the norwegian balance of payments sources and …reports 98/23 the norwegian balance of payments...

98/23 Rapporter Reports

Elisabeth Nørgaard

The Norwegian Balance ofPaymentsSources and methods

Statistisk sentralbyrå • Statistics NorwayOslo-Kongsvinger

Rapporter

Reports

I denne serien publiseres statistiske analyser, metode- og modellbeskrivelser fra deenkelte forsknings- og statistikkområder. Også resultater av ulike enkeltunder-søkelser publiseres her, oftest med utfyllende kommentarer og analyser.

This series contains statistical analyses and method and model descriptions from thedifferent research and statistics areas. Results of various single surveys are also pib-lished here, usually with supplementary comments and analyses.

© Statistisk sentralbyrå, november 1998Ved bruk av materiale fra denne publikasjonen,vennligst oppgi Statistisk sentralbyrå som kilde.

ISBN 82-537-4600-8ISSN 0806-2056

Emnegruppe09.03 Balance of Payments

EmneordBalance of PaymentsNational AccountsExportsImportsTrade in servicesCurrent account balanceForeign investmentInternational reserves

Design: Enzo Finger DesignTrykk: Statistisk sentralbyrå

Standardtegn i tabeller Symbols in tables SymbolTall kan ikke forekomme Category not applicable

Oppgave mangler Data not available

Oppgave mangler foreløpig Data not yet available

Tall kan ikke offentliggjøres Not for publication

Null Nil

Mindre enn 0,5

av den brukte enheten

Less than 0.5 of unit

employed

Mindre enn 0,05

av den brukte enheten

Less than 0.05 of unit

employed 0,0

Foreløpige tall Provisional or preliminary figure

Brudd i den loddrette serien Break in the homogeneity of a vertical series

Brudd i den vannrette serien Break in the homogeneity of a horizontal series

Rettet siden forrige utgave Revised since the previous issue

Abstract

Elisabeth Nørgaard

The Norwegian Balance of Payments

Reports 98/23 • Statistics Norway 1998

Statistics Norway has undertaken a main revision of the Norwegian National Accounts and the Norwegian Balance ofPayments. The Balance of Payments is an integrated part of the National Accounts and is constructed as a mirror image ofthe institutional sector "Rest of the World" in the National Accounts. Revised timeseries for both statistics have beenpublished back to 1978.

This report presents the sources and methods used in the compilation of the Norwegian Balance of Payments. The Balance ofPayments is a statistical statement of Norway's economic transactions with the rest of the world, within a specific period oftime. The statistics are compiled and presented in accordance with international guidelines. The report also describes the basicconcepts and recommended recording practices laid down in the IMF manual; "The Balance of Payments Manual, 5thedition". This manual is in full accordance with the manual for the National Accounts "System of National Accounts 1993".

The report starts with a description of the conceptual framework, the relationship with the National Accounts and apresentation of the main statistical sources. The Balance of Payments consists of two main parts; a current account and thecapital and financial account. Exports and imports of goods and services, compensation of employees, investment incomeand expenditure and current transfers to and from the rest of the world are recorded on the current account. The capital andfinancial account shows capital transfers and purchases and sales of financial instruments. The report describes in detail thesources and methods used for the current account, and the capital and financial account, as well as presenting figures andtables. Descriptions of the revaluation account, the international investment position and technical solutions are also included.

Quarterly and annual figurs for the period 1994 -1997 are presented in the appendix.

Keywords: Balance of Payments, National Accounts, Exports, Imports, Trade in services, Currrent account balance, Foreigninvestment, International reserves

Reports 98/23 The Norwegian Balance of Payments

Contents

1. Introduction 92. Conceptual Framework 102.1 Basic Concepts and Recording Principles 102.2 Structure and Definitional Relationships 11

3. Balance of Payments and the National Accounts 123.1 Harmonisation of Results 123.2 Integration with National Accounts 123.3 Commodity Flows System 133.4 Balancing Institutional Sector Accounts Flows 14

4. Main Statistical Sources 154.1 International Transactions Reporting System (ITRS) 154.2 External Trade Statistics (ETS) 154.3 Maritime Transport Statistics 164.4 Oil and Gas Activity Statistics 164.5 Banking Statistics 164.6 Other Sources 16

5. Current Account 17

6. Merchandise 186.1 Exports of Crude Oil and Natural Gas 186.2 Exports and Imports of New and Second-hand Ships and Oil Platforms 196.3 Exports and Imports of Goods Related to Petroleum Activities 206.4 Exports and Imports of Other Goods not included in the ETS 216.5 Goods for Processing 216.6 Repairs on Goods 226.7 Non-monetary Gold 226.8 Ci.f - f.o.b Valuation 23

7. Services 247.1 Maritime Transport 257.2 Pipeline Transport 267.3 Oil Drilling Services and Other Services related to Oil Activities 277.4 Other Transportation Services and Related Services 277.4.1 Passenger and Freight Services 287.4.2 Supporting and Auxiliary Services to Transport 297.5 Travel 307.6 Communication Services 317.7 Construction Services 317.8 Insurance Services 327.9 Financial Services 337.10 Computer and Information Services 347.11 Royalties and Licence Fees 347.12 Merchanting and other Trade-related Services 357.13 Operational Leasing 367.14 Other Business Services 377.15 Personal, Cultural and Recreational Services 387.16 Government Services n.i.e 39

8. Income .., 408.1 Compensation of Employees 408.2 Investment Income 41

The Norwegian Balance of Payments Reports 98/23

9. Transfers 439.1 Current Transfers 449.1.1 General Government Transfers 449.1.2 Workers Remittances 449.1.3 Other Transfers 44

10. Capital Account 4510.1 Capital Transfers 45

11. Financial Account . 4 711.1 Direct Investment 4811.2 Portfolio Investment 4911.2.1 Equities 4911.2.2 Bonds and Money Market Instruments 5011.2.3 Financial Derivatives 5111.3 Other Investment 5211.3.1 Trade Credits 5211.3.2 Loans 5311.3.3 Currency and Deposits 5411.3.4 Other Investment Assets and Liabilities 5411.4 Reserve Assets 5511.4.1 Monetary Gold 5611.4.2 Special Drawing Rights (SDRs) and the Reserve Position in the International Monetary Fund 5611.4.3 Foreign Exchange and Other Claims 5611.5 Unallocated Financial Transactions and Statistical Errors 5711.5.1 The Internal Difference in the ITRS 5711.5.2 Statistical Errors related to Exports and Imports 5711.5.3 Statistical Errors related to the use of Government Accounts 5811.5.4 Statistical Errors related to Financial Transactions of the Banking Sector 5811.5.5 Statistical Errors related to Compensation of Employees 5811.5.6 Other .77 59

12. Revaluation

13. The International Investment Position

14. Technical Solutions

References

Appendix

Previously issued on the subject

Recent publications in the series Reports

60

62

63

66

67

71

72


List of tablesTable 6.0.1 Exports and Imports of Merchandise 18Table 6.1.1 Exports of Oil and Gas 18Table 6.2.1 Exports and Imports of Ships and Oil Platforms 19Table 6.3.1 Exports and Imports of Goods Related to Petroleum Activities 20Table 6.4.1 Exports and Imports of Other Goods 21Table 6.6.1 Repairs on Goods 22Table 6.8.1 C.i.f. - f.o.b. Valuation 23Table 7.1.1 Services related to the Shipping Industry 25Table 7.2.1 Services related to Pipeline Transport 26Table 7.3.1 Oil Drilling Services and Other Services related to Oil Activities 27Table 7.4.1 Passenger Services 28Table 7.4.2 Freight Services 28Table 7.4.3 Supporting and Auxiliary Services to Transport 29Table 7.5.1 Travel 30Table 7.6.1 Communication Services 31Table 7.7.1 Construction Services 31Table 7.8.1 Insurance Services 32Table 7.9.1 Financial Services 33Table 7.10.1 Computer and Information Services 34Table 7.11.1 Royalties and Licence Fees 34Table 7.12.1 Trade-related Services 35Table 7.13.1 Operational Leasing 36Table 7.14.1 Other Business Services 37Table 7.15.1 Personal, Cultural and Recreational Services 38Table 7.16.1 Government Services n.i.e 39Table 8.1.1 Compensation of Employees 40Table 8.2.1 Investment Income 41Table 9.1.1 Current Transfers 44Table 10.1.1 Capital Transfers 45Table 11.1.1 Direct Investment 48Table 11.2.1 Portfolio Investment - Equities 49Table 11.2.2 Portfolio Investment - Bonds and Money Market Instruments 50Table 11.2.3 Portfolio Investment- Financial Derivatives 51Table 11.3.1 Other Investment - Trade Credits 52Table 11.3.2 Other Investment - Loans 53Table 11.3.3 Other Investment- Currency and Deposits 54Table 11.3.4 Other Investment 55Table 11.4.1 Reserve Assets 55Table 11.5.1 Unallocated Financial Transactions and Statistical Errors 57Table 11.5.2 Revaluation 60

List of figuresFigure 5.1 Current Account 1978 - 1997 17Figure 7.1 Exports and Imports of Services 1978 -1997 24Figure 8.1 Total Income 1978 -1997 40Figure 9.1 Current and Capital Transfers 1978- 1996 43Figure 11.1 External Financial Transactions 47Figure 14.1 ORACLE table FIIN.UI 63Figure 14.2 ORACLE table FIIN_OMVA 64Figure 14.3 Structure of the system 65


8


1. Introduction

The Balance of Payments (BoP) is a statistical state-ment of Norway's economic transactions with the restof the world, within a specific period of time. The sta-tistics are compiled and published on a monthly basiswith a time lag of about eight weeks. The statementsare published separately in the Weekly and MonthlyStatistical Bulletins, on the Internet and as part of dieNational Accounts (NA) tables in various other publicati-ons. Data are compiled in Norwegian kroner (NOK);transactions denominated in other currencies are conver-ted to NOK.

The Norwegian Balance of Payments is compiled andpresented in accordance with the latest internationallyapproved guidelines. These are specified in "The Bal-ance of Payments Manual, 5th edition" (BPM5), pub-lished by the International Monetary Fund (IMF).Principles and definitions presented there are in fullaccordance with corresponding international rules forthe presentation of the National Accounts, as laid downin the manual "System of National Accounts 1993"(SNA 1993), which is published by a number of inter-national organisations jointly, including the UnitedNations and also the IMF.

EU has prepared its own edition of the NationalAccounts manual, "European System of Accounts 1995"(ESA 1995), which accommodates special conditions inmember countries. Pursuant to the European EconomicArea Agreement, Norway is obligated to adhere to thissystem. The reporting of National Accounts data inaccordance with ESA definitions to EUROSTAT, EU'sstatistical office, has a legal basis, which is not the casefor the Balance of Payments. Here, a "gentleman's ag-reement" has been drawn up between EUROSTAT andeach member country. The aim of these agreements isto enhance the overall presentation of Balance of Pay-ments figures for countries in the EEA and to improvethe quality of the data by harmonising the methods ofcompilation and calculation.

Over the past years new editions of the internationalmanuals have been issued, and Norway has adapted tothese as part of the main revision of the National

Accounts. Compared with earlier, the revised manualsprovide a more complete description of economic rela-tions with other countries and entail a greater degreeof harmonisation between the various systems.

One noticeable result of the main revision of the Nor-wegian National Accounts is the upward adjustment ofservice industries and their share of GDP1 (Gross Do-mestic Product). The new National Accounts figuresreflect the expanding scope of the service economy.International trade in services has exhibited a similargrowth. In the wake of this development, the demandfor improved and more detailed statistics on trade inservices has increased, among other things based onthe requirements of the World Trade Organisation(WTO) in conjunction with the GATS agreement(General Agreement on Trade in Services). The greaterfocus on services has influenced international guideli-nes through the elaboration of clearer definitions andmore detailed classifications.

Similarly, international capital movements have ex-panded markedly in the 1980s and 1990s. One impor-tant reason is the growth in world trade, but the emer-gence of new types of financial instruments, new tech-nology and not least the liberalisation of internationalcapital transactions have been of significance. Thesedevelopments have intensified the requirements forstatistical registration and description of these relati-onships. The new international guidelines for the Ba-lance of Payments also reflect this developmentthrough the treatment of new financial instrumentsand in the classification of different types of investmentin financial assets.

1 For 1990, the share was revised upwards from 53 to 58per cent.


2. Conceptual framework

2.1. Basic Concepts and Recording PrinciplesLike National Accounts, Balance of Payments accountsare constructed around three basic concepts: statisticalunits, economic items and transactions. Briefly, theaccounting systems describe transactions between sta-tistical units in which economic items are provided orreceived in exchange for other economic items. Statis-tical units are institutional units which make economicdecisions on an independent basis and can presentcomplete accounts for their activities. The institutionalunit normally coincides with a body corporate, e.g. alimited liability company or legal person. Economicitems can either be real resources, i.e. goods and servi-ces, or financial items which represent various assetsand liabilities.

The basic criterion for entering a transaction in theBalance of Payments is that it involves an exchangebetween a domestic entity (resident) and a foreignentity (nonresident). Residents are institutional unitsthat engage and intend to continue to engage in eco-nomic activities and transactions within a country'sterritory, with one year or more serving as the conven-tional guideline.

The Norwegian territory includes mainland Norwaytogether with the Norwegian part of the ContinentalShelf, Svalbard and Jan Mayen with Bjørnøya.

In the Balance of Payments, a transaction should inprinciple be allocated to the period in which there is achange of ownership of the economic object. Conventi-onally, it is often said that a change of ownership hastaken place when the parties of the transaction registerit in their books or accounts. In the case of exports andimports of goods, it is in practice when the goods crossthe border, as registered through customs declarationsthat determines the time of recording the transaction.

All transactions shall be valued at market prices. Mar-ket prices are defined as amounts of money that willingbuyers pay to acquire something from willing sellers;the exchanges are made between independent partiesand on the basis of commercial considerations only.Total exports and total imports shall be recorded at

f.o.b. prices2. On a detailed commodity level, c.i.f. prices(cost-insurance-freight) are used for imports, i.e. inclu-ding transport and insurance costs up to the border ofthe importing country. The exchange rate on thetransaction date or the average rate for the shortestperiod applicable shall be used for converting transac-tions in foreign currencies into the national currency.Stocks of assets and liabilities are to be valued at pricesor rates in effect at the time to which the balance sheetrelates.

Income and expenditure are defined in the NationalAccounts and Balance of Payments excluding gains andlosses, irrespective of whether they are realised or un-realised. Such items, however, help to explain totalbalance sheet changes that take place in the course of aperiod and are registered on the account for revaluati-on.

Balance of Payments accounts are based on the rulesfor double entry bookkeeping. All transactions are re-presented by two entries, a credit and debit entry. Mosttransactions are those in which economic items areprovided or received in exchange for other economicitems, entailing that offsetting credit and debit entrieswill normally be registered. For example, exports of agood will be registered in External Trade Statistics andrecorded as a credit entry in the Balance of Paymentsaccounts, whereas the accompanying increase in for-eign assets, e.g. in the form of higher foreign exchangereserves, is registered in Norges Bank's InternationalTransactions Reporting System (ITRS) and recorded asa transaction on the debit side of the Balance of Pay-ments accounts. In other cases when items are givenaway rather than exchanged, or a recording is one-sided for other reasons, there is only one recording inthe data sources. In these cases a counter entry is con-structed, in this example in the form of a transfer sothat the double entry requirement is satisfied.

2 F.o.b. = free on board, i.e. the value when passing theborder of the country of exports.

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2.2. Structure and Definitional RelationshipsThe Balance of Payments is an integrated part of theNational Accounts and is constructed as a mirror imageof the institutional sector "Rest of the World" in theNational Accounts. In the Balance of Payments,transactions are seen from Norway's point of view,while in the institutional sector accounts they will beseen from the perspective of the rest of the world. Asurplus on Norway's current account will in the Natio-nal Accounts appear as a deficit for the sector "Rest ofthe World".

The Balance of Payments consists of two main parts: acurrent account, which shows current transactions withthe rest of the world, and a capital and financialaccount, which records investment transactions in theform of purchases and sales of financial instruments.

The current account comprises, first, exports and im-ports of goods and services, with the balance of goodsand services as a balance item. In addition, data areprovided for compensation of employees, investmentincome and expenditure as well as current transfers toand from the rest of the world. The balance for thiscomponent is net income and current transfers. Thetotal balance of the current account is the sum of thebalances of these two components.

The capital and financial account shows how transacti-ons recorded in the current account result in changesin foreign assets and liabilities, and in addition topurchases and sales of financial instruments includescapital transfers. This entails that the balance on thecurrent account must be adjusted for net capital trans-fers in order to arrive at net lending.

The definitional relationship between the currentaccount and the financial account is that a currentaccount surplus, adjusted for net capital transfers, in-creases net foreign assets (or reduces net liabilities),while a deficit on the current account will reduce netassets (or increase net liabilities).

The financial account also includes transactions that donot have a counter entry in the current account. Oneexample would be a resident who uses funds in a for-eign bank account to repay a loan raised abroad.

Total asset transactions less total liability transactionsresult in net lending. By adjusting net lending for valu-ation changes and other balance sheet changes notcaused by transactions3, we arrive at changes in Nor-way's net foreign assets/liabilities.

