton IAOS Conference Shanghai, China, October 2008 Email: julia.gretton@stats.govt.nz.](https://reader036.fdocuments.net/reader036/viewer/2022070414/5697c0121a28abf838ccc15f/html5/thumbnails/2.jpg)
Contents
1. The prototype LBD1
2. Development
3. Challenges and solutions
4. Legislative environment
5. Example outputs
6. Future use
7. Questions
1. Longitudinal Business Database (LBD)
![Page 3: Developing the prototype Longitudinal Business Database: New Zealand’s Experience Julia Gretton IAOS Conference Shanghai, China, October 2008 Email: julia.gretton@stats.govt.nz.](https://reader036.fdocuments.net/reader036/viewer/2022070414/5697c0121a28abf838ccc15f/html5/thumbnails/3.jpg)
1. The prototype LBD
• Use to date• Current research topics• Description• Coverage• Components
![Page 4: Developing the prototype Longitudinal Business Database: New Zealand’s Experience Julia Gretton IAOS Conference Shanghai, China, October 2008 Email: julia.gretton@stats.govt.nz.](https://reader036.fdocuments.net/reader036/viewer/2022070414/5697c0121a28abf838ccc15f/html5/thumbnails/4.jpg)
Use to date
• A selection of prototype official statistics have been produced
• Policy evaluation is being undertaken by government departments
• Informed Statistics NZ’s planning of the implementation of the Statistical Architecture
• Increased the use of microdata and ease of access• Enabled longitudinal analysis• Facilitated research (see next slide)
![Page 5: Developing the prototype Longitudinal Business Database: New Zealand’s Experience Julia Gretton IAOS Conference Shanghai, China, October 2008 Email: julia.gretton@stats.govt.nz.](https://reader036.fdocuments.net/reader036/viewer/2022070414/5697c0121a28abf838ccc15f/html5/thumbnails/5.jpg)
Current research topics
• Firm level patterns in merchandise trade • Firm dynamics, market structure and performance • Currency hedging behaviours of exporters • Comparison of quantitative and qualitative
performance measures• The impact of immigration and local workforce
characteristics on innovation and firm performance • International engagement and firm performance
![Page 6: Developing the prototype Longitudinal Business Database: New Zealand’s Experience Julia Gretton IAOS Conference Shanghai, China, October 2008 Email: julia.gretton@stats.govt.nz.](https://reader036.fdocuments.net/reader036/viewer/2022070414/5697c0121a28abf838ccc15f/html5/thumbnails/6.jpg)
Description
• Contains a wide range of data on New Zealand businesses
• The data is:– Longitudinal– Annual – Enterprise-based
• It was created by integrating administrative and survey data with Statistics NZ’s Longitudinal Business Frame
![Page 7: Developing the prototype Longitudinal Business Database: New Zealand’s Experience Julia Gretton IAOS Conference Shanghai, China, October 2008 Email: julia.gretton@stats.govt.nz.](https://reader036.fdocuments.net/reader036/viewer/2022070414/5697c0121a28abf838ccc15f/html5/thumbnails/7.jpg)
Coverage
• The LBD’s value is in its:– Length: 2000-2006 years (minimum)– Breadth: all economically significant enterprises– Depth: extensive demographic, financial, export
and survey data
![Page 8: Developing the prototype Longitudinal Business Database: New Zealand’s Experience Julia Gretton IAOS Conference Shanghai, China, October 2008 Email: julia.gretton@stats.govt.nz.](https://reader036.fdocuments.net/reader036/viewer/2022070414/5697c0121a28abf838ccc15f/html5/thumbnails/8.jpg)
Components
Goods and Services Tax
Government assistance
Customs
Employment (tax)
Company tax returns
Financial accounts (tax)
Annual Enterprise
Business Finance
Business Practices
Research & Development
Innovation
Business Operations
Administrative data Sample surveys
LBD
Longitudinal
Business
Frame
![Page 9: Developing the prototype Longitudinal Business Database: New Zealand’s Experience Julia Gretton IAOS Conference Shanghai, China, October 2008 Email: julia.gretton@stats.govt.nz.](https://reader036.fdocuments.net/reader036/viewer/2022070414/5697c0121a28abf838ccc15f/html5/thumbnails/9.jpg)
2. Development
• IBULDD (Improved Business Understanding via Longitudinal Database Development)– A two-year project to test feasibility– It developed the prototype LBD
• The project was successful due to:– Its strong governance– The cross-government support– Collaboration from data providers– An international peer group review of its direction
![Page 10: Developing the prototype Longitudinal Business Database: New Zealand’s Experience Julia Gretton IAOS Conference Shanghai, China, October 2008 Email: julia.gretton@stats.govt.nz.](https://reader036.fdocuments.net/reader036/viewer/2022070414/5697c0121a28abf838ccc15f/html5/thumbnails/10.jpg)
3. Challenges and solutions
• Database structure• Imputation• Confidentiality
![Page 11: Developing the prototype Longitudinal Business Database: New Zealand’s Experience Julia Gretton IAOS Conference Shanghai, China, October 2008 Email: julia.gretton@stats.govt.nz.](https://reader036.fdocuments.net/reader036/viewer/2022070414/5697c0121a28abf838ccc15f/html5/thumbnails/11.jpg)
Database structure
• The data came with many different formats, time periods and units of observation
• IBULDD developed the methodologies to apply standard periods and units to the data
• Decisions were made on how to structure the database
