RECOMMENDATION ON ESTIMATION OF FULL VOLUME OF RETAIL COMMODITY TURNOVER

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1 RECOMMENDATION ON ESTIMATION OF FULL VOLUME OF RETAIL COMMODITY TURNOVER During the period of economic tranition a ignificant expanion of coverage of retail trade, creation of trade new type, and development of private ector create neceity of re-etablihment of tatitical urvey method and indicator ytem of retail commodity turnover according to international tandard and NAS principle. The main point of retail trade turnover i final conumption of the population or commodity ale for ue in houehold. The total volume of retail commodity turnover i formed by following group: - large and medium enterprie turnover; - mall enterprie turnover; - retail commodity turnover by private owner engaged with trade in outide of market (peron engaged with buine activity without forming legal entity baed on licene of tax authoritie); - turnover by market and fair of food, commoditie and mixed good. Etimation of volume of retail commodity turnover by trade enterprie (mall, large and medium) of legal entitie The tatitical information on volume of good old to population by economic unit of legal entitie i formed baed on report of regitered trade enterprie (including enterprie, the main activity of which i not trade) and urvey. The volume of retail commodity turnover i characterized chematically by the following formula: V t = V l.m. + V V t volume of retail commodity turnover by legal entitie; V l.m. volume of retail commodity turnover by large and medium enterprie; V volume of retail commodity turnover by mall enterprie Statitical information on volume of retail commodity turnover by large and medium enterprie covering all branche of economy i formed baed on ource document of monthly urvey. A a rule, tatitical obervation of mall enterprie i carried out baed on quarterly ample urvey. The volume of commodity turnover of mall enterprie

2 by population i defined baed on average commodity turnover per enterprie involved in urvey: V V N urvey. urvey. N V - total volume of commodity turnover of mall enterprie; V urvey. - volume of commodity turnover of mall enterprie involved in urvey; N urvey.- number of mall enterprie involved in urvey; N.- number of mall enterprie in total population. Definition of total population i implemented baed on principle of ample urvey methodology. In cae of intentional decreaing of primary data or unpreenting data, the primary data ubmitted by trade enterprie hould be adjuted on the bae of unaccounted volume of correponding indicator; and data adjuted on the bae of full accounting rate of turnover by tate tatitical urvey form hould be ued a baic from tandpoint of databae of large, medium and mall enterprie. Accounting of volume of informal activity in retail trade ector that belong to legal entitie, by mean of different traditional tatitical method i impoible. In cae of unpreenting of report or decreaing of correponding data, the correction to primary data may be implemented by mean of comparion of time erie of indicator of tatitical and accounting report. In order to etimate the volume of retail commodity turnover by enterprie operated but unpreenting report intentionally (for example, avoid tax payment and etc.), it i neceary to pecify the number of thee enterprie. For thi purpoe, total population by large and medium enterprie and lit of enterprie preented report i grouped by type of economic activity and compared and number of enterprie unpreented report i defined. Total population of enterprie unpreented report by ample population i ued with regard to mall enterprie involved in quarterly ample tatitical urvey. The definition of enterprie unpreented report i poible by mean not only activity type, but place of regitration of thee enterprie. Etimation of volume of retail commodity turnover by natural entitie engaged in ownerhip activity without forming legal entity Private ownerhip activity play an important role in formation of retail commodity turnover in outide of market without formation of legal entity, which make half of it hare and that why pecial requirement on organizational and methodological aurance of tatitical urvey on trade activitie are brought into

3 focu. Information on trade activity of natural entitie engaged in buine activity without forming a legal entity i obtained baed on periodical ample urvey. The bai of urvey lit make regiter (total population) of private owner. In order to provide with ufficient accuracy of reult, the total population i grouped baed on everal indicator uch a region, economic activity type, property type, number of employee and etc. The lit of ample unit involved in urvey by mean of ytematic ample i formed baed on ample lit divided and regulated by purpoe. Total population i compiled baed on average indicator of turnover by each group of ample population, and hare of each group in total population (or from number of unit). Concerning of ample data in total population i carried out by the following formula: Y d n d k1 Y d - aggregate indicator of the urvey; W k - ample weight of k unit ; Y k - k unit etimation; d - etimation index by territory; n d - number of unit involved in urvey. W The volume of retail commodity turnover by private owner engaged in buine activity without forming legal entity i etimated after obtaining of the information on average monthly turnover by number of private owner by total population and per private owner engaged in trade out of market. Etimation of volume of commodity turnover in market of food-product, commodity and mixed good Accounting of ale of conumer good to population by different citizen (natural peron) in pecially place detined for trade market (fair of food, commodity and mixed good, market of agriculture product) i carried out baed on quarterly ample tatitical urvey by mean of official tatitical quetionnaire form. Firt, it i neceary to compile the regiter of market and fair a well a to tudy the ytem of organization of trade in market. The regiter of food, commodity and mixed good fair and agriculture product market i approved by correponding decree of the SSC of the Republic of Azerbaijan and quarterly report on agriculture product market and fair that i compiled and preented by head of agriculture product market and food, commodity and mixed good k Y k