Current account:

Exports

- Imports

= Balance of goods and services (I)

Compensation of employees, investment income andcurrent transfers from abroad

- Compensation of employees, investment income andcurrent transfers to abroad

= Balance of income and current transfers (II)

(I) + (II)

= Current account balance

Capital account:

Current account balance

Capital transfers from abroad

- Capital transfers to abroad

= Net lending (IV)

Financial account:

Net acquisitions of financial assets

- Net acquisitions of financial liabilities

= Net lending (IV)

Net lending (IV)

+ Change in net financial assets not due totransactions

= Change in net financial assets (V)

3 Certain types of debt forgiveness and a change in astatistical unit's sectoral classification are examples ofbalance sheet changes that are not based on transac-tions.

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3. Balance of Payments and the NationalAccounts

Statistics Norway is responsible for producing andpublishing both National Accounts (NA) and Balance ofPayments (BoP) statistics, reflecting the view that BoPin principle is the mirror of the Rest of the Worldaccount in the National Accounts statistics.

Until now, no separate publication has existed for theNorwegian Balance of Payments statistics. The tableswith figures for transactions with nonresidents, havebeen presented as part of the Norwegian NationalAccounts publications. Descriptions of the Balance ofPayments compilation methods have been included inthe National Accounts methodology publications.

3.1. Harmonisation of ResultsIntegration between the National Accounts and the Ba-lance of Payments starts with the idea of presenting thesame figures for important macro-economic variables inboth statistical systems, e.g. the current account balanceor exports and imports of goods and services. In the past,harmonisation between the two systems was achieved inStatistics Norway in the sense that figures for the corre-sponding items in the two systems were kept identical.Also, for all items on the current account, the same esti-mation procedures were used for both BoP and NA pur-poses.

The results were initially published in the monthly BoPand later in quarterly and annual NA. However, as diffe-rent accounting schemes and coding systems were usedin the two systems, an encoding from BoP to the NA wasnecessary. As for the capital transactions with the rest ofthe world, the BoP data were adopted as part of the NAtables, as the sole Financial Account Statement compiledfor institutional sectors.

3.2. Integration with National AccountsIn the early 1990's, Statistics Norway initiated a projectto implement the revised international guidelines onNational Accounts and Balance of Payments statistics(SNA93, BPM5), as part of a main revision of the Nor-wegian National Accounts statistics. It was at the sametime decided to further strengthen the integration ofthe two statistical systems. Also the need for separate

Norwegian Balance of Payments publication and met-hodology documentation was recognised.

Technically speaking, the same IT system is now used forthe current production of both BoP data and NA data(see chapter 14). By introducing a joint data structure,classifications and coding systems on a detailed level,and using the same set of estimation procedures andrules for the calculation of values of corresponding vari-ables in the two statistical systems, data for both BoPtables and NA tables are extracted from one joint database. In this way, a complete integration has been re-ached, a step further from the previous situation ofharmonisation of results, and much in the spirit of therevised international guidelines of BPM5 and SNA93.

An important incentive behind integration is to be ableto make use of all relevant information from the otherinstitutional sectors, and thus to ensure consistencybetween the Rest of the world account, and thus BoP,and the other sectors in the institutional sector accounts.This opens for the possibility to make systematic evalua-tion and plausibility checks on the BoP data within aconsistent macroeconomic accounting framework.

The integration of exports and imports items of the BoPwith the corresponding items of the National Accounts,is made possible through the detailed supply and usetables for products combined with a detailed commodi-ty flow system. For other items on the current account,a separate but quite similar balancing system is used.

The Norwegian National Accounts traditionally placedparticular emphasis on the description of the real flowsof the economy, represented by the annual integration ofdetailed supply and use tables, while the income flows,and consequently institutional sector accounts, have hada less prominent position in the system. This has, howe-ver, changed with the new system.

Now, two equally important databases have been intro-duced. One database contains information on institutio-nal sectors including Rest of the World, NA-INS(National Accounts Institutional Sectors). The secondcomprises the supply and use tables, NA-REA (National

12


Accounts Real Economy Accounts). The two databasesare kept within the same data system, so that transmissi-on of data from one to the other is uncomplicated.

3.3 Commodity Flows SystemThe Norwegian National Accounts since the very be-ginning in the early 1950s, have been based on thecommodity flow approach. This approach, or techni-que, has as a condition the existence of detailed supplyand use tables for products. These are tables that mapthe supply of the different goods and services fromdomestic industries or imports, and the final and in-termediate domestic use or exports of the same goodsand services. The supply and use tables are fundamen-tal tools in compiling national accounts aggregatesrelated to production and value added by industries, aswell as final uses, i.e. consumption expenditures, capi-tal formation and exports, and imports. In addition, thesupply and use tables constitute the framework forestimation of constant price values of each single pro-duct or commodity flow. The constant price values arein turn used to calculate growth rates from one periodto another of the various supply and use components ofthe National Accounts. The supply and use tables arealso the starting point for constructing input-outputtables which are used for purposes of economic analy-sis and projections.

There are (at least) two fundamental conditions of thesystem, expressed in equations (1) and (2):

(1)where Y

MVCKLX

= V + C + K + L + X,outputimportsintermediate consumptionfinal consumptiongross fixed capital formationchanges in inventoriesexports

(1) states that total supply of a particular product mustequal total use of the same product. The identity isused to balance supply and use of each single productat both current and constant prices. For goods, normal-ly the changes in inventories are a residual in the ba-lancing procedure. The figures for changes in invento-ries are, however, evaluated and reconciliation can bemade by adjusting one or several of the other supply oruse components. For services, where inventories, andthus changes in inventories, are normally assumed tobe zero, in some cases another supply or use categoryis derived residually, or as in other cases, the reconcili-ation of the supply and use side implies adjustments ofseveral components.

In principle, this opens for the possibility of calculatingexport or import flows of services indirectly, providedthat domestic supply and use of services are known. Inpractice, however, for most services categories, inter-

national trade figures are compiled either on basis ofITRS data or through industry surveys.

At the most detailed level, the product classification inthe Norwegian National Accounts comprises in totalabout 1250 products. Of these, 300 are services ofwhich about 40 and 35 are exported and imported,respectively.

As stated above, equation (1) applies to data in bothcurrent and constant prices, implying the followingcondition:

(2) p . q = v

where p = change in price for a single product orcommodity from one period to another

q = change in volume of the same productv = change in value of the same product

The estimated volume change for each product orcommodity flow can be evaluated against alternativeinformation in form of volume indicators, as a plausi-bility test of the results. When the development in vo-lume terms estimated in the National Accounts is in-consistent with alternative volume indicators or doesnot fit in with the overall picture presented by the Na-tional Accounts, corrections can be done on the currentvalue of the analysed item. Also the price informationused for deflation in the system can be evaluated.

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3.4. Balancing Institutional Sector AccountsFlows

The NA-INS database comprises three sub-databases,including one for income flows (current account items)

and one for financial investments flows (capital andfinancial accounts items) .The last one contains balancesheets data for institutional sectors.

The data on income flows are given in the following format or structure:

Receivingsector

Receivingindustry

Incomeitem

Product Payingsector

Payingindustry

Source

One fundamental aspect is that one classification orcoding system is used for each characteristic for bothNA and BoP purposes. The institutional sector classifi-cation is adopted from the SNA93, the industry classifi-cation is based on the European NACE revl-classification. The classification for income items isadopted from SNA93/BPM5, and the product classifi-cation used is based on CPA, the European variant ofthe United Nation's product classification CPC. Specialclassifications for transaction type, purpose, sourcesetc. are developed in order to carry out various calcu-lations to report data focusing on different dimensionsof the accounts.

The format or data structure is useful for several pur-poses. Firstly, all relevant information for the construc-tion of both the current account of the BoP and thecorresponding Rest of the World Account in the NA, iscompiled and stored within one database. Tables forpublication of both statistics can thus be extracted fromone database.

Secondly, the structure makes it possible to establish adirect link between the BoP exports and imports itemsand the detailed NA product classification, a strictcondition for the use of the commodity flow approachin BoP context.

Lastly, the format is chosen with the purpose of kee-ping and exploiting all available sectorial information,including information on counterpart sectors. The va-lue reported by sector 1 on transactions with sector 2,can be assessed against the value of the same transac-

tions reported by sector 2. This means that in theorythe database contains two observations of each singletransaction. In practice, only some types of transactionswill include specification of counterpart sectors (e.g.bank deposits).

In principle, balancing the income flows will take placein three steps. In the first step, input data for each in-stitutional sector are transferred into the database andtransformed according to the SNA93/BPM5 definitionsand principles. For each institutional sector an internalbalancing procedure is followed, including derivationof the balancing items of the accounts.

The second step is to choose between two differentvalues for one set of transaction, as reported by thetwo involved sectors. In some cases, some kind of sta-tistical mean value may be preferred. This step reducesthe database to only one single value for each transac-tion between specific sectors.

The third step of the balancing procedure is based onthe following basic identity:

(3) Total income = Total outlay

Income or resources for one sector must be outlay oruses for another sector4. The balancing proceduresmake no use of a separate reconciliation sector, imply-ing that imbalances will be removed by adjusting thefigures for one or several other sectors. In practice, formany items the sector of private non-financial corpora-tions will be adjusted.

The data on capital and financial transactions are given the following format:

Debtor Debtor Financial Revaluation Financial Creditor Creditorsector industry instrument category purpose sector

Sourceindustry

As Financial Account transactions are available for theinstitutional sector Rest of the World only, the balan-cing procedure is defined to internal balancing of thatsector including specification of domestic counterpartsectors.

4 Disregarding transactions between units of the same sector.

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4. Main Statistical Sources

The main sources for the compilation of the Balance ofPayments are the International Transactions ReportingSystem (ITRS) and Banking Statistics (BS) produced byNorges Bank (Central Bank of Norway), Statistics Nor-way's External Trade Statistics for goods (ETS), Mari-time Transport Statistics, Oil and Gas Activity Statisticsand Government Accounts.

4.1. International Transactions ReportingSystem (ITRS)

Norges Bank's foreign exchange regulations stipulatethat foreign exchange banks are required to report toNorges Bank payments between residents and nonresi-dents. Foreign exchange banks submit reports on theirown payments and payments on behalf of their custo-mers. Approximately 125 foreign exchange banks re--port electronically on a daily basis to Norges Bank. Aresident who opens an account abroad or establishanother arrangement for settlements directly with anonresident without using a resident foreign exchangebank is obligated to notify Norges Bank. This entailsthat the resident is obligated to report all transactionsthrough such accounts or settlements arrangements toNorges Bank.

Information is collected on payer and payee, as well ascountry, currency denomination, amount and the natu-re of transaction. The reporting entities classify thepayments in 30-40 payment types, and Norges Bankundertakes a further breakdown into about 300 items(including sector and industry breakdown).

The ITRS can be characterised as a closed reportingsystem. This implies that all gross transactions are re-ported together with the stock value of the correspon-ding financial asset or liability, and the transactions arereconciled with the stock values. The stock values arethe basis for estimation of revaluations due to exchan-ge rate fluctuations.

The aim of the reporting is to collect information onpayments between residents and nonresident units inboth NOK and foreign currency. However, to maintainthe closed system, also interbank transactions in for-eign currency, payments between resident units in

foreign currency and payments between nonresidentsthrough Norwegian banks are included. These transac-tions are necessary to reconcile transactions and chan-ges in stock values on the accounts reported, but are tobe excluded from the Balance of Payments.

Confusion of residency (resident or nonresident) in thereports will imply that the closed system does not ba-lance, which will consequently cause errors and omis-sions in the Balance of Payments statistics.

Norges Bank reports the data electronically to StatisticsNorway, where they are recorded and included in thesystem for calculating Balance of Payments.

4.2. External Trade Statistics (ETS)Statistics on external trade in goods are based on theadministrative returns collected by the customs autho-rities. When goods are imported or exported, the im-port and export declarations are registered electronical-ly and the information is submitted to Statistics Nor-way. Information on imports and exports of specialgoods (e.g. ships and electricity) are based on specialreports. Also excluded from the ETS are exports andimports of goods and services delivered directly to andfrom abroad to the petroleum installations on the Nor-wegian Continental Shelf. For these transactions esti-mates are made for Balance of Payments and NationalAccounts purposes, based on statistical surveys of pe-troleum companies. The transactions are shown asseparate items in the Balance of Payments and NationalAccounts exports and imports tables.

The coverage of the ETS is in accordance with the re-commendations of the United Nations StatisticalCommission and relates to the General Trade principle.Imports thus comprise commodities cleared on arrivaland commodities placed in customs bonded warehou-ses. Accordingly, exports comprise all merchandiseexported from Norway, including re-exports of impor-ted goods, whether or not the exports and re-exportsare from customs bonded warehouses. It is assumedthat transit trade is of minor importance to the Nor-wegian economy. Only recently the first two free

15


customs trade zones were established (Fredrikstad andMo-i-Rana).

4.3. Maritime Transport StatisticsThe Maritime Transport Statistics is an annual statisticscompiled by Statistics Norway for operating incomeand expenditure, which in principle cover all vessels inocean transport operated by a Norwegian shippingcompany independent of the country of registration.The statistics are based on reports from shipping com-panies for each ship more than 250 gross dwt, inclu-ding chartered vessels with foreign ownership. Thequestionnaire used in the survey is constructed also forNational Accounts and Balance of Payments purposes.

4.4. Oil and Gas Activity StatisticsStatistics on oil and gas activities comprise quarterlydata on fixed capital formation including informationon accrued costs for exploration, field development,fields in operation and onshore activities. The statisticsspecify acquisitions which are imported directly fromabroad to the Norwegian Continental Shelf and whichare therefore not captured by the Statistics on ExternalTrade in goods. Detailed information on operatingexpenditure with figures for direct imports is collectedon an annual basis. Both the quarterly and the annualstatistics cover oil and gas extraction industries andpipeline transport enterprises. Both are census-typesources, they cover about 230 units in the quarterlystatistics and about 170 units in the annual statistics.The population is identified by Statistics Norway'sBusiness register and a register of licensed Norwegianestablishments, whether their activity are based off-shore (Norwegian Continental Shelf) or on-shore(Mainland Norway).

4.5. Banking StatisticsMonthly statistics for banks and other financial corpo-rations show balance sheet figures for financial assetsand liabilities, and thus balance sheet changes in fi-nancial assets and liabilities by financial instrumentand institutional sector. The main institutional sectorsare "general government", "financial corporations","non-financial corporations", "households", and "Restof the World". Based on the balance sheet changes vis-a-vis rest of the world, the banks' transactions in fi-nancial assets and liabilities are calculated. The statis-tics cover all banks and financial institutions, includingthe Norwegian Post Bank, state lending institutions aswell as Norges Bank. Norges Bank is responsible forcollecting the statistics.

4.6. Other SourcesFor exports and imports of aviation, postal and tele-communications services, figures are computed by theDivision for National Accounts based on informationobtained directly from key operators. Figures from theGovernment Accounts are used for general governmenttransfers and for some other information.

16


5. Current Account

The current account covers all transactions (other thanthose in financial items and capital transfers) that in-volve economic values and occur between resident andnonresident entities. Offsets to current economic valuesprovided or acquired without a quid pro quo are alsoincluded. The major components are goods and servi-ces, income and current transfers (BPM5 §152). Theseare in concordance with the coverage of the externalaccounts of goods and services, primary incomes andcurrent transfers in the SNA (System of NationalAccounts). Because the net balance on the currentaccount constitutes an integral part of the measure ofan economy's saving and spending behaviour it can beviewed as one meaningful indicator of an economy'ssaving. To the extent that national saving exceeds or

falls short of net capital formation, the net balance oncurrent transactions, on net capital transfers and onacquisition / disposal of non-produced non-financialassets represents the amount of an economy's net for-eign investment or net lending / borrowing vis-a-visthe rest of the world (BPM5 §182).

The description of the items covered by the currentaccount follows to a large extent the BPM5 layout,however, items important to the Norwegian economyare emphasised and described in separate sections.Exports or imports of a product may appear in morethan one table due to the emphasis put on illustratingboth the IMF structure and the composition of theNorwegian Balance of Payments' tables.

Figure 5.1 Current Account 1978 -1997

o

-20000 -

-40000

- Balance of goods andsevices

Balance of incomeand current transfers

-Current accountbalance

1978 1980 1982 1984 1986 1988 1990 1992 1994 1996

Year

17


6. Merchandise

Goods, in the BPM5, cover general merchandise; goodsfor processing; repairs of goods; goods procured inports by carriers and non-monetary gold. General mer-chandise is defined for the Balance of Payments tocover (with a few specified exceptions) all movable

goods for which there is a change of ownership, actualor imputed, between a resident and a nonresident.Exports and imports of goods are recorded at marketvalues at points of uniform valuation, that is, thecustoms frontiers of exporting economies.

