| Technical
Notes: Gross Regional
Domestic Expenditure
Definition: Gross Regional
Domestic Expenditure (GRDE) is defined as the expenditure
of resident institutional sectors of the region in the domestic
territory plus their expenditures in other regions including
the rest world. This is intended to complement the current
series of the Gross Regional Domestic Product (GRDP), which
is being prepared by the Economic and Social Statistics Office
(ESSO) of the National Statistical Coordination Board (NSCB).
The first GRDE estimates were prepared by
the NSCB in 1987 covering the series 1975-1987. The latest
GRDE available is for 1996 and this series (1994-1996) now
includes separate estimates for ARMM. Estimation methods for
CARAGA are currently under study and expenditure estimates
for this region will be available in the immediate future.
Components:
The GRDE includes regional estimates on the
following:
- Personal Consumption Expenditure (PCE)
- Government Consumption Expenditure (GCE)
- Gross Value in Construction
- Gross Domestic Capital Formation on Durable Equipment
- Gross Domestic Capital Formation in Breeding Stocks and
Orchard Development
- Changes in Stocks
- Net Exports
Data Sources
- PCE - National Statistics Office,
Local Water Utilities Administration, Land Transportation
Office, Bureau of Internal Revenue, Department of Energy,
National Economic Development Authority Regional Office,
RSCS
- GCE - Commission on Audit, Government
Service Insurance System, Social Security System
- Construction - National Economic Development
Authority, Department of Transportation and Communication,
National Irrigation Administration, Department of Public
Works and Highways, Philippine Ports Authority, National
Electrification Administration, Local Water Utilities
Administration, National Statistics Office.
- Durable Equipment - National Statistics
Office, National Power Corporation
- Breeding Stocks and Orchard Development
- Bureau of Agricultural Statistics, Bureau of Animal
Industry
- Changes in Stocks - Bureau of Agricultural
Statistics, Department of Energy, National Statistics
Office, Commission on Audit
Considerations: In using
the GRDE for specific studies or analyses, the following points
should be considered: The GRDE estimation is based on the
national aggregation of the national income accounts. This
is broken down by regions using various indicators. Specifically,
the major expenditure items are estimated as follows:
- For Personal Consumption Expenditure (PCE), the national
estimate is distributed by region based on the structure
of the Family Income and Expenditure Survey (FIES). The
final expenditures of non-profit institutions serving
households, which is included under PCE, is the same as
that of the household expenditure.
- For private construction at constant price, regional
distribution is based on the structure of the Building
Permits data. Private construction at current prices is
estimated by inflating the regional constant price level
by the regional consumer price index (CPI). For public
construction disaggregation by region is based on the
regional breakdown of the infra program of NEDA and validated
by the individual agencies' infra programs. An under coverage
ratio is applied for private construction which is assumed
to be the same ratio across regions.
- The regional distribution for durable equipment is
based on the results of the Annual Survey of Establishments
(ASE) and the Census of Establishments (CE). As such,
the estimates are affected by the limitations of these
surveys.
- Estimates of the changes in stocks for non-agricultural
industries use the ASE/CE for regional distribution. Data
for stocks in agriculture and government are readily available.
- The General Government Consumption Expenditure (GGCE)
is estimated by region based on the data from the Commission
on Audit (COA).
Limitations
- The latest GRDE available is for 1996 since estimates
of some of the expenditure items rely on the results of
the ASE and CE. The latest CE is 1994 while the latest
ASE is 1995.
- In the absence of data on regional trade flow, net
exports is derived as a residual item. Hence, net exports
refer to the combined effect of the income flows between
regions, the commodity flows between regions and the rest
of the world and statistical discrepancy.
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