4 fair baed on official tatitical report form 1 Market (fair). Several requiite, uch a property form of fair and market, activity type, number of ale area, number of eller, payment for per ale area, number of working day of fair and market that are conidered neceary for conducting of next ample urvey are compiled and preented to tatitical office by management of market and fair. Information on lit of operated market and fair a well a ale area in them i obtained by mean of available tatitical urvey form. The aggregate number of eller -N T (peron/day) i etimated baed on number of peron engaged in trade and number of working day: N T = N t * D w N t number of trader; D w number of worked day of market. For example: if there i 75 ale area in market and all of them are operated during the month then aggregate number of eller i equal to (75x30)=2250 peron/day. If in market 30% of ale place are occupied by repreentative of other trade organization (legal entitie or operated trade enterprie without forming legal entity), and 70% - occupied by natural peron paid duty per day, per week and etc. to market manager then aggregate number of eller by market and fair i equal to 1575 peron/day: Average monthly volume of retail ale by per fair and market i etimated by mean to multiply aggregate number of eller during the month (peron/day) by commodity turnover per eller per day. The urvey i being conducted during two day in quarter (working day and Sunday) and the hare of working day and Sunday i ued for etimation of average per day turnover per eller during correponding period: V S V S w w 100 V w and V - average volume of per day commodity turnover by per eller in working day and Sunday; S w and S -hare of working day and Sunday in correponding month; The adequate price index of conumer good, number of place in fair and market during next month and number of trading day per month i ued in order to etimate the volume of ale in market for next month before following urvey. According to urvey reult the volume of average elling per day per eller for

5 next month i etimated by mean of multiply of average elling per day per eller by price index of conumer good (price index in report month compared to urveyed month). For example, S ty - i the volume of average ale per day per ale area in January (in urvey month). For etimation of commodity turnover (Ə f) in February the volume of average elling per day per ale area in January i multiplied by correponding price index (price index in February compared to January), in February number of ale area in fair and market, and in February number of worked day of fair and market, i.e: V f = N tf * S y * N w * J p here: V f -volume of commodity turnover in February; N tf - number of operated ale area in February; S y - volume of average per day elling per ale area during January; N w - number of worked day of market and fair in February; J p - price index in February compared to January. Etimation of full volume of retail commodity turnover including nonorganized marketing The non-organized marketing (highway retailing, near the hop, market and etc.) turnover i not covered by above-mentioned method of formation of retail commodity turnover. The volume of trade turnover in non-organized phere i etimated baed on comparion of total volume of retail commodity turnover with expenditure pent by houehold for purchaing of good (referring to total population) in budget tatitic. Compared with indicator of commodity turnover the monthly volume of retail commodity turnover i defined baed on etimated rate with regard to heavy expene pent for purchaing of good in houehold. During the year the volume of retail commodity turnover by non-organized marketing i defined baed on etimation of additional rate by following formula once a year: V ex K e = V t K g- additional rate of etimation; V t - total volume of retail commodity turnover by organized marketing including reduced or unpreented volume; V ex - volume of expenditure pent for purchaing of good.

6 Total volume of retail commodity turnover, including informal activity i etimated by mean to add report data to additional etimated data: V= V r + V n + V d + V f + V mf + V e.in V- total volume of retail commodity turnover; V r - retail commodity turnover baed on indicator of report ubmitted by legal entitie; V n - retail commodity turnover etimated baed on operating enterprie but not ubmitted report; V d - decreaed volume of retail commodity turnover by enterprie ubmitted report; V f - volume of retail commodity turnover by private owner engaged in buine activity without forming legal entity; V mf - retail commodity turnover by market and fair; V e.in - etimated volume of retail commodity turnover by informal activity. Trade Statitic Departmenti

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