Table 6.0.1. Exports and Imports of Merchandise

Mill. NOK

Exports of other merchandise* included in ETS

Imports of other merchandise* included in ETS

1992

107315

153685

1993

110570

157005

1994

127290

181353

1995

142014

199656

1996

154358

219617

1997

167840

235092* Exports of oil and gas, and exports and imports of ships and oil platforms not included

The main source for exports and imports of merchandi-se is the External Trade Statistics (ETS) publishedmonthly by Statistics Norway. The ETS is based oninformation collected by the customs authorities fromdeclarations supplied by exporters and importers ofgoods.

In the Norwegian Balance of Payments, no adjustment ispresently made to the ETS to account for goods thatcross the border without a change of ownership. Forinternational reporting purposes, imports c.Lf. are adjus-ted to f.o.b. valuation on a global basis. This estimationis based partly on data from the annual ocean transport

6.1. Exports of Crude Oil and Natural Gas

Table 6.1.1. Exports of Oil and Gas

survey of Statistics Norway and partly on the ITRS. Inthe national publications imports are shown c.i.f.

For aircraft the register principle is still employed in theNorwegian External Trade Statistics. In the Balance ofPayments, however, a correction item is introduced forexports and imports of aeroplanes belonging to Scandi-navian Airline System (SAS) (see chapter 7.4).

The ETS is, except for some important items, includedat an aggregated level in the Balance of Payments. TheETS is, however, incorporated on a detailed level in theNational Accounts supply and use tables.

Mill. NOK

Exports of oil and gasCrude oil

Natural gas, liq.

Productnumber

111010

111020

1992

9715782658

14499

1993

10406889428

14640

1994

10643892119

14321

1995

11322998010

15221

1996

156689135729

20959

1997

163498136111

27562

Exports of crude oil and natural gas represent thesingle most important item in the current account. In1996, exports of oil and gas amounted to almost 37percent of total exports.

The source used for determining the export value is theETS. Crude oil is exported from the offshore petroleumfields either through pipelines or by ships, while natu-

ral gas is transported by pipelines. The Norwegian Pe-troleum Directorate (Oljedirektoratet) reports monthlyto Statistics Norway the quantities of oil and gas expor-ted from the petroleum fields in the North Sea. Theexports and imports of crude oil include the oil trans-ported by pipeline to Teeside in the U.K. and re-imported to Norway by ships, even though no changeof ownership has taken place.

18


The value of exports of oil and gas is calculated partlyby collecting information on prices directly from oilcompanies, and partly by using administratively setnorm prices. The norm prices are estimated ex post andreflect observed market prices. For crude oil exported

6.2. Exports and Imports of New and Second-hand Ships and Oil Platforms

Table 6.2.1. Exports and Imports of Ships and Oil Platforms

by ships the point of valuation is the production site(petroleum field), and for exports of crude oil andnatural gas through pipelines the point of exit from theNorwegian Continental Shelf.

Mill. NOK

Exports of new and second-hand ships and oil platformsTankersVessels for transport of goodsTugs and pusher craftDredges; light-vessels, fire-floats, floating cranes,warship; other vesselsModules for oil platformsShips, second-handFishing boats, second-handOil production platforms, drilling rigsand modules, second hand

Imports of new and second-hand ships and oil platformsTankersVessels for transport of goodsFishing vessels, factory vessels, newTugs and pusher craftDredges; light-vessels, fire-floats, floating cranes,warship; other vesselsVessels for transport of goods, second-handFishing boats, second-handOil drilling rigsModules for oil platformsOil platforms, second-hand

Productnumber

351122351124351132351133

351142009411009412009380

351122351124351131351132351133

351924351931351141351142351941

1992

1366712465441

8506

506232

1840

726226302658

01

309

1132690

4630

1993

11730493

18790

794

8106459270

1025

128567313

995111

0271

2051119995356645

1994

10476638

2861124805

115223

24790

824520681950

01

194

37106952

2010

1995

10351860

2968159151

635400391359

667612661761

35

168

2872242176183

0

1996

8910909

28572

489

593472293829

99730

23381665

168

3540198

3366282

0

1997

10564246

4268506247

2313915211940

1628219433206

0237527

7609519

2090151

0

Exports and imports of ships and oil platforms are ex-tracted from the ETS. The figures in ETS arebased on special reports from shipping and drillingcompanies. A distinction is made between new andsecond-hand equipment. The rationale behind thisdistinction is the integration with the NationalAccounts, where deflation of the current value of newand second-hand equipment requires different priceindices.

Prior to 1988 the ETS employed the register or flagprinciple in recording the ship transactions, implyingthat ships should be recorded as exports or importswhen being deleted from or written into the domesticregister, respectively. In earlier periods the flag criterionseemed quite acceptable, as the residency of the shipowner, the operator and the country of registration wereone and the same. By mid-1980s, this principle of recor-ding had clearly become unsatisfactory to Norway.

Firstly, from 1985 the authorities accepted direct Nor-wegian ownership of ships registered in other countries.The implication was an acceleration in flagging out, atthe time recorded as exports of ships.

Secondly, a new Norwegian International Shipregister(NIS) was established in 1987, allowing 100 per centdirect foreign ownership. It was found unacceptable forstatistical purposes to treat these ships as part of Nor-wegian fixed capital stock and hence record them asimports when written into the NIS. Thus from 1988 theowner criterion was introduced in place of the register orflag criterion, i.e. the nationality of the registered ownerdecides whether the ship belong to the Norwegian capi-tal stock or not.

In the National Accounts, capital formation of plat-forms for petroleum production is recorded on a conti-nuous basis, wi± a corresponding effect on importsrelated to investments in petroleum fields. Productionplatforms constructed abroad are now recorded asimports as the work progresses, and not as previouslyat the time they are towed to the offshore field. Thishas resulted in a different time profile of such invest-ment, with a corresponding effect on imports for oilactivities. Viewed over a longer period of time, howe-ver, this type of imports has not changed. One result ofrecording capital formation on a continuous basis isthat the imports of parts to oil platforms from the ETS

19


may in some cases be replaced with data from the Oiland Gas Activity Statistics.

6.3. Exports and Imports of Goods Related toPetroleum Activities

Table 6.3.1. Exports and Imports of Goods Related to Petroleum Activities

Mill. NOK Product 1992 1993number

1994 1995 1996 1997

Exports of goods related to petroleum activitiesOil production platforms, drilling rigs and modules. Adjustmentfor foreign ownership shares

Oil exploration and drilling. Adjustment for foreign ownershipshares

Imports of goods related to petroleum activitiesAdjustment for foreign ownership shares of oil and gas fields onthe Continental Shelf, expenditure on fixed assets

Imports of unspecified goods for oil and gas production, opera-ting expenditure and expenditure on fixed assets

Imports of unspecified goods for oil and gas pipeline transport,operating expenditure and expenditure on fixed assets

Gas oils

160 107009385 47 38

009705 113 69

3544 5978005046 4 3

005060 2297 5008

005062 1243 967

232011 110 100

121 228 253 19760 132 127 65

61 96 126 132

4233 6237 7683 97291 3 27 38

3884 5256 5175 6448

348 978 2481 3243

120 120 96 100

Included in these items are exports and imports ofgoods related to the petroleum activities on the Nor-wegian Continental Shelf, which are not recorded inthe ETS. In addition, correction items related to terri-torial borderline fields have been introduced. Thesource of information is the quarterly and annual sta-tistics on oil and gas activity published by StatisticsNorway.

The exports figures represent an adjustment for the UKparts of petroleum fields crossing the borderlinebetween Norway and the UK. When developed by aNorwegian operator, the expenditures on capital for-mation of the field are refunded by the UK owneraccording to his share. In the National Accounts thesepayments are recorded as sale of fixed capital equip-ment to abroad, and is therefore included in the Balan-

ce of Payments as exports. Similarly, the UK share ofoperating costs is refunded and hence recorded as ex-ports.

Imports of goods related to the petroleum activitiescover four different components. One represents acorrection for Norwegian owned parts of petroleumfields stretching across the border between Norway andUK, which are operated by UK enterprises (see above).Two components are unspecified imports of goodsdirectly from abroad to the Norwegian ContinentalShelf for use in exploration and pipeline transport ac-tivities. The fourth is deliveries of fuel from abroaddirectly to the installations on the Continental Shelf.These imports are calculated by use of estimated im-port shares, based on information from the Oil and GasActivity Statistics.

20


6.4. Exports and Imports of Other Goods notincluded in the ETS

Table 6.4.1. Exports and Imports of Other Goods

Mill. NOK

Exports of other goods not included in the ETSSalmon and trout, farm bredMeat of bovine animals, fresh, chilled or frozenOther prepared and preserved meat, meat offal or blood;extracts and juices of meat, fish and aquatic invertebratesFish, fish fillets, other fish meat and fish livers and roes,frozenFish, otherwise prepared or preserved; caviarProcessed and preserved potatoesVegetables, frozenJams, fruit jellies and fruit or nut puree and pastesButter and dairy spreadsIce cream and other edible iceCrispbread, rusks, toasted bread and similar toasted pro-ductsOther bread and other bakers' waresCoffee, decaffeinated or roastedMiscellaneous food products n.e.c.Fuel oilsGas oilsKerosene type jet fuel

Imports of other goods not included in the ETSFuel oilsGas oils, shippingGas oils, oil activityOther middle distillatesKerosene type jet fuel

Productnumber

050012151111151312

152012

152014153110153311153322155130155210158211

158213158611158914232008232011232004

232008232011232011232014232004

1992

9644422

111

15

227

157777

154444

185185227

400318641634110115280

1993

920392099

13

207

137777

133939

164164262

383915271765

100111336

1994

12345626

136

20

26102010101010

205656

229229310

385415491791

120113281

1995

14107135

178

24

35132413131313

247171

292292228

433817522026

120128312

1996

14957638

190.

26

38132613131313

267676

320320218

523921352472

96201335

1997

14397537

189

26

37122612121212

267575

316316181

632025622972

100268418

The export figures above cover goods ( e.g. fuels, pro-visions, stores and supplies) procured in ports by non-resident carriers in Norway. Excluded are related servi-ces provided (e.g. towing, storage, maintenance etc.),which are recorded under transportation and relatedservices. The ITRS reports three aggregates, one forexpenditure by foreign ships, one for expendituresrelated to foreign platforms and one for expendituresmade by foreign aeroplanes. Due to the integrationwith the National Accounts, these aggregates are spe-cified on various products using a distributional keywhich to some extent is determined when the supplyand use of products are balanced in the NationalAccounts (see chapter 3.3).

The imports of goods cover imports of fuel to the ship-ping industry, oil and gas industry and to the air trans-port industry.

6.5. Goods for ProcessingGoods for processing cover, according to the BPM5(§197 -§198), goods that are exported or imported forprocessing and comprise two transactions; exports (orimports) of a good, before processed, and the re-import(or re-export) of a good after being processed. Themanual recommends that goods for processing shouldbe recorded on a gross basis and specified separately.Goods for processing are included in the ETS on a grossbasis, however the quality of the data is questionableand is therefore not specified in the Balance of Pay-ments, but are included in the total figure for exportsand imports of goods.

21


6.6. Repairs on Goods

Table 6.6.1. Repairs on Goods

Mill. NOK

Repairs, exportsRepair of electrical motors, electrical apparatusRepair services of oil platformsReconstruction of oil platformsRepair services of shipsReconstruction of ships (investment)Repair services and reconditioning of aircraftPayments for contract work in mining and manufactu-ring (excl. printing and shipbuilding)

Repairs, importsRepair of electrical motors, electrical apparatusRepair services of oil platformsReconstruction of oil platformsRepair services of shipsReconstruction of ships (investment)Payments for contract work in mining and manufactu-ring (excl. printing and shipbuilding)

Productnumber

311092351143351144351191351194353091

000371

311092351143351144351191351194

000371

1992

3781644

31754384

13

614481

16450

3055685

2109

1993

64956

1132

16020

298

0

610271

223104

3165231

2308

1994

5442560

1218109131

0

375981

246101

3183148

0

1995

7757249

18411526

329

0

435985

15548

3559512

0

1996

40941

764

11128

158

0

447563

1593

3684566

0

1997

5928635

078

30489

0

586095

288373

4406698

0

Repairs on goods cover repair activity that involveswork performed by residents on moveable goodsowned by nonresident and vice versa (BPM5 §200).The BPM5 recommends that repairs on goods shouldbe recorded separately under goods on a net basis, i.e.the value recorded should reflect the value of the re-pairs rather than the gross value of the goods beforeand after repairs.

On the export side, repairs of ships, aircraft andmachines are recorded. The sources are the ITRS andthe accounts from SAS (Scandinavian Airline System).On the debit side repairs of ships, platforms andmachines are recorded. The sources are the MaritimeTransport Statistics and the ITRS. Maintenance oftransport equipment is not recorded separately in theNorwegian Balance of Payments. Some maintenanceexpenditures are probably included in the operatingexpenditure abroad for shipping, oil and gas activity,and air transport. Due to the integration of the Balanceof Payments in the National Accounts, a distinction ismade between repairs recorded as gross capital forma-tion and repairs recorded as intermediate consumption.

Repairs are in the Norwegian Balance of Payments andNational Accounts classified as services, however, re-pairs are included in the category for goods in the re-porting to international organisations (IMF, OECD,Eurostat).

6.7. Non-monetary GoldThe BPM5 recommends that non-monetary gold shouldbe separately identified from general merchandise. Therationale behind this is that transactions in non-monetary gold are often motivated by considerationsother than the use of gold as part of the process ofproduction and consumption. Including these transac-tions in merchandise could give a misleading impressi-on of an economy's production (in the case of exports)or consumption (in the case of imports).

Transactions in non-monetary gold are not consideredimportant in the Norwegian Balance of Payments orNational Accounts and are therefore not identifiedseparately, but are included in the exports and importsof merchandise from the External Trade Statistics.

22


6.8. Ci.f - f .o.b Valuation

Table 6.8.1. Ci.f. - f.o.b. Valuation

Mill. NOK Productnumber

1992 1993 1994 1995 1996 1997

Imports of freight and insurance servicesFreight transportation by railwayFreight transportation by other land transportation servicesOcean water freight transportation servicesScheduled transportation services of other freight by airOther non-life insurance services

Exports (imports freights by Norwegian operators)Ocean water freight transportation services

601021

602410

611022621022

660319

611022

48733743843022

160933

858858

56483264513720199952

720720

6930234513

49101771096

840840

74531895415326

1891208

894894

73601865245142

1831325

894894

60461396353451

3991422

894894

In the Norwegian Balance of Payments publications,imports of goods are valued ci.f. (i.e. including cost,insurance and freight) and the exports of goods arevalued f.o.b. (i.e. free on board). The IMF manual re-commends that all exports and imports of goods shouldbe valued f.o.b. at the customs border of the exportingeconomy. Consequently, adjustments for valuing theimport f.o.b. are done for international reporting pur-poses. Two types of adjustments are carried out.

The first adjustment refers to the case where nonresi-dent operators produce the services (i.e. transportationand insurance). The import value of goods are reducedby these service items, which are recorded in the ap-propriate imports of services items. This adjustmentleads to a redistribution from imports of goods to im-ports of services and the total import figure is not affec-ted.

The second adjustment relates to the case where resi-dent operators produce the services. Initially, the servi-ces are domestically produced, then exported (as servi-ces) before being re-imported as part of the ci.f.-valueof imports of goods. When applying the imports f.o.b.

principle, the services are recorded as transactionsbetween resident units. In this case, the result of theadjustment is that both imports of goods and exports ofservices are reduced with the same amount. However,the overall trade balance is not affected.

The sources used for conducting these adjustments arethe ITRS from Norges Bank and the Maritime Trans-port Statistics from Statistics Norway. Norges Bankreports payments for freight transport by type of e-quipment, but does not distinguish whether this con-cern payments for freight of exported goods or pay-ments for freight of imported goods. A distributionalkey is estimated in Statistics Norway and used to dis-perse the total on freight of goods imported to Norwayand freight of goods exported. The estimated figure forfreights of imported goods is then subtracted fromimports ci.f. Insurance on imports of goods is estima-ted as 0,6 per cent of total imports of goods as recor-ded by the ETS. The adjustment for freights on importsof goods produced by Norwegian transporters, arebased on information from the Maritime TransportStatistics.

23


7. Services

Figure 7.1. Exports and Imports of Services 1978 -1997

O

i

LZ.V\J\JV -

100000 -

80000 -

60000 -

40000 -

20000 -

0-

j

• • > • • ' i I ' i I 1

- Export of services

- Import of services

1978 1980 1982 1984 1986 1988 1990 1992 1994 1996Year

The essential difference between goods and services isthat the production of a service is generally linked toan arrangement between a particular producer and aparticular consumer, whereas this is generally not thecase with goods.

The time at which the exports or imports of a serviceshould be recorded is, according to the SNA §14.70,

the time at which it is rendered (delivered or received),which mostly coincides with the time at which the ser-vice is produced (and consumed). In some instances(e.g. freight and insurance, port services etc.), as maybe the case with trade in goods, there may be pre-payments or post-payments for such services.