• Metadata for the completed database was created
![Page 12: Developing the prototype Longitudinal Business Database: New Zealand’s Experience Julia Gretton IAOS Conference Shanghai, China, October 2008 Email: julia.gretton@stats.govt.nz.](https://reader036.fdocuments.net/reader036/viewer/2022070414/5697c0121a28abf838ccc15f/html5/thumbnails/12.jpg)
Imputation
• Some source data already had imputation applied (eg surveys & GST)
• The LBD needed a census of key financial variables• Cases for imputation include:
– Businesses below thresholds to file returns or GST exempt– Incomplete or inconsistent returns
• Imputation methods used were:– Interpolation, historical, donor
![Page 13: Developing the prototype Longitudinal Business Database: New Zealand’s Experience Julia Gretton IAOS Conference Shanghai, China, October 2008 Email: julia.gretton@stats.govt.nz.](https://reader036.fdocuments.net/reader036/viewer/2022070414/5697c0121a28abf838ccc15f/html5/thumbnails/13.jpg)
Confidentiality
• Issues arise when data is linked• Protection methods used for the LBD include:
– Strict eligibility criteria for access applies– Users only have access to an anonymised version– Outputs are confidentialised and carefully checked
![Page 14: Developing the prototype Longitudinal Business Database: New Zealand’s Experience Julia Gretton IAOS Conference Shanghai, China, October 2008 Email: julia.gretton@stats.govt.nz.](https://reader036.fdocuments.net/reader036/viewer/2022070414/5697c0121a28abf838ccc15f/html5/thumbnails/14.jpg)
4. Legislative environment
• The LBD was developed within the requirements of three acts:– Statistics Act 1975– Tax Administration Act 1994– Privacy Act 1993
• These cover how microdata is supplied, used and accessed
![Page 15: Developing the prototype Longitudinal Business Database: New Zealand’s Experience Julia Gretton IAOS Conference Shanghai, China, October 2008 Email: julia.gretton@stats.govt.nz.](https://reader036.fdocuments.net/reader036/viewer/2022070414/5697c0121a28abf838ccc15f/html5/thumbnails/15.jpg)
5. Example outputs
• Innovation outcomes• Exporting manufacturers
![Page 16: Developing the prototype Longitudinal Business Database: New Zealand’s Experience Julia Gretton IAOS Conference Shanghai, China, October 2008 Email: julia.gretton@stats.govt.nz.](https://reader036.fdocuments.net/reader036/viewer/2022070414/5697c0121a28abf838ccc15f/html5/thumbnails/16.jpg)
Innovation outcomes
• Able to measure performance following the introduction of a product innovation
2001-02 2001–03 2001–04 2001–05
Product innovators 1656 21,341,958 691,724 532,671 777,495 620,522
Not product innovators 759 15,437,754 -655,280 -89,869 78,021 375,079
Innovation statusAverage
sales 2001 ($)
Average annualised sales growth($)Number of
enterprises
![Page 17: Developing the prototype Longitudinal Business Database: New Zealand’s Experience Julia Gretton IAOS Conference Shanghai, China, October 2008 Email: julia.gretton@stats.govt.nz.](https://reader036.fdocuments.net/reader036/viewer/2022070414/5697c0121a28abf838ccc15f/html5/thumbnails/17.jpg)
Exporting manufacturers
• Able to use a range of sources to identify exporters in the manufacturing industry and compare them with non-exporters
2000 2001 2002 2003 2004 2005
0
20
40
60Percent
Share of manufacturing enterprises Share of manufacturing employment Share of total employment
Exporting Manufacturers2000–2005
![Page 18: Developing the prototype Longitudinal Business Database: New Zealand’s Experience Julia Gretton IAOS Conference Shanghai, China, October 2008 Email: julia.gretton@stats.govt.nz.](https://reader036.fdocuments.net/reader036/viewer/2022070414/5697c0121a28abf838ccc15f/html5/thumbnails/18.jpg)
6. Future use
• Future use• Benefits
![Page 19: Developing the prototype Longitudinal Business Database: New Zealand’s Experience Julia Gretton IAOS Conference Shanghai, China, October 2008 Email: julia.gretton@stats.govt.nz.](https://reader036.fdocuments.net/reader036/viewer/2022070414/5697c0121a28abf838ccc15f/html5/thumbnails/19.jpg)
Future use
• Reduce respondent load by– Maximising use of existing data– Substituting survey data
• Efficiently produce new official statistics• Support new forms of dissemination• Enable new performance metrics to be
created• Facilitate additional research
![Page 20: Developing the prototype Longitudinal Business Database: New Zealand’s Experience Julia Gretton IAOS Conference Shanghai, China, October 2008 Email: julia.gretton@stats.govt.nz.](https://reader036.fdocuments.net/reader036/viewer/2022070414/5697c0121a28abf838ccc15f/html5/thumbnails/20.jpg)
Benefits
• Maximises use of all available data• Increases quality of outputs by improving
processes• Enables longitudinal analysis• Meets demand for evidence-based policy • Provides insight on the impact of policy and
business practices • Answers more specific research questions• Is adaptable and easy to update
![Page 21: Developing the prototype Longitudinal Business Database: New Zealand’s Experience Julia Gretton IAOS Conference Shanghai, China, October 2008 Email: julia.gretton@stats.govt.nz.](https://reader036.fdocuments.net/reader036/viewer/2022070414/5697c0121a28abf838ccc15f/html5/thumbnails/21.jpg)
7. Questions
Thank you
http://www.stats.govt.nz/economy/business/longitudinal-business-database.htm
Email: [email protected]