24


7.1. Maritime transport

Table 7.1.1. Services related to the Shipping Industry

Mill. NOK

Exports of services from the shipping industryExports of sea transportation servicesOcean transport, other passenger transport and transportati-on by ferriesOcean water freight transportation servicesSupply services n.e.c. for oil activityRental services of vessels with crew, ocean water transportOcean water freight transportation services, imports of goodsExports of other services from the shipping industryRenting services of ships and boats (without crew)Other engineering services

Imports of services and fuels to the shipping industryServicesCurrent expenditure abroad for shippingRepair services of shipsReconstruction of ships (investment)Other non-life insurance servicesFuelFuel oilsGas oilsMiddle distillates

Productnumber

611014

611022611029611033611022

712210742040

005053351191351194660319

232008232011232014

1992

4290542090

1258

3050310588413

858815677138

2603222419183763055

685303

361318641634

115

1993

4686646068

1156

33132865

10195720798615183

2551822115182903165

231429

340315271765111

1994

4527844517

992

32404910

9371840761581180

2533921886180273183

148528

345315491791

113

1995

4581745204

1234

31769833

10474894613426187

2722223316189013559

512344

390617522026

128

1996

4733746641

1234

32681833*

10999894696426270

2936724559199573684

566352

480821352472

201

1997

5329152787

1234

36654833

13172894504300204

3540729605240854406

698416

580225622972

268

Exports and imports of services related to the shippingindustry are the most important items in the servicescategory of the Norwegian BOP. In 1997, more than 50per cent of total exports of services were related toshipping.

The sources used for the estimations in the Balance ofPayments are the annual Maritime Transport Statisticscompiled by Statistics Norway and the ITRS from Nor-ges Bank. The latter source has less detailed informati-on, but is available earlier; it is therefore used as thebasis for the preliminary Balance of Payments statistics.The Maritime Transport Statistics are compiled by Sta-tistics Norway on an annual basis. These statistics cover,in principle, all Norwegian operated vessels in foreign-going trade and are based on reports from residentshipping companies for each ship of 250 gross tons(GRT) or more in their operation. Also included in thestatistics is information on foreign owned or registeredships operated by Norwegian companies.

The reports provide information on type of earnings,type of vessel, whether the service is provided to nonre-sidents and the size of vessel. 13 types of vessel are spe-cified, among them three types of tankers, bulk carriers,ro-ro vessels, passenger vessels, liners etc. The reportsare grouped together to form categories taken as a star-ting point for the estimation of constant price figures inthe National Accounts.

Recorded on the export side of the Balance of Pay-ments are separate items for freight transport, passen-ger transport and rental of vessels with crew. Rental ofvessels without crew and other technical services rela-

ted to shipping are recorded under the items "rentalservices" and "other services", respectively. On theimport side, "the shipping industry's expendituresabroad" is recorded. This item excludes fuel, which isrecorded under "goods", insurance and repairs, whichare recorded under "financial" and "other services",respectively, and compensation of nonresidents em-ployees, which is recorded in the income account. Forinternational reporting, repairs are recorded under thegoods heading.

Total net receipts from shipping are presented as amemorandum item in the national publications.

Prior to the mid-1980s, the figures in the ITRS and theMaritime Transport Statistics were in relatively goodaccordance with another. From then on, however, the-re have been differences of considerable size at leastwhen gross figures are compared, with the ITRSshowing the higher figures. Closer studies have unvei-led that the ITRS probably includes some financialtransactions, while on the other hand the MaritimeTransport Statistics seems to underestimate the totalearnings and expenditures due to lack of coverage.With a large part of the Norwegian merchant fleetflagging out to registers of convenience, the MaritimeTransport Statistics in periods have failed to registertransactions related to ships registered in non-Norwegian registers but still operated by Norwegianshipping companies. The «true» level for both grossreceipts and gross expenditures for shipping are recko-ned to lie somewhere between the two sources, butcloser to the level of the ITRS than to the MaritimeTransport Statistics. Thus, the gross figures used in the

25


Balance of Payments are reached by subtracting about1/3 of the difference between the two statistical sour-ces from the ITRS. The results are, however, closelyassessed when the total production account for theshipping industry are set up as part of the final Natio-nal Accounts estimations. The distribution of the va-rious products is based on distribution keys extractedfrom the Maritime Transport Statistics.

Other adjustments are also made to the figures fromthe ITRS, reflecting that the system is not able to iden-tify all the relevant transactions constituting total in-come from provision of ocean transport services.

A supplement item is added to the export side fortransportation services provided by domestic operatorscarrying goods either to or from Norway and settled indomestic currency (Norwegian kroner). These transac-tions are not registered in the ITRS. Previously, NorgesBank collected separate reports on these transactions,but this practice has discontinued. The supplementitem is therefore currently based on estimates made inStatistics Norway.

Several adjustments are made to the ITRS on the im-port side. One adjustment relates to procurement offuel and other goods in Norwegian ports by Norwegiancarriers and settled in foreign currencies. Another re-flects the case where Norwegian operators pay anotherresident for freight commissions in foreign currencies.

7.2. Pipeline Transport

These transactions between domestic residents, areincluded in the ITRS, and estimated figures are sub-tracted from the ITRS. Finally, a supplementary item isadded on the import side to take into account Norwe-gian operators' expenditures on repairs abroad paid inNorwegian kroner.

A large part of the Norwegian owned cruiser-fleet isoperated from abroad (mainly Miami, USA). These shipsare typically flying flags of convenience and formal own-ership is with nonresident companies. In accordancewith the principles previously outlined, both the produc-tion and the capital stock represented by the cruise-fleetare regarded nonresidental to Norway. The NorwegianBalance of Payments and National Accounts do not rec-ord exports of services from the foreign registered,owned and operated cruise-fleet. Norwegian companies,however, having made direct financial investments inthose nonresident companies, normally are benefitingfrom the flows of financial returns on their investments.

Prior to this situation, the cruiser-vessels were registeredin Norway as well as operated and owned by Norwegiancompanies. The earnings of these vessels were recordedas exports in the Norwegian Balance of Payments andNational Accounts to the extent that the cruise-ticketswere bought by nonresidents. The transactions wererecorded under the export item "Ocean transport" andnot 'Travel". Needless to say, the same applies to thosecruise-vessels still operated by resident companies.

Table 7.2.1. Services related to Pipeline Transport

Mill. NOK

Exports, pipeline transportTransportation of crude or refined petroleumand petroleum products via pipelines

Transportation of natural gas via pipelines

Productnumber

603011

603012

1992

1508271

1237

1993

1660256

1404

1994

2133228

1905

1995

2245204

2041

1996

3424214

3210

1997

3987296

3691

A large part of Norwegian crude oil and natural gas isexported by pipeline to other North Sea countries. Thetransport service comprises the operation of pipelinesfrom petroleum fields on the Norwegian ContinentalShelf to installations onshore abroad. Exports of pipelinetransport are recorded as two products; one for trans-port of oil and one for transport of gas. The source isthe Oil and Gas Activity Statistics compiled by StatisticsNorway, which provides separate information for eachof the pipeline systems from the Norwegian offshorepetroleum fields to terminals abroad, such as Ekofisk -Teeside (oil), Frigg - St. Fergus (gas), Ekofisk - Emden(gas), Ekofisk -Zeebriigge (gas) and Ekofisk - Nor-derney (gas). The statistics are based on reports fromthe Norwegian pipeline companies, stating both incomeand cost data as well as transported volume for eachtransport system, including those crossing the territorialborder. Based on these statistics the value of output of

pipeline transport services is established and the corre-sponding export value is estimated. New pipelines areopened regularly and the industry is closely monitoredto make sure that all transport from the relevant pipe-lines are included as exports.

The pipeline systems are situated partly on Norwegianterritory, partly on foreign territory. It was decided earlyon to employ the ownership criterion rather than theterritorial criterion for the delimitation of domestic andnon-domestic activity. All installations off-shore, includ-ing the pipeline itself and pumping stations etc. on othercountries' continental shelf owned by Norwegian com-panies, are considered part of the Norwegian fixed capi-tal stock and hence the transportation activities domesticproduction. Only installations on-shore the recipientcountries are considered nonresident.

26


7.3. Oil Drilling Services and Other Servicesrelated to Oil Activities

Table 7.3.1. Oil Drilling Services and Other Services related to Oil Activities

Mill. NOK Product 1992number

1993 1994 1995 1996 1997

Exports, oil drilling services and other services related to oil activities 2120Adjustment for foreign ownership share of oil and gas fields on the Continental 005048 452Shelf, current expenditure

Drilling services incidental to oil and gas extraction 112011 822Renting services of drilling rigs 713412 846

Imports, oil drilling services and other services related to oil activities 7794Adjustment for foreign ownership share of oil and gas fields on the Continental 005048 107Shelf, current expenditure

Current expenditure abroad for oil and gas pipeline transport 005057 273Imports of unspecified services for oil and gas production, operating expenditu- 005063 2188re and expenditure on fixed assets

Imports of unspecified services for oil and gas pipeline transport, operatingexpenditure and expenditure on fixed assets

Drilling services incidental to oil and gas extraction 112011 1793 1526 1027Supply ship services n.e.c. for oil activity 611029 673 0 0Renting services of drilling rigs 713412 0 327 249Current expenditure abroad for oil and gas exploration and drilling, including 005056 1209 1472 891imports and unspecified services and expenditure on fixed assets

Repair services of oil platforms 351143 164Reconstruction of oil platforms 351144 50

2581 2439 1981 2257 2677815 637 576 714 752

435 472 137 '56 381331 1330 1268 1487 1887

8605 9017 6133 7202 11672102 89 95 168 177

167 147 209 432 4553146 2320 2173 2466 2209

005064 1337 1538 3947 1486 1074 2844

223104

246101

12000

124643

15548

15420

1301228

1593

33190

4051602

288

373

Imports of goods, oil activitiesGas oils 232011

110110

100100

120120

120120

9696

100100

The statistics on oil and gas activities compiled by Sta-tistics Norway are supplemented with the ITRS fromNorges Bank.

The Oil and Gas Activity Statistics are compiled bycollecting reports directly from domestic oil drillingcompanies. They report remuneration for oil drillingservices provided to nonresidents both in the North Seaarea and on continental shelf in other parts of theworld. Included is income from leasing of drilling rigsand from pipeline construction works.

The operating expenditures for oil drilling activitiesabroad are shown as a separate item on the importside. Excluded are expenditures on bunkers, which arerecorded as "merchandise" imports, and expenditureson insurance and repairs, which are included in im-ports of "financial and business services" and "otherservices", respectively. The figures reported by theITRS constitute the total expenditures abroad for theoil drilling activities. The distribution of the total onvarious products is based on information in the Oil andGas Activity Statistics.

Exports of services related to oil and gas activity in-clude correction items, representing refunds on operat-ing expenditures charged on UK owners of petroleum

fields crossing the territorial border between Norwayand UK and operated by Norwegian companies. Thesource is the Oil and Gas Activity Statistics.

Imports of services to oil and gas activities include im-ports of unspecified services used both for intermediateconsumption and capital formation in the various pe-troleum activities. Also included is a correction itemrepresenting refund of UK expenditures on Norwegianparts on borderline fields operated by UK companies.The source is the Oil and Gas Activity Statistics.

7.4. Other Transportation Services and RelatedServices

According to the IMF manual, transportation covers alltransport services that are performed by residents ofone economy for those of another and that involve thecarriage of passengers, the movement of goods, rentalsof carriers with crew and related supporting and auxil-iary services (BPM5 §230).

The Scandinavian Airline System (SAS) is given a spe-cial treatment in the National Accounts and Balance ofPayments statistics. SAS consists of a corporation es-tablished through special legislation by the govern-ments in Denmark, Sweden and Norway acting jointly,and registered in each of the three countries involved.

27


The transactions concerning SAS are allocated to thethree countries in proportion to their shares of thecorporation equity* the shares being 3/7 for Sweden,2/7 for Denmark and 2/7 for Norway. This way of

7.4.1. Passenger and Freight Services

Table 7.4.1. Passenger Services

treating SAS affects the Balance of Payments since it isalso applied on the methods for calculating exports,operating expenditures abroad and investments.


1992 1993 1994 1995 1996 1997

Exports of passenger servicesMotor coach servicesScheduled passenger transportation services by airTransportation of passengers by distant train

Imports of passenger servicesTransportation of passengers by distant trainMotor coach servicesOcean transport, other passenger transport and transporta-tion by ferriesScheduled passenger transportation services by airNon-scheduled passenger transportation services

602310621010601010

601010602310611014

621010622012

218912

1928249

12463225

122

7970

13788

1165205

1598184599

13100

179250

1590152

1846149992

1096500

18838

177897

1574105448

1417

0

19121

183774

122772276

1077

0

1794

0171282

1700821

151

14660

Imports of passenger services are defined as the trans-port of Norwegians on nonresident carriers, either be-tween Norway and abroad, between two destinationsabroad or inside Norway. Exports of transport servicesare defined in a corresponding manner.

Exports of passenger services by railway and road, andimports of passenger services by railway, air, road andsea were previously included in the travel item, but arenow recorded separately as passenger services. Conse-quently, the level of the travel item has been reducedwith a corresponding upward adjustment of exportsand imports of transportation services. The data sourceis the ITRS from Norges Bank. It can, however, be diffi-

Table 7.4.2. Freight Services

cult in practice to distinguish passenger services fromtravel.

On the basis of reports from airline companies, exportsof passenger and freight services by air and rental ofaircraft with crew are calculated by Statistics Norwayas part of the evaluation of the production account forthe air transport industry in the National Accounts.Imports of operational leasing are calculated as part ofthe intermediate consumption in the air transport in-dustry. The calculations related to the air transportindustry also specify exports of trade margins, fees andother services which are classified as other services.


1992 1993 1994 1995 1996 1997

Exports, freight servicesFreight transportation by railwayFreight transportation by other land transportation servicesScheduled transportation services of other freight by air

Exports, other servicesGoods for resale, trade margins, air transport industryFees and other payments for various services (commissions, sales fromown canteens, freights), airtransport industryRental services of aircraft with crew

Imports, freight servicesFreight transportation by railwayFreight transportation by roadFreight transportation by seaFreight transportation by air

Imports, other servicesCurrent expenditures abroad for air transportRental services of aircraft with crew

601021

602410621022

000350000379

622030

601021602410

611022621022

005055622030

665172268225

NDNDND

ND

39403743843022

160

19281928

0

641123227291

52567180

278

4696326451199

3720

1934

1701233

763179307277

60675193

338

5834234513

4910177

22751905370

783185333265

56977202

290

62451895415326

189

26312218413

1149249441459

81290284

438

60351865245142

183

24062174

232

1057165464428

75481264

409

4624

139635

3451399

27912502289

28


Exports of freight services by railway and road arereported in the ITRS from Norges Bank. Exports of"freight services by road" constitute a small item in theNorwegian Balance of Payments. No alternative infor-mation is presently available to the ITRS. The relativesmall value reported in the ITRS may have severalexplanations. Firstly, road transport can be a compo-nent of the payments on merchandise imports. Sec-ondly, expenditure on road transport can be included

7A.2. Supporting and Auxiliary Services to Transport

Table 7.4.3. Supporting and Auxiliary Services to Transport

in the payment for forwarding of goods. A third expla-nation may be that domestic agencies are involved ininternational road transport and that the settlementstherefore take place domestically.

Imports of freight services are not specified in the na-tional published Balance of Payments tables, becausethe imports of goods are valued c.i.f., i.e. includingfreight (see chapter 6.8.1).


1992 1993 1994 1995 1996 1997

Exports of supporting and auxiliary servicesCargo handling servicesStorage and warehouse servicesPort authorities servicesOther support services for water transportPilotage services, central government feesSupport services for air transportSupport services for air transport, central government feesShip-broker and charterer servicesOther forwarding agents servicesOther support and auxiliary transport services

Imports of supporting and auxiliary servicesSupporting services to railway transportShip-broker and charterer servicesOther supporting and auxiliary transport services

631110631210632211

632215632272632310

632370634011634012

634020

632110634011634020

26051325516513232210523443094

4056532713

2845143611631344

218760

5083266

5080

49711

3387174731971037

216680

6229991

52210240614

3848172741989612163710

7871069

0

4640

4604

4152187812141757

2164460

8224245

2680

2635

43172068823619422165370

6224700

2530

2467

Exports and imports of supporting and auxiliary serv-ices to transport cover a range of services provided inports, airports, and other terminal facilities.

Total exports of services provided to foreign ships andoil rigs are reported in the ITRS. The Government Ac-counts supply information on total income from pilot-age. A new law concerning the use of pilot was intro-duced in 1995. This law increases the obligation ofusing pilot. From 1995 all ships that exceed 500 GRTor that carry dangerous or contaminated cargo areobliged to use pilot. It is estimated that approximately80 per cent of the income in the Government Accountsis paid by nonresidents. Local Government Accountsinclude information on income from port charges. Theharbour charges are levied relative to the size of thevessel and the time spent in the harbour. In addition,the Port Statistics compiled by Statistics Norway con-tain information on foreign ships' call in Norwegianharbours, their size and the length of stay. From thisinformation the nonresidents' share of total harbourcharges is estimated and amounts to approximately 30per cent. The total value reported in the ITRS is re-duced with the exports of pilotage and port charges.The residual is distributed to various products such asloading, unloading, storage and warehousing, forward-ing of goods and other unspecified products related to

sea transport. The distribution is to some extent de-termined when the Balance of Payments is integratedin the National Accounts. The export figures are thenevaluated together with the production and other usesin the relevant industries.

Exports of commissions and agents' fees related to seatransport are reported in the ITRS. It is estimated thatthe figures from Norges Bank include transactions inforeign currencies between residents, which are notrelevant for Balance of Payments. The total value ac-cording to the ITRS is therefore reduced with theseresident-to-resident transactions, and the residual isrecorded as exports of commission and agent fees.

Imports of services related to sea transport are re-ported by the ITRS. In addition, Norges Bank reportsimports of commissions and agents' fees related to seatransport. It is assumed that both shipping companiesand brokers are involved in these transactions. 50 percent of the import value is therefore included as im-ports of commissions and agents fees, while the other50 per cent is included in the calculations of the ship-ping industry's operating expenditure abroad.

Both exports and imports of services provided in air-ports are reported by the ITRS from Norges Bank.

29


7.5. Travel

Table 7.5.1. Travel


1992 1993 1994 1995 1996 1997

Exports, travelTravel, touristsTravel; other

Imports, travelTravel ,tourists; resident households consumption abroadTravel, other consumption abroadTravel, business; resident industries consumption abroad(intermediate consumption)Travel, settlements between/with travel agencies

005076005077

005066005067

005068

1265012002

648

2306615330186

6406

1375712905852

2384015854

1776626

1574114923

818

26206174222047281

1497414099875

2692317917

1807488

1522114352869

2912919396

1808105

1580214938864

3194021281180

8893

005069 1144 1183 1299 1338 1448 1586

Travel differs from other components of internationalservices in that it is a demand oriented activity. Unlikeother services travel is not a specific type of service butan assortment of services consumed by travellers. Ac-cording to the BPM5 §242 -244, travel covers primarilythe goods and services acquired from an economy bytravellers during visits of less than one year in thateconomy. Excluded is the international carriage oftravellers, which is included in passenger services un-der transportation. The one-year rule does not apply tostudents and medical patients who remain residents oftheir economy of origin even if the length of stay inanother economy is one year or more. All their expen-ditures should be recorded as travel.

The IMF manual distinguishes two types of travel,businesses travel and personal travel. Business travel isrecorded as intermediate consumption in the NationalAccounts, while personal travel is recorded as finalconsumption in households. The Norwegian Balance ofPayments records four different products under theitem travel; tourist expenditures, business travel ex-penditures, other consumption expenditures, and set-tlements between travel agencies.

One consequence of adopting to the new IMF manual,was that the content of the item travel was reduced.Part of the expenditures for the carriage of passengerswhich was previously included in "travel", has beentransferred to the item "transport services".

Through 1991, entries for travel were based entirelyupon data supplied by Norges Bank on the sale of localcurrency in exchange for foreign currency, supplementedby data from credit card companies. From 1992, thesesources have been supplemented with separate estimatesbased on tourist statistics (i.e., accommodation statistics,passenger transport statistics).

The current price estimates are deflated within the Na-tional Accounts commodity flow tables and the volumeindices are compared and adjusted to adhere to volumeindicators (e.g. guest nights). This adjustment is then

also reflected in the adjustments of the current pricefigures.

The data reported from the ITRS are not able to separatebusiness travel from tourist travel. Other sources, such asa special survey of travellers, have been used to estimatebusiness travel expenditures, amounting to between 27-30 per cent of the total expenditures on travel. The dis-tinction between tourist and business travel is only madefor residents abroad, i.e. on the import side only.

Consumption by individuals staying in military bases, inembassies etc. should, according to the BPM5 (§243),

- not be included in the travel component. In the reportingto the IMF "other consumption expenditure" is includedin "government services n.e.c". However, in the Norwe-gian Balance of Payments, these expenditures are re-corded as a separate product under travel, because it ispart of the correction of consumption of households inthe National Accounts. The sources are the ITRS andGovernment Accounts, the latter supplying informationon salaries paid to diplomats. The Government Accountsdo not separate salaries to Norwegian diplomats fromsalary to local employees, and therefore only 75 per centof the total is recorded as consumption of Norwegianhouseholds.

Settlements between travel agencies are treated in aspecial way in the Balance of Payments, due to the inte-gration with the National Accounts. Only the margins inthe travel agencies are recorded as production of servicesin the National Accounts, while the transactions of thetour operators are recorded on a gross basis. This impliesthat the purchases by households of package tours areincluded in the National Accounts as household con-sumption expenditures. The settlements that the touroperators have with local hotels, transport agencies etc.abroad, are consequently recorded as intermediate con-sumption in the travel agency industry, in order to avoiddouble counting on the household consumption expendi-ture account. Only the settlement payments to abroadare recorded as intermediate consumption in the Na-tional Accounts. The settlement payments from abroad,

30


representing consumption expenditures by non-residents, are included in the various household con-sumption expenditure groups (e.g. hotel services) andare subsequently included as part of the

7.6. Communication Services

correction of nonresident consumption in Norway, inorder to arrive at domestic household consumption ex-penditure.

Table 7.6.1. Communication Services

Mill. NOK

Exports of communication servicesSettlements with foreign post officesPublic telephone servicesTelex,, telegram n.e.c.Data network servicesInterconnection servicesOther telecommunications services

Imports of communication servicesSettlements with foreign post officesPublic telephone servicesTelex,, telegram n.e.c.Data network servicesOther telecommunications services

Productnumber

641115642011642014642016642023642025

641115642011642014642016642025

1992

1412299588338

307177

1774150

1446146

1616

1993

1561336646379

338195

1961174

1590161

1818

1994

1144289446

241

251133

1108141858

851212

1995

1126298438

241

231134

986157733721212

1996

12402925042412

252156

1135163864841212

1997

1420468496

2412

264156

1185213864

841212

Communication services cover, according to the BPM5§253, two main categories; telecommunications andpostal and courier services. Telecommunications encom-pass the transmission of sound, images, or other infor-mation by telephone, telex, telegram, cable, broadcast-ing, satellite, electronic mail, etc. Postal and courierservices encompass pick-up, transport and delivery ofletters, newspapers, periodicals, brochures, parcels andother packages by national postal administrations andother operators. Also included are post office counterand mailbox rental services.

In 1994, the public owned telecommunication companywas reorganised from being a part of the public admini-stration to a public owned enterprise. As a consequencenew accounting rules were applied and the details con-cerning income and expenditures which were previouslyreported to Statistics Norway, were reduced. Previously,the accounts included detailed information on incomeand expenditures to and from abroad which were usedas exports and imports of telecommunication services inthe Balance of Payments and in the National Accounts.From 1994, more aggregated information has been re-ported and exports and imports have been estimated on

7.7 Construction Services

Table 7.7.1. Construction Services

the basis of the development of the production and otherrelevant aggregates.

The monopoly of telecommunication services has beengradually abolished and it is likely that in the futureother entities than the public enterprise will be moreinvolved in international transactions. Additional sourcesof information which can be used to estimate exportsand imports of telecommunication services will have tobe assessed and utilised in order to enhance the qualityof these data.

Information on remuneration of post to and from abroadis included in the accounts from the National Post serviceand is used as exports and imports of postal and courierservices. Other private operators are involved in export-ing and importing these services, and the data reportedfrom the ITRS include, in principle, payments related toother operators. However, the data from the NationalPost service do in general exceed the data from the ITRS,and it is therefore assumed that the data from ITRS to alarge extend contain net figures. No alternative sourcesare, at present, available for estimating private operators'exports and imports of postal and courier services.


1992 1993 1994 1995 1996 1997

Exports of construction servicesGeneral construction work for buildingsConstruction of roads, airfield runways and sports installationOther construction work involving special trades

Imports of construction servicesGeneral construction work for buildingsConstruction of roads, airfield runways and sports installation

452110452300452500

452110452300

45711330539

1092683

18661

1178

1519061

57540

47560

1124864

18858

1291

22195

126

17513

1611

16948

121

88512314

974057

31


Construction services cover, according to the BPM5§245, work performed on construction projects and in-stallations by employees of an enterprise in locationsoutside the economic territory of the enterprise. Goodsimported by the enterprise for use in the projects areincluded in the value of the services rather than undergoods, expenditures for local supplies etc. are includedunder «other business services». Projects carried out byforeign subsidiaries or branches of enterprises (directinvestors) and certain site offices are excluded becausesuch projects are part of the production of the hosteconomy.

Several problems are attached to the recording of theseservices. The recommendation in the IMF manual is torecord goods imported for use in the projects as con-struction services. This recommendation is, however,difficult to follow in practice. The External Trade Statis-tics include such products, but it is not possible to iden-tify the goods related to construction. No attempt istherefore made in the Balance of Payments to adjust theExternal Trade Statistics. Other sources, such as specialsurveys or the ITRS, have difficulties in separating goodsfrom services. A possibility of double recording is there-fore present. Another problem is to distinguish imports

7.8. Insurance Services

of construction services from domestic production (anddirect investment in the Balance of Payments). In orderto be classified as exports or imports of constructionservices, the activity should be performed for a shortperiod of time. Usually the customers pay the contractvalue in instalments, in line with the progress of work.According to the BPM5, transactions should be recordedat the time when they actually take place, independentof the time when payments are made. Prepaymentsshould be recorded as trade credits received/granted,services rendered but not yet paid as trade creditsgranted/received. This rule is difficult to follow in prac-tice and the recording of construction services in theITRS is therefore linked to the time when payments arereceived/made.

Recognising the problems attached to this area, thesource used for exports and imports of constructionservices is the ITRS. The data reported from NorgesBank are in principle limited to the actual erection ofbuildings, or the construction of roads, railways, bridgesetc. Additional sources will be assessed and direct report-ing from large enterprises may be one way to enhancethe quality of these figures.

Table 7.8.1. insurance Services


1992 1993 1994 1995 1996 1997

Exports of insurance servicesLife insurance servicesOther non-life insurance services

Imports of insurance servicesLife insurance servicesOther non-life insurance servicesOther non-life insurance services, shippingOther non-life insurance services, bank sectorOther non-life insurance services, insurance sectorOther non-life insurance services, public owned companiesOther non-life insurance services, c.i.f./fob adjustment

660110660319

660110

660319660319660319660319660319660319

330711

3296

46181

3381303000

933

35629

3553

49493

3565429000

952

315625

3131

50412

6585280

2757

01096

264517

2628

41370

6563441

19271

1208

275612

2744

41711

7613522

170525

1325

281827

2791

44535

78641613

18092

1422

Insurance services cover the provision of various types ofinsurance to nonresidents by resident insurance enter-prises, and vice versa (BPM5 §255). Such services coverfreight insurance, other types of direct insurance (e.g.life, accident,, general liabilities etc. insurance) and rein-surance. International insurance services are valued byservice charges included in total premiums earned ratherthan by total premiums. For non-life insurance, totalpremiums minus the estimated service charge and claimspayable are recorded under current transfers. For lifeinsurance, premiums minus the service charges andclaims payable are recorded in the financial accountunder other investment. There are two main featuresthat distinguish life insurance from non-life insurance.Firstly, there is often a substantial lag between the pay-ment of premiums and claims arising from these premi-

ums. Secondly, the premiums payable and claims receiv-able under life insurance policies may contain a substan-tial investment element, with the payment of premiumsviewed as savings by the insured and claims as with-drawal of these savings. The life insurance policyholderis therefore considered to have a claim on die life insur-ance enterprise, which explains the entries in the finan-cial account.

In principle, the measurement of transactions in interna-tional insurance services is consistent with that of insur-ance services for resident sectors in the SNA93. How-ever, in practice, both the IMF manual and the SNA93allow resident/nonresident flows associated with in-vestment income on technical reserves to be ignoredbecause of problems of estimation.

32


Payments of premiums and claims are reported sepa-rately by the ITRS. It is, however, recognised that pay-ments concerning international insurance consist of acomplex combination of premiums, claims and otherelements. It may therefore be difficult for the reportingbanks to specify premiums and claims, and additionalinformation is often required to «unbundle» the pay-ments.

In addition, it may be difficult to distinguish export pay-ments from import payments. A payment from nonresi-dents may either be premiums paid from abroad (ex-ports) or claims paid from abroad (imports). Likewise, apayment to abroad from residents may be either premi-ums paid (imports) or claims paid (exports). It is impor-tant that the banks can identify the domestic sectorsinvolved in the transactions since exports of insuranceservices will be provided by the insurance industry only.Imports of insurance services may, on the other hand,apply to all domestic sectors.

Prior to the last main revision of National Accounts andthe Balance of Payments, the service charge was calcu-lated as premiums less claim during a given period. Oneproblem with this method is that losses may be greateror less than are expected in the long run, claims may notyet be payable on losses that have already occurred, andpremiums may have been paid in advance on risks towhich the insurer has not yet been exposed. Therefore,in principle, net premiums may reflect not only a servicecharge but also capital gains (losses) and prepayments

7.9. Financial Services

(post-payments). For a given period the claims may ex-ceed the premiums which result in negative imports (orexports). This method of calculating the service chargeshas therefore been revised and estimates of the serviceelements, both for credits and debits, are now made byusing the ratio of services to gross premiums, as ob-served in the statistics on domestic insurance companies,produced by Statistics Norway.

The ratio for non-life insurance was in 1996 33 per centof the premiums reported from ITRS and the ratio forlife insurance was 16 per cent.

Estimation on imports of freight insurance is made whenthe imports of merchandise are adjusted from c.ii. tof.o.b. where the insurance services are calculated as 0.6per cent of the imports of goods from the External TradeStatistics. This ratio is based on estimates made by Sta-tistics Norway.

Non-life and life insurance services are recorded as twodifferent products, re-insurance is, however, not re-corded separately but is included in the figures for non-life insurance.

It is assumed that in the Oil and Gas activity statistics,in the Maritime Transport Statistics and in the accountsfrom SAS, the expenditure on insurance is included inthe figures for operating expenditure abroad. In orderto avoid double counting, imports of insurance servicesare not calculated for these industries.

Table 7.9.1. Financial Services


1992 1993 1994 1995 1996 1997

Exports of financial servicesOther bank activities, paid service chargesOther credit granting services, paid service charges

Imports of financial sen/icesOther bank activities, paid service charges, public sectorOther bank activities, paid service chargesOther credit granting services, paid service charges

651212652212

651212651212652212

237118119

496112154230

25792165

681166216299

30796211

4633

116344

29075215

53243159330

495115380

4682

191275

38771316

41313192208

Financial services cover, according to the BPM5 manual§258, financial intermediary and auxiliary services(except those of insurance enterprises and pensionfunds) conducted between residents and nonresidents.Included are intermediary service fees, such as thoseassociated with letter of credit, bankers' acceptance,lines of credit, financial leasing and foreign exchangetransactions. Also included are commissions and otherfees related to transactions in securities - brokerage,placements of issues, underwriting, redemption's andarrangement of swaps, options and other hedging in-struments, commissions of commodity futures traders,and services related to asset management, financial

market operational and regulatory services, securitycustody services etc.

The SNA93, in addition to the explicit commissions andfees noted above, includes financial intermediationservices indirectly measured. The SNA93 recommendsthat these services should be distributed to the varioususes, exports included. However, this procedure is notrecommended in the IMF manual, and as a result, theseimplicit services are reported indistinguishably underinvestment income as interest. In the Norwegian Na-tional Accounts, the distribution of indirectly measuredfinancial services is not implemented because interna-

33


tional recommendations for estimation methods arenot yet established. When the National Accounts startto apply the SNA93 recommendation on this point, theBalance of Payments will have to do the same, due tothe integration of the Balance of Payments with theNational Accounts.

It is often assumed that international trade in financialservices takes place mainly between resident and non-resident banks, and other financial institutions. Mostresident non-banks, above all most private individualsand small and medium-sized companies and governmentagencies still use the services of resident institutions.

7.10. Computer and Information Services

Table 7.10.1. Computer and Information Services

However, direct transactions with foreign banks (locatedabroad) have become more frequent in recent years.

Norges Bank reports exports and imports of «othermonetary intermediation services, direct charges» and«other credit granting services, direct charges» from theITRS. The figures are compared with other availablesources such as Government Accounts and the BankingStatistics, and the figures can be adjusted when the Bal-ance of Payments is integrated in the National Accounts,based on information from these sources. Exports orimports of activities auxiliary to financial intermediationare not recorded separately.


1992 1993 1994 1995 1996 1997

Exports of computer and information servicesProgram packages, softwareSoftware consultancy and other supply services

Imports of computer and information services

Program package, softwareSoftware consultancy and other supply services

722010722020

722010722020

313101212

1317

730587

435124311

1429

743686

554107447

1573

829744

440123317

1765

939826

33844

294

960

425535

23560

175

820

442378

Computer and information services cover, (BPM5 §259)computer data and news-related service transactionsbetween residents and nonresidents. Included are: databases, such as development, storage and on-line timeseries, data processing - including tabulation, provisionof processing services on a time-share or specific basis,and management of facilities of others on a continuingbasis, hardware consultancy, software implementation -including design, development and programming ofcustomised systems, maintenance and repair of comput-ers and peripheral equipment, news agency services -including provision of news, photographs, and featurearticles to the media and direct, non-bulk subscriptionsto newspapers and periodicals.

It is commonly assumed that most of the internationalbusiness is conducted by large companies and that thegreat number of small and medium-sized companiesusually serve the local or regional demand only. This

7.11. Royalties and Licence Fees

Table 7.11.1. Royalties and Licence Fees

industry has changed considerably over the last fewyears, and several borderline problems have occurred. Itmay be difficult to distinguish the service element be-cause many of the services described above comprise acombination of goods and services. It may also be diffi-cult to identify the relevant service category since com-puter related consultancy often is an integral part ofmanagement consultancy, or similarly services related tothe transmission of data and other information(communication services) cannot always be distin-guished from services related to the production storage,processing and distribution of data, particularly if theyare provided by the same entity.

Norges Bank reports exports and imports of computerservices. In addition, exports and imports of software arereported in the External Trade Statistics as exports andimports of goods, but are classified as services in theBalance of Payments and National Accounts.

Mill. NOK

Exports, Renting services of licences, patents, royalties n.e.c.Imports, Renting services of licences, patents, royalties n.e.c.

Productnumber748410748410

1992

7571142

1993

8911888

1994

8192104

1995

7002377

1996

7621873

1997

6002368

This service category covers, according to BPM5 §260,the exchange of payments and receipts between resi-dents and nonresidents for the authorised use of intan-gible, non-produced, non-financial assets and proprietary

rights (such as patents, copyrights, trademarks, indus-trial processes, franchises etc.) and the use, throughlicensing agreement, of produced originals or prototypes(such as manuscripts and films).

34


Inclusion of this item under services rather than underincome is in accordance with the SNA93 treatment ofsuch items as payments for production of services forintermediate consumption or receipts from sales of out-put used as intermediate inputs.

Three different transactions can be distinguished; theestablishment of protective rights, the final sale of exist-ing rights by the proprietor to another entity and the saleof the right to use the intangible asset for a limited pe-riod of time. Only the last transactions should be re-corded as exports or imports of royalties and licencefees.

7.12. Merchanting and other Trade-relatedServices

The royalties and licence fees may be part of larger pay-ments which consists of several components such asmanagement services, other business services, audio-visual services etc. or the payments may be misused forprofit shifting. The payments may be periodical, recur-rent payments as well as one-time payments, paymentsas percentage of turnover or profit, or the exchange ofknowledge may take place without any actual paymentrelated to the exchange. This category can therefore notbe assumed to reflect the total transfer of know-how andtechnology in an appropriate manner.

Exports and imports of royalties and licence fees arereported by the ITRS from Norges Bank.

Table 7.12.1. Trade-related Services

Mill. NOK

Exports of commissionsImports of commissions

Productnumber510900510900

1992

1059965

1993

11221193

1994

11481398

1995

11971460

1996

15501419

1997

19641842

Merchanting and other trade related services covercommissions on goods and services transactions betweenresident merchants, commodity brokers, dealers orcommission agents and nonresidents (BPM5 262). Thiscategory includes transactions in ships, aircraft and auc-tion sales. Merchanting is defined as the purchase of agood by a resident (of the compiling country) from anonresident and the subsequent resale of the good toanother nonresident. During the process, the good doesnot enter or leave the compiling country. The differencebetween the value of goods when acquired and the valuewhen sold should be recorded as the value of merchant-ing services provided.

Exports and imports of commissions are reported fromthe ITRS. The transactions related to trade in ships, oilplatforms, and aircraft, are reported together with thecommissions and agents7 fees associated with passengerand freight transport, and are therefore included in«other transportation services». Exports and imports ofcommissions related to trade in other goods are recordedas trade related services. In addition exports of commis-sions fees are calculated as 0.144 per cent of the importsof goods from the External Trade Statistics.

There are two main problems related to the reporting ofmerchanting. The decision on where the goods will besold (domestically or abroad) may not have been madewhen the goods are acquired. The transaction is there-fore not reported as merchanting. The reporting banksare, in addition, often not able to distinguish paymentsfor merchanting from payments of ordinary exports ofgoods. These problems are reflected in the merchantingdata reported from Norges Bank, in the sense that thedifference between the value of the goods when ac-quired and the value when sold is negative. Assumingthat the purpose of merchanting is profit-making thisdifference should be positive at least over a longer pe-riod of time. Due to these data collection problems, mer-chanting is, in the Norwegian Balance of Payments, in-cluded in «unallocated financial transactions and errorsand emissions».

Alternative recording methods are under evaluation. Onemethod considered is to estimate the service charge byapplying an average profit margin on the reported sales.This method and other alternative methods will have tobe closely assessed before the existing recording practiceis revised.

35


7.13. Operational Leasing

Table 7.13.1. Operational Leasing


1992 1993 1994 1995 1996 1997

Exports, leasingRenting services of ships and boatsRenting services of other machinery and equipmentRenting services of drilling rigs

Imports, leasingRenting services of other machinery and equipmentRenting services of drilling rigs

712210713411

713412

713411

713412

1846677323846

4524520

23636154171331

1194867327

20515811401330

1109860249

18494261551268

626502124

20254261121487

442312130

23413001541887

695290405

Operational leasing covers resident / nonresidentleasing (other than financial leasing) and the charter ofships, aircraft, and transportation equipment such asrailway cars, containers, rigs etc. without crew (BPM5§263). Leasing with crew is recorded as «transportationservice».

When lease arrangement is made for a capital good formost or all of its expected economic life, and the lessorexpects to carry the responsibilities and to recover mostor all of the cost of the good and the carrying charges,the transaction should be regarded as financial leasing.Financial leasing should be recorded as exports, orimports of goods with an offsetting entry in the finan-cial account reflecting the credit extended to the lessee.

The Maritime Transport Statistics collected by StatisticsNorway and the ITRS from Norges Bank provide in-formation on rental of ships without crew. The ITRS

reports exports and imports of rental of oil platforms,which are recorded in the preliminary editions of theBalance of Payments and National Accounts. The sta-tistics for Oil and Gas Activity also have some informa-tion on rental of oil platforms, which is used to adjustthe data from Norges Bank when the National Accountsare balanced. The accounts from SAS include informa-tion on rental of aircraft which is recorded as rentalwith crew and is therefore included as "transportationservices". Rentals of other machinery and equipmentare reported by the ITRS.

It may be difficult to distinguish the three differenttypes of leasing (i.e. financial leasing, leasing with crewand leasing without crew). The External Trade Statis-tics contain some information on leasing of ships andaircraft which in the future will be used as an alterna-tive source and for quality checks.

36


7.14. Other Business Services

Table 7.14.1. Other Business Services


1992 1993 1994 1995 1996 1997

Exports of other business servicesLegal, accounting and management consultancy servicesLegal servicesAccounting and auditing servicesBusiness and management consultancy services n.e.c.

Advertising and market research servicesAdvertising services

Research and development servicesResearch and development services on natural sciences

Architectural, engineering and other technical servicesPlans and technical drawingsOther engineering services, shippingTechnical advisory and consultancy servicesOther engineering services

Agricultural, mining and on-site processingAdjustment for foreign ownership share of oil and gas fields onthe Continental Shelf, current expenditureDrilling services incidental to oil and gas extraction

Other business servicesPhotographs, exposed film, goodsFees and other payments for various servicesRental services involving commercial buildingsInstallation work in mining and manufacturingOther business services

Imports of other business servicesLegal, accounting and management consultancy servicesLegal servicesAccounting and auditing servicesBusiness and management consultancy services n.e.c.

Advertising and market research servicesAdvertising services

Research and development servicesResearch and development services on natural sciences

Architectural, engineering and other technical servicesPlans and technical drawingsTechnical advisory and consultancy services

Agricultural, mining and on-site processingAdjustment for foreign ownership share of oil and gas fields onthe Continental Shelf, current expenditureImports of unspecified services for oil and gas production, opera-ting expenditure and expenditure on fixed assetsDrilling services incidental to oil and gas extractionCurrent expenditure abroad for oil and gas exploration anddrilling, including imports and unspecified services and expendi-ture on fixed assets

Other business servicesCurrent expenditure abroad for fishing and whalingPhotographs, exposed film, goodsImports of fees and other payments for various servicesRental services involving commercial buildingsOther business services

741110741200741400

744010

731000

742011742040742020742040

005048

112011

748110

000379702012000375748400

741110741200

741400

744010

731000

742011

742020

005048

005063

112011

005056

005051748110005059702012748400

73194982294

265

154154

386386

6201

1384810

1274452

822

448115

16691894

2685

129186844245

255

192192

547547

7898

781

5297107

2188

17931209

54091047

1138132

4082

8255359263294

206206

487487

7131

18347158

1250815

435

52907

21353450

3064

14297

82246826328

190190

506506

95414940

6246102

3146

15261472

5579ND45

1523190

3821

61876473387

302

308308

617617

9131

1807248

1109637

472

25937

18346ND

2357

114891084

60313

468

369369

570570

12409

1231

4327

89

2320

1027

891

3899ND30368199

3302

644267340517

251

341341

673673

7972

1876017

713576

137

32458

30653ND

2878

11649105159724430

378378

664664

10714

1067

4111

95

2173

1200

643

4374

ND395202693546

843245514438273

408.408

847847

6590

2703863

770714

56

529311

46472ND

4746

1385868715738492

307307

913913

3765

371

5404

168

2466

1542

1228

6171ND366932175225

1172357716322392

436436

804804

10582

20484012

790752

38

80581660520ND

7417

2074274420422518

641641

850850

8134

809

7307177

2209

3319

1602

10387ND279712019188

37


This category includes several types of services otherthan previously described. Included are:- Legal, accounting and management consultancy

services- Advertising and market research services.- Research and development services.- Architectural, engineering and other technical

services.- Agricultural, mining and on-site processing services

The ITRS from Norges Bank reports exports and im-ports of these services, but it is recognised that it oftenmay be difficult to specify the exact nature of thetransactions. Many borderline cases occur and as theinternational trade in services increases, alternative

7.15. Personal, Cultural and RecreationalServices

Table 7.15.1. Personal, Cultural and Recreational Services

sources may probably be necessary in order to ensurethe quality of these data. It is commonly assumed thatthese services are supplied by large, often multinationalcompanies. Direct reporting from these companies isone alternative, another is to include information onexports and imports in the forms that are used in theManufacturing Statistics collected by Statistics Norway.These and other alternatives will be evaluated in thefuture.

Services related to the oil industry are included in agri-cultural, mining and on-site processing services in thereporting to international organisations (IMF, OECDand Eurostat).


1992 1993 1994 1995 1996 1997

Exports of personal, cultural and recreational servicesAudio-visual and related servicesFilm, cinematographyVideo tapesMotion picture and video tape distribution servicesBroadcasting services, advertising

Other personal, cultural and recreational services

Works of art, antiques and other collectionsCanteen and catering servicesEntertainment in theatre, opera, concert halls n.e.c.Other personal services

Imports of personal, cultural and recreational services

Audio-visual and related services

Film, cinematographyVideo tapesMotion picture and video tape distribution servicesBroadcasting services, advertising

Other personal, cultural and recreational services

Works of art, antiques and other collectionsEntertainment in theatre, opera, concert halls n.e.c.Other personal services

921110921120921210922002

923110555000923122930400

921110

921120921210922002

923110923122930400

3686817564

300

741931122

344

197

1580993

147

954012

433831

20584

350

912241124

573

327

171421635

246

1546527

5481600341188

388

702662329

507

334

181431703

173

756731

5331840321448

349

1141942714

495

327

161381703

168

836916

5611680301308

393

881832597

1164

407

181212599

757

70104583

6651551

391087

510

19815321138

1537

392

171232475

1145

22498823

This heading is divided into two categories (1) audio-visual and related services and (2) other cultural andrecreational services (BPM5 §265). The first categorycomprises services and associated fees related to theproduction of motion pictures (on film or video tape),radio and television and musical recordings. Receiptsor payments for rentals, fees received by actors, direc-tors, producers etc. for productions abroad or otherassociated fees should be included. The second cate-gory comprises other personal, recreational and cul-tural services such as those associated with museums,libraries, archives, and other cultural, sporting andrecreational activities.

Exports and imports of films, videotapes and art objectsare registered in the External Trade Statistics as ex-ports and imports of goods, but are classified as exportsand imports of personal, cultural and recreationalservices in the Balance of Payments and National Ac-counts.

The ITRS from Norges Bank reports a total for culturalservices. This total is distributed to three differentproducts; film and video distribution, broadcasting(advertising), and theatre/ opera. The distributionalkey is based on an analysis of the entities involved inthe transactions. For 1996 the keys for exports were;

38


80 per cent to film and video distribution, 15 per centto theatres and operas, and 5 per cent to broadcasting(advertising). For imports the keys were 70 per cent tofilm and video distribution, 28 per cent to broadcasting

7.16. Government Services n.i.e.

(advertising), and 2 per cent to opera and theatres.The distributional key is revised regularly.In addition, the ITRS from Norges Bank report exportsand imports of other personal services.

Table 7.16.1. Government Services n.i.e.


1992 1993 1994 1995 1996 1997

Exports of government servicesFees and other payments for various services from public sectorCredit services and services to financial intermediation, centralgovernment feesAdministration, cultural, recreational and religious services,central government feesMilitary defence, central government feesTravel; other consumption

Imports of government servicesImports of services; central government, military defenceImports of services; central governmentTravel tourists; resident consumption abroad

000379671370

751274

752271005077

005065005065005067

150702

ND

857648

667120361186

1839100

128

849852

613196240177

239750

1108

466818

1121713204204

135830

0

480875

600237183180

135010

0

480869

796226390180

1347

30

0

480864

860397283180

This is a residual category covering government servicetransactions not included in previous classifications.

Some information on income from military fees isavailable from the Government Accounts, and recordedas exports. The ITRS reports exports of other govern-ment services which cannot be specified on productand is included in this category. The ITRS reports atotal for imports of services to the government sector.It is assumed that compensation of employees in Nor-wegian embassies etc. is included in these figures. The"Government Accounts" includes some information onsalaries and allowances to diplomats which includecompensations paid to locally employed staff. It is es-

timated that 75 per cent of the total is paid to Norwe-gians. The total reported from the ITRS is reduced with75 per cent of the amount from the Government Ac-counts before recorded as imports of services. The ITRSalso reports a total for military expenses abroad and itis assumed that this total includes compensation tomilitary staff employed in the UN. The total is reducedwith an estimate made for the UN staff before recordedas imports of services unspecified on product. The ex-penditures made by diplomats and UN staff are in-cluded as "travel" in the Norwegian Balance of Pay-ments and are part of the correction item of householdconsumption expenditure in the National Accounts.

39


8. Income

Figure 8.1. Total Income 1978 -1997

—h— Income, credit (inchcompensation of employees)

—D— Income, debit (incl.compensation of employees)

—5K— Net income

-300001978 1980 1982 1984 1986 1988 1990 1992 1994 1996

Year

Income covers two types of transactions between resi-dents and nonresidents; those involving compensationof employees and those involving investment incomereceipts and payments on external financial assets andliabilities (BPM5 §267). Holding capital gains andlosses, both realised and unrealised, are not classified

8.1. Compensation of Employees

Table 8.1.1. Compensation of Employees

as income on investment. Realised holding gains andlosses arising from transactions are included in thefinancial account, while unrealised valuation changesare not included. In the National Accounts and theInternational Investment Position Statistics, the latter isrecorded on a separate revaluation account.

Mill. NOK Paymenttype

1992 1993 1994 1995 1996 1997

Income, compensation of employeesIncome, compensation of employees

Expenditure, compensation of employeesCompensation to nonresident seamenCompensation to nonresident pilots

30111

3011130111

11801180

27742274500

11801180

37743032

742

12001200

33152681634

12001200

32012738

463

12001200

34432881562

12001200

39103469441

Compensation of employees comprises wages, salaries,and other benefits, in cash or in kind, earned by indi-viduals in economies other than those in which theyare residents, for work performed (and paid for by)nonresidents (BPM5 §269). Contributions paid by resi-dent employers to foreign Social Security schemes orsimilar foreign private insurance or pensions funds

should be included as part of compensation of employ-ees.

On the expenditure side, compensation of employees toforeign seamen and to foreign pilots are recorded.Compensation to foreign seamen is derived from theannual Maritime Transport Statistics compiled by Sta-

40


tistics Norway. This item consists of two elements.Firstly, foreign seamen on Norwegian ships were rede-fined from residents to nonresidents as part of themain revision of National Accounts and Balance ofPayments, entailing that their wages are no longerrecorded as a combination of direct purchases abroadby resident households and transfers to abroad, butentirely as compensation of nonresident workers. Sec-ondly, compensation paid to foreign crews on char-tered ships is recorded as compensation of nonresidentworkers, whereas previously this was included as partof the shipping sector's operating expenditure abroad.The accounts from SAS are used to calculate the com-

8.2. Investment Income

Table 8.2.1. Investment Income

pensation to foreign pilots. This is a consequence of thespecial treatment SAS is given in the National Ac-counts. No estimation is, at present, made for compen-sation of employees to other groups. Alternativesources for information will be assessed in the future inorder to enhance the quality of these data.

On the income side, an estimation is made for Norwe-gians working abroad as a group as a whole. This calcu-lation is based on information from the tax authoritiesand from the register of wages and salaries. It is rec-ognised that this information is rather uncertain, andfurther improvements of the data are required.

Mil!. NOK

Total investment incomeInterest on bank depositsInterest on bonds and other securitiesInterest on loansDividendsUnspecified investment income

Reinvested earnings

Total investment expenditureInterest on bank depositsInterest on bonds and other securitiesUnspecified investment income

Interest on loansDividendsReinvested earnings

Paymenttype

32229322303224932250

32235,3225432271

3222932230

32235,32254322493225032271

1992

1553311998

5185068615510

-3176

314136571

946— 317

1787514337-8633

1993

15702921615475232729445

-1467

3288143011229536

1947714645-7307

1994

229511328722283699492208

3037

3625840241127

186

1933175174073

1995

2756314213315744721279439

4003

3743149521304203

1802778445101

1996

2964314750425240681816279

4478

3692152931725262

15839108712931

1997

3513619912453443253294

87

2984

4211370033228

95

18092100893606

Investment income is defined as the income accruing toan investor from the ownership of financial assets.Included under this heading are dividends, remittanceof branch profits, reinvested earnings and interest. Thesource used to record data on investment income in theNorwegian Balance of Payments is the ITRS fromNorges Bank.

The BPM5 recommends that investment income shouldbe split between income from direct investment andincome from portfolio investment. The ITRS only partlymakes this distinction, but plans are made for a fullimplementation of this recommendation in the future.Reinvested earnings are, however, recorded as a sepa-rate item.

Dividends are reported from the ITRS and recorded asof the date they are paid while reinvested earnings arerecorded in the periods when they are earned. Divi-dends and reinvested earnings are recorded with thecode for the resident sector involved, in some casesalso by industry, in order to include the transactions inthe Institutional Sector Accounts of the National Ac-counts.

The total operating surplus in direct investment enter-prises is recorded as income for the investor. Rein-vested earnings are the difference between the totalsurplus and distributed dividends. Previously, onlyactual dividend payments were included in the ac-counts. The offset to the income item reinvested earn-ings is found in the financial account under the samedesignation. Retained earnings in a direct investmententerprise, represented by a positive figure for the itemdirect investment, is in the Balance of Payments ac-counts shown as an investment transaction which in-creases the investor's claims on the investment enter-prise. If dividend payments exceed the surplus, rein-vested earnings are negative, which may be interpretedas desinvestment.

Reinvested earnings are reported from Norges Bank.Data for reinvested earning from Norway to nonresi-dents are derived from a special survey conducted byNorges Bank for direct investment in Norway. Thesurvey includes information necessary to calculate re-invested earnings, i.e. operating surplus in the enter-prises and interest, dividends, transfers and taxes pay-able or receivable. The survey is conducted on an an-

41


nual basis and is published in October the followingyear. Data for reinvested earnings from nonresidents toNorway are based on information from forms fromSkattedirektoratet (The Directorate of Taxes). NorgesBank uses these forms to construct data for direct in-vestment abroad. This information is ready approxi-mately 13 months after the end of a year. Preliminarydata for reinvested earnings are estimated by NorgesBank based on expected surplus in the enterprises andreported dividends paid or received. The estimatedfigures are reported monthly and this reporting ispaper based. Due to uncertainty attached to the ex-pected surpluses, the estimated figures for reinvestedearnings may be revised considerably when the finaldata are ready.

The BPM5 recommends that interest should be re-corded on an accrual basis. If the interest is not actu-ally paid, an income entry should be recorded underthe appropriate instrument and a counterpart entry ismade in the financial account to reflect an increase inclaim associated with non-payment. Norges Bank re-ports interest on a payment basis rather than on anaccrual basis, but it is assumed that usually there willnot be a very large difference between interest re-corded on a payment basis and interest recorded on anaccrual basis.

An exception to this assumption is big zero couponbonds, where there may be a substantial differencebetween the issue price and the value at maturitywhich should be treated as interest. The differenceshould be recorded as accruing over the life of thebond as a series of interest payments rather than beingrecorded when the interest is due for payment. No bigzero coupon bonds are at the moment registered in theITRS. However, methods are constructed so that when

such bonds are registered the interest should be re-corded as a series of interest payments until the bond isdue for payment.

Another exception to this assumption is that in periodswhere assets (or liabilities) increases rapidly, a sub-stantial difference may develop between interest on anaccrued basis and interest on a payment basis.

The ITRS reports interest paid on bank deposits, loans,bonds and other securities, specified on the financialasset associated with the interest and the domesticsector (and in some cases the domestic industry) in-volved in the transactions. Norges Bank's own interesttransactions are recorded net (interest from abroadminus interest to abroad) in the Balance of Payments.The reason for this is that accrued interest is includedwhen Norges Bank buys bonds. The price paid is splitinto interest accrued and the bond itself and the ac-crued interest is reported as interest payments toabroad. Since it is not regarded logical to pay intereston assets, these interest transactions are recorded net.

Some information on investment income to and fromabroad is also found in the accounts for financial insti-tutions and other sources used to establish the Institu-tional Sector Accounts in the National Accounts. Thisinformation is used to evaluate the quality of the datareported from Norges Bank, and adjustments to thereported data may be made when the Balance of Pay-ments data are integrated in the Institutional SectorAccounts.

Included as investment income is also other incomethat cannot be classified according to the associatedfinancial assets or liabilities. Normally, relatively smallfigures are reported as other investment income.

42


9. Transfers

Figure 9.1. Current and Capital Transfers 1978 -1996

25000

o

i

20000 - -

15000 --

10000 -

5000 -

0)

Current transfers, credit

Current transfers, debit

Current transfers, net

—X Capital transfers, net

1978 1980 1982 1984 1986 1988 1990 1992 1994 1996Year

The figures illustrate current and capital transfers forthe period 1978 -1997. A break in the time series oc-curred between 1991 and 1992. This is due to a changein the recording of insurance, which is explained inmore detail in chapter 7.8 and chapter 9.1.3.

Transfers are defined in the BPM5 as being the offset-ting entries for the provision of real resources or fi-nancial items by one economy to another without aquid pro quo. This means that whenever a given econ-omy does not receive (supply) recompense in the formof real resources or financial items for goods, services,income or financial items supplied to (received from)another economy, the Balance of Payments shouldrecord a transfer.

A distinction is made between current and capitaltransfers. Current transfers are recorded in the currentaccount, whereas capital transfers are recorded in the

capital sub-account of the capital and financial account.This distinction reflects efforts made to harmonise theBPM5 with the SNA93. Capital transfers in kind consistof the transfer of the ownership of a fixed asset, or theforgiveness of a liability (BPM5 §295). A cash transferis a capital transfer when it is linked to, or conditionalon, the acquisition or disposal of a fixed asset by one orboth parties to the transaction (e.g. investment grants).By convention, migrants' transfers are also consideredcapital transfer. Capital transfers are generally largeand irregular, but they cannot always be defined interms of size or frequency. All transfers that are notconsidered to be capital transfers are current transfers.Current transfers directly affect the level of disposableincome and should influence the consumption of goodsand services. That is, current transfers reduce the in-come and consumption possibilities of the donor andincrease the income and consumption possibilities ofthe recipient.

43


9.1. Current Transfers

Table 9.1.1. Current Transfers

Mill. NOK

Current transfers, incomeTaxPensionsInheritancePrivate transfers, subscription and missionWorkers remittancesUnspecified transfersUnspecified claims / compensationsInsurance premiums, accident, netInsurance claims, accident

Current transfers, expenditureTaxPensionsTransfers, general governmentInheritancePrivate transfers, subscription and missionWorkers remittancesUnspecified transfersUnspecified claims/compensationsInsurance premiums, accident, netInsurance claims, accident

Paymenttype

335223361134196341973419834199344303461034620

33522336113419034196341973419834199344303461034620

1992

1042954598

177717ND18659

66931954

19457302

226804347

2300ND

651214

68651952

1993

1087792099

244677ND

258106

72131360

2040821245

6598383

2448ND

368200

72392915

1994

9120669112234766ND

24299

6358640

21345467121

7387495

2812ND

41598

67922758

1995

8087348118273541206488205

5330578

2113819467

7932527

16501227711142

52533435

1996

9124629114196403

231064116

55691010

18815281

297200216

279928

566108

50782510

1997

930036565

214459

231623328

5666557

1939521849

7473220

300124

68566

53012358

Current transfers are classified according to the sectorsof the compiling economy into two main categories:general government and other sectors (BPM5 §298).The «other» sub-component is further broken downinto two items; workers remittances and other trans-fers.

9.1.1. General Government transfersThis component refers to transfers between the do-mestic government and nonresidents. Included in thisitem are subsidies or grants to currents budgets, tech-nical assistance, indemnities imposed under peacetreaties, casualty insurance premiums less servicecharges and casualty insurance claims, and governmentcontribution to the administrative budgets of interna-tional organisations. Also included are taxes, fines,membership fees to non-governmental organisations,grants to non-governmental entities, pensions etc.

In the Norwegian Balance of Payments the, figures forgovernment transfer to nonresidents are taken fromthe Government Accounts. The preliminary Govern-ment Accounts are less detailed than the final accounts.For the monthly Balance of Payments, Statistics Nor-way estimates government transfer based on the in-formation available at that stage. These estimates arerevised when the final version of Government Accountsbecomes available.

9.1.2. Workers RemittancesWorkers' remittances cover current transfers by mi-grants who are employed in new economies and con-sidered residents there (BPM5 §302). Workers' remit-

tances often occur between related persons. Workersremittances are reported from the ITRS.

9.1.3. Other TransfersThis item refers to current transfers, other than work-ers' remittances, where the resident entity is not part ofthe government sector. The ITRS reports data on trans-fers from residents' NGO (non government organisa-tion) to nonresidents for foreign aid, contributions tomissionary work abroad, membership fees to foreign /international organisations, pensions, taxes, fines, heri-tage and workers remittances. In addition, insurancepremiums (less services charges) and claims are re-corded as other transfers. The calculations concerninginsurance are explained in detail under the heading forinsurance services. The method for insurance is appliedfrom 1992 and onwards, the time series are thereforenot consistent for these products.

In the cases when transfers from Norway to nonresi-dents take the form of provision of goods, the offsettingitem is found in the External Trade Statistics as exportsof goods. When transfers take the form of provision ofservices, exports of services should be recorded as theoffsetting item. The ITRS from Norges Bank is based onpayments and will therefore not include these services.Since the ITRS is the main source for many servicecategories, a potential problem of underestimating thetotal export of services exists. As part of the work withincreasing the quality of the Balance of Payments, thiswill be one of the areas that will be closer examined inthe future.

44


10. Capital Account

The capital account covers all transactions that involvethe receipt or payment of capital transfers and acquisi-tion / disposal of non-produced, non-financial assets.

Transactions in assets such as land and subsoil assets(tangible assets), and patents, copyrights, licenses etc.(intangible assets) should be recorded as transactionsin non-produced, non-financial assets. It is only thepurchase or sale of intangible assets such as patents,licences etc. that should be recorded in the capital ac-count, the use of such assets for provision of services tononresidents should be recorded under services. Trans-actions in tangible assets such as land and subsoil as-sets will generally not be recorded in the Balance of

10.1. Capital Transfers

Table 10.1.1. Capital Transfers

Payments because land, in most cases, is considered tobe owned by a resident of the economy in which it islocated. The acquisition of land will therefore be con-sidered as a nonresident having a financial claim on aresident unit. The only exception concerns land pur-chased or sold by a foreign embassy when the transac-tion involves a shift of the land from one economicterritory to another. In these cases transactions shouldbe recorded as transactions in non-produced non-financial assets. Such transactions are rather infrequentand the capital account in the Balance of Payments willtherefore in most periods be restricted to comprisecapital transfers.

Mill. NOK Paymenttype

1992 1993 1994 1995 1996 1997

Capital transfers, assetsGeneral governmentMigrants transfersDebt forgiveness

Capital transfers, liabilityMigrants transfersDebt forgiveness

361903619236192

3619236192

19589431015

0

8888880

23949931178223

21721276896

17649558090

6626620

16108197910

5435430

1235844199192

415163252

14751008251216

19813266

As with current transfers, capital transfers are, in theBPM5, broken down into two sub-components; generalgovernment and other. General government capitaltransfers are further broken down into debt forgivenessand other, while non-government transfers are splitinto migrants' transfers, debt forgiveness and other.

With regard to the cancellation of debt, only cancella-tion based on mutual agreements between creditor anddebtor represent capital transfers, the unilateral writingoff of debts reflects a capital loss which should not berecorded as transfer. The cancellation of debt is re-corded in the financial account as a reduction of theliability concerned and as an offsetting entry as capitaltransfer in the capital account.

Migrants are defined in the BPM5 to be individuals(except students, medical patients, diplomatic andmilitary personnel) who move their home from onecountry to another and who stay in the new country forat least one year. Migrants' transfers refer to thehousehold and personal effects, together with the fi-nancial claims and liabilities, that migrants take withthem at the time they migrate from one country toanother. The value of the household and personal ef-fects of migrants together with the movable capitalgoods that they actually transfer should be recorded astransactions in goods, with offsetting entries in thecapital account. The financial claims and liabilitiesshould be recorded under the relevant categories in thefinancial account with offsetting entries in the capital

45


account. It is recognised that it may be difficult inpractice to include all assets accompanying migrantswhen they enter a new economy.

Other capital transfers relate mainly to investmentgrants. Investment grants are used for the purpose ofadding to or financing the recipient economy's grossfixed capital formation. In addition, inheritance taxes,death duties, gift taxes, and exceptionally large dona-tions should be recorded as capital transfers.

Debt forgiveness and migrants' transfers are reportedby the ITRS from Norges Bank. The migrants' transfersare recorded as from the date when the transfers are

registered in the ITRS even though the migrant maynot yet have changed his status from resident to non-residents (and vice versa). No offsetting entries aremade in the current or financial account for migrants'transfers. It is assumed that these entries are alreadyincluded in the External Trade Statistics and in thefinancial transactions reported from the ITRS.

The Government Accounts includes information oninvestment grants and deposits made in «investmentbanks» which is recorded as capital transfer. StatisticsNorway estimates, on a quarterly basis, capital trans-fers until the final version of Government Accountsbecomes available.

46


11. Financial Account

Figure 11.1. External Financial Transactions

O-Net acquisition of assets

-Net acquisition of liabilities

i— Unallocated transactions andstatistical errors

-20000 J-

1992

Year1993 1994 1995 1996 1997

The BPM5 defines the financial account as comprisingall transactions (actual and imputed) in an economy'sexternal financial assets and liabilities. The definitionof the financial account stipulates that three criteriahave to be met for a transaction to in be included inthe financial account;1. A transaction should involve a change of ownership,

including the creation or liquidation of an asset orliability.

2. An asset or liability must represent actual claimsthat are legally in existence.

3. A transaction should involve an external financialasset or liability. The creditor and debtor must beresident of two different economies, in order toclassify the financial asset or liability as external.

For some non-financial assets the BPM5 has adopted aconvention that results in the imputation of financialassets. An example of this is land, which (by conven-tion) is generally considered to be owned by a residententity. If a nonresident legally owns land, then thenonresident is considered to have a financial claim on aresident entity that in turn owns the land. Anotherexample, is that goods transferred under a financiallease arrangement are presumed to have changed

ownership and, thus, involve the imputation of a fi-nancial asset for the lessor and a liability for the lessee.

The following changes in financial assets should ac-cording to the BPM5 §310, not be recorded as transac-tions in the financial account:

1. Allocation or cancellation of Special Drawing Rights(SDRs) (see chapter 11.4.2). The impact of the allo-cation or cancellation of SDRs on a country's re-serves may be determined from an analysis of the«reserve» components of the International Invest-ment Position statement.

2. Monetization or demonization of gold. Gold can beheld as a commodity (non-monetary gold) or as afinancial asset (monetary gold). Changes in hold-ings of monetary gold resulting from the reclassifi-cation of a given stock of gold should not be re-corded in the Balance of Payments.

3. Valuation changes. Changes in the price of an assetand changes in exchange rates lead to valuationchanges. Unrealised valuation changes are not in-cluded in the Balance of Payments, as they do not

47


represent transactions. However, if a transactiontakes place that realises the valuation change thenthe resulting capital gains or losses are reflectedimplicitly in the Balance of Payments as part of thevalue of the transaction.

4. Write-offs. Valuation changes as a result of write-offoccur if a debtor is unable or unwilling to make apartial or full repayment of a claim against thedebtor. Such write-offs should be regarded as un-realised capital loss and are therefore not includedin the Balance of Payments. When the creditor for-gives all or part of the debt owed by the debtor, thisdoes constitute a transaction that should be re-corded. This is discussed in more detail under theheading for capital transfers.

5. Classification changes. Changes arising from terri-torial changes (except purchase of land by embas-sies etc.), reclassification between portfolio and di-rect investment, or reclassifications associated withthe monetary authorities taking over or relinquishcontrol over banks' foreign exchange assets are ex-amples of the type of reclassification changes thatshould not be recorded in the Balance of Payments.

11.1. Direct Investment

Table 11.1.1. Direct Investment

Transactions in financial items should be recorded inthe financial account at market values at the time whena change of ownership occurs.

In the BPM5, the primary purpose of the classificationis to distinguish categories that exhibit different pat-terns of behaviour (BPM5 §328). The classification ofthe components of the capital and financial account inthe BPM5 is the same as in the SNA93. However, theprimary basis for the classification of the BPM5 is func-tional (i.e. direct investment, portfolio investment,other investment and reserve assets), while the SNA93classification is primarily by type of instrument(monetary gold, currency and deposits, loans etc.). TheNorwegian Balance of Payments tables follow to a largeextent the BPM5 layout. However, due to the integra-tion of the Norwegian Balance of Payments in the Na-tional Accounts, both dimensions are reflected in thebasic file structure.

In the Norwegian Balance of Payments, the figures ofthe financial account are published on a net basis, i.e.as acquisition less sales for each type of assets, andcorrespondingly acquisition less sales for each type ofliability. The detailed database includes, however,gross figures to a certain degree.

Mill. NOK

Direct investment abroad (asset)Equity capitalReinvested earningsOther capitalclaims on affiliated enterprises, loansclaims on affiliated enterprises, other capital- liabilities to affiliated enterprises

Direct investment in Norway (liability)Equity capitalReinvested earningsOther capitalliability to direct investor, loansliability to direct investor, other capitalclaims on direct investor

Financialinstrument

7151271512

714097170271409

7151271512

714097170271409

Purpose

4546

454547

4546

454547

1992

-747712

-3176

1088629ND

-41522633

-8633

179355ND

1993

50966771

-1467

-23802172

ND

703412494-7307

175196ND

1994

1532872843037

37961211

ND

1959510324073

14587-97ND

1995

18130122494003

1921-43ND

1526430125101

6728423ND

1996

36788243294478

11489951

4459

20618158492931

-1013464

-2387

1997

28634124332984

1352888

399

25518200123606

3204146

1450

Direct investment is defined as a cross-border financialinvestment made by an investor for the purpose ofacquiring a lasting interest in a foreign enterprise, andexerting a degree of influence (by owning 10 per centor more of the ordinary shares) on that enterprise'soperations. The establishment of a subsidiary abroad isan example of a direct investment. Direct investment isnot recorded on a strict asset / liability basis, but isinstead recorded on a directional basis, i.e. direct in-vestment abroad and foreign direct investment in thedomestic economy. Capital invested by a direct invest-ment enterprise in its direct investor («reverse invest-ment») is regarded as an offset to the capital investedby a direct investor. This kind of «desinvestment» is

identified separately in the Norwegian Balance of Pay-ments from the year 1995 onwards. Direct investmentis broken down into equity capital, reinvested earnings,and other capital (BPM5 §330). Equity capital com-prises equity in branches, all shares in subsidiaries andassociates and other capital contributions. Reinvestedearnings consist of the direct investor's share (in pro-portion to direct equity participation) of earnings notdistributed as dividends to the direct investor (BPM5§369). Other direct investment capital covers the bor-rowing and lending of funds, including debt securitiesand suppliers' credits, between direct investors andsubsidiaries, branches and associates (BPM5 §370).

48


No distinction is made between short- and long-terminvestment.

When a nonresident holds less than 10 per cent of theshares of an enterprise as a portfolio investment andsubsequently acquires additional shares resulting in adirect investment interest (10 per cent or more), onlythe purchase of additional shares should be recorded asa direct investment transaction. The holdings that wereacquired previously should not be recorded in the Bal-ance of Payments, but should rather be reflected as areclassification from portfolio investment to direct in-vestment in the International Investment Position(BPM5 §374).

Direct investment transactions are reported by NorgesBank. The ITRS reports equity capital and other directinvestment capital, while reinvested earnings are re-ported separately on paper. The treatment of rein-vested earnings is discussed in detail under the headingfor "income". The flows reported from the ITRS andthe stocks reported in the special direct investmentsurvey conducted by Norges Bank are not integratedwith each other. Changes in stocks from the surveycannot be decomposed as transactions from the ITRSand other valuation changes. However, informationfrom the survey on direct investment companies is, tosome extent, used to classify the flows registered in theITRS as direct investment transactions. The direct in-vestment transactions are reported with the code forthe domestic sector, and in some cases the domesticindustry involved.

11.2 Portfolio investmentPortfolio investment covers transactions in equities,other securities, and financial derivatives, except wherethese transactions relate to direct investment or reserveassets category. The essential characteristic of instru-ments that are classified as portfolio investment, is thatthey are traded or tradable. Portfolio investment is firstclassified as asset or liability. Within this asset / liabi-lity classification, portfolio investment is classified bytype of instrument.

Table 11.2.1. Portfolio Investment - Equities

In the Norwegian Balance of Payments, the BankingStatistics and the ITRS, both compiled by Norges Bank,are used to establish the portfolio investment compo-nent of the financial account. The Banking Statisticsare used to calculate the transactions in assets andliabilities for Norges Bank, state lending institutionsand commercial and savings banks. The Banking Sta-tistics report stocks of assets and liabilities at the end ofeach month. The changes in stocks are calculated andare either recorded directly as transactions or, for someinstruments, adjusted for valuation changes due toprice and exchange rate fluctuations as reported byNorges Bank, before recorded as transactions. It is rec-ognised that it is a simplification to treat changes instocks as transactions, but this is conducted only forinstruments where there is no information on suchvaluation changes available. Norges Bank calculatesvaluation changes due to exchange rate changes forcertain instruments and these changes are reported aspart of the monthly reporting to Statistics Norway.Valuation changes other than exchange rate changesare not calculated except for changes in prices on in-struments held by Norges Bank itself. Valuationchanges not due to transactions are discussed in moredetail under the heading for revaluation.

One consequence of using changes in stocks as trans-actions, is that the figures from the Banking Statisticsare recorded as net figures. For other domestic sectorsthe ITRS reports gross figures, i.e. purchase and saleare reported separately.

The use of data from the Banking Statistics in replace-ment of ITRS data, will be evaluated in the future.

11.2.1. EquitiesShares or similar documents usually denote ownershipof equity. The ownership of trusts, mutual funds, andother similar investments also represent equity invest-ment, regardless of the types of investment made bythe trust or the fund (BPM5 §388).

Mill. NOK

EquitiesAssetsGeneral governmentBanksOther sectors

LiabilitiesBanksOther sectors

Financialinstrument

715127151271512

7151271512

Purpose

404040

4040

1992

277400

2774

4860-5775437

1993

8770

-9501827

272810821646

1994

-1409-5

458-1862

4655119

4536

1995

23430

2612082

398312432740

1996

7595-1

-3397935

-14391424

-2863

1997

200784

-1220086

-8068-586

-7482

For transactions in shares where state lending institu-tions act as creditors (i.e. an asset for Norway) thechanges in stocks from the Banking Statistics are re-corded as transactions.

The Banking Statistics are not able to distinguish be-tween direct investment and portfolio investment fortransactions where commercial and savings banks act ascreditors. However, the ITRS reports transactions in

49


shares with specifications for direct investment andportfolio investment. The data for direct investmentfrom the ITRS are recorded under direct investment,and the changes in stocks from the Banking Statisticsare reduced by this direct investment figure and theresidual is recorded as portfolio investment. As a result,the total transactions in shares (direct investment plusportfolio investment) for the commercial and savingsbanks are equal to the changes in stocks from theBanking Statistics. For transactions in shares wherecommercial and saving banks act as debtors (i.e. liabil-ity to Norway), the changes in stocks from the BankingStatistics are not adjusted, but recorded directly asportfolio investment.

For other sectors than the banking sector, the ITRSreports transactions in shares directly both for assetsand for liabilities. These transactions are reported with

the code for the domestic sector and in some cases forthe domestic industry.

11.2.2. Bonds and Money Market InstrumentsBonds include debt securities with an original contrac-tual maturity of more than one year. Transactions relat-ing to issues, redemptions, purchase / sales and theoffset to interest accrued but not due for payments,should be recorded in the Balance of Payments. Moneymarket instruments are debt securities that are issuedwith a maturity of one year or less. Included are Treas-ury bills, commercial paper, bankers' acceptances,short-term negotiable certificates of deposits. As withbonds and notes, entries should be recorded for trans-actions relating to the issue, purchase and sale, andredemption of money market instruments, and as anoffset to interest income accrued but not due for pay-ment on these instruments.

Table 11.2.2. Portfolio Investment - Bonds and Money Market Instruments

Mi!!. NOK

Bonds and other securitiesAssetsBond and notesMonetary authoritiesBanksOther sectors

Money market instrumentsBanksOther sectors

LiabilitiesBond and notesMonetary authoritiesBanksOther sectors

Money market instrumentsGeneral governmentBanksOther sectors

Financialinstrument

743907133071330

7131171311

713307133071330

713117131171311

1992

94829583

011125-1542

-101246

-347

5143174

22092-4113

-14805

-2660-850-529

-1281

1993

-156932005

0-73469351

-17698-246

-17452

-11064-987710280

-12948-7209

-1187-710

96-573

1994

-5464-11896

0-2832-9064

643215814851

-8311-8649-4361-4681

393

338732

-152-242

1995

2004118520

0611

17909

15211392

129

39-7171-1540-2728-2903

72103254

563900

1996

557246147245157

317813137

-57481173

-6921

22108767

-111397608

12298

-6557-4215

-26-2316

1997

100784101041810604373

15608

-257-38553598

2641027209

-133792248018108

-7993005

-31-3773

Transactions in Treasury notes (assets for NorgesBank) and other bonds and securities where NorgesBank acts as creditor are included in the internationalreserves. An exception to this is the transactions in theNorwegian Petroleum Fund which are recorded as partof portfolio investment. The Banking Statistics do notidentify separately the Norwegian Petroleum Fund. Thetotal balance of bonds from the Banking Statistics thusincludes both the international reserves and the Petro-leum Fund. The transactions reported by the ITRS areused to identify the transactions related to the Petro-leum Fund, which reduce the international reservesand are recorded as portfolio investment. Up to the endof 1997 the Petroleum Fund was only invested inbonds, from 1998 the fund will also invest in shares.It has been decided that the Norwegian PetroleumFund in statistical terms will not be shown as part ofNorges Bank's assets. Instead, it will be presented as

part of the balance sheet of the Central Government.Accordingly, the international transactions of the Petro-leum Fund will be part of governmental internationaltransactions.

For transactions in bonds by state lending institutions,the changes in stocks from the Banking Statistics areadjusted for valuation changes on the asset side only.On the liability side, the changes in stocks from theBanking Statistics are recorded as transactions.

In cases where commercial and savings banks act ascreditors, transactions in bonds and other securities arerecorded as changes in stocks from the Banking Statis-tics. Bonds and other securities are recorded as sepa-rate financial instruments. The ITRS reports a total forall sectors'(including banks) transactions in bonds andsecurities without specifying the sectors acting as credi-

50


tors. The reason is that it is difficult to identify the realcreditor, since many transactors use agents (banks,security dealers, brokers etc.) acting on their behalf.These agents appear as creditors when the transactionsare reported to the ITRS giving a misleading picture ofthe allocation of creditors on domestic institutionalsectors. The total reported from the ITRS is reduced bythe figures from the Banking Statistics and the residualis recorded as transactions in bonds and other securi-ties unspecified on sector.

On the liability side, transactions in bonds and securi-ties by the banking sector are calculated as the changein stocks from the Banking Statistics adjusted for re-valuation changes reported from the ITRS. Transac-tions on the liability side by other sectors than thebanking sector are reported by the ITRS specifying thedomestic sector and in some cases the domestic indus-try involved.

A distinction is made in the Norwegian Balance ofPayments between the first issue of bonds and notesand second-hand purchases and sales of these instru-ments. The purchases and sales do not influence thetotal liability for the debtor, but in the cases wherebonds (or other securities) are sold from (to) a residentcreditor to (from) a nonresident creditor, the relation-ship with the rest of the world is changed. This changeshould be reflected in the Balance of Payments. Twoseparate codes are applied for first issue and purchasesand sales. The codes are part of the classification offinancial purpose. The code for first issues is restrictedto the situations when the debtor sector is directly in-volved in the transaction either by issuing the bond or

Table 11.2.3. Portfolio Investment - Financial Derivatives

by redemption. The code for purchases and sale will onthe other hand include only the cases when the debtorsector is not actively involved in the transactions. Theintention behind this distinction is that it might bepossible to utilise this information when the financialaccount component of the National Accounts is devel-oped. The distinction between first issues and pur-chases and sales is only made for those institutionalsectors where the ITRS is used as the main source. TheBanking Statistics do not make this distinction, thestock data include, however, both first issues and netsales.

11.2.3. Financial DerivativesFinancial derivatives may be subdivided into optionsand warrants and other derivatives. Options are finan-cial instruments that provide one party with the right,but not the obligation, to buy or sell a specific financialor real asset for a predetermined price from anotherparty. Derivatives other than options typically involvecontracts in which two parties agree to exchangespecified assets, either real or financial, at some futurepoints in time. This include forward foreign exchangecontracts, futures and currency swaps. The instrument,which is a contract, may be tradable and have a marketvalue. When that is the case, the characteristics of theinstrument as a contingent asset or liability change,and is therefore treated as an actual financial asset orliability in the financial account (BPM5 §392). Trans-actions in derivatives are treated as separate transac-tions rather than being included as integral parts ofunderlying transactions to which they may be linked ashedges.

Mill. NOK

Financial derivativesAssetsMonetary authoritiesGeneral governmentBanksOther sectors

LiabilitiesMonetary authoritiesGeneral governmentBanksOther sectors

Financialinstrument

71350713507135071350

71350713507135071350

1992

NDNDNDND

NDNDNDND

1993

NDNDNDND

NDNDNDND

1994

NDNDNDND

NDNDNDND

1995

NDNDNDND

NDNDNDND

1996

414135

0-56335

657217

035783

1997

623150

279329

898195

0486217

Transactions in financial derivatives are recorded sepa-rately from the year 1996 and onwards. For the yearsprior to 1995, transactions in financial derivatives areincluded as other investment. The ITRS is the sourcefor all sectors for recording transactions in financial

derivatives. The Banking Statistics do not, at present,include financial derivatives. Plans are, however, madeto collect information on financial derivatives using aspecial survey.

51


11.3. Other InvestmentOther investment is a residual category which includesall financial transactions not covered in direct invest-ment, portfolio investment and reserve assets.

Other investment, assets and liabilities, are like portfo-lio investment classified primarily on an instrumentbasis. In contrast to both direct investment and portfo-lio investment, a distinction between long term andshort term assets and liabilities is applied (BPM5§412). The instrument breakdown for other invest-ment, as is the case for portfolio investment, is closelylinked to the components in the SNA93. The instru-ment classification comprises trade credits, loans(including the use of IMF credit and loans from theIMF), currency and deposits and other assets and li-abilities (e.g., miscellaneous accounts receivable andpayable).

11.3.1. Trade CreditsTrade credits refer to assets and liabilities that arisewhen payments for goods and services are made at adifferent time from the change of ownership of theunderlying goods or services (BPM5 §414). There aretwo types of trade credit assets; prepayments on im-ports and trade credit extended on exports. Tradecredit liabilities arise from the prepayment of exportsor trade credit received on imports. Trade credit mayeither be measured directly by approaching enterprisesreceiving or extending trade credits, or indirectly. Indi-rect ways of measurement include the estimation oftrade credits as the difference between actual importsand exports from the External Trade Statistics and thepayments registered in the ITRS.

Table 11.3.1.

Mill. NOK

Trade creditsAssetsLiabilities

Other Investment - Trade Credits

Financialinstrument

7170171701

1992

-10451-200

1993

-14722-6815

1994

-18037-7101

1995

-10922-46

1996

-7675-252

1997

-44201086

In the Norwegian Balance of Payments, trade creditsare calculated as the difference between the exportsand imports of some specified goods from the ExternalTrade Statistics (or other sources) and the correspond-ing payments in the ITRS. This method is recognised inboth the BPM5 and the SNA93 (SNA93 §14.136) asone possible method of calculating trade credits.The difference related to exports of goods is recordedas an asset for Norway, while the difference related toimports is recorded as a liability for Norway.

The method is applied on the following products:

Oil and Gas.The difference between the payments for exports asrecorded by the ITRS and the transaction values of theETS, is recorded as trade credits. The difference be-tween the two statistics is calculated separately forpublic and private enterprises. Adjustments are madefor re-imports of oil and gas, separation costs and partof the pipeline export before recorded as a trade credit.The adjustment for re-imports reflects that the ETSinclude oil and gas transported to Teeside in UK intheir exports figure and record it as an import when itis delivered back to Norway. The data from the ITRSdo not include these export and import figures. This isprobably an example of a case where the ETS shouldhave been adjusted as no change in ownership in real-ity has taken place. The Balance of Payments and theNational Accounts have chosen to follow the samepractice as the ETS in order not to publish two differ-ent figures for the exports of oil and gas. The ITRS is

adjusted for payments for separation costs on UK territory, as this activity is not identified as Norwegian pro-duction.

Similarly, payments for pipeline exports are deductedfrom the ITRS data to reach the f.o.b. value of the oiland gas, before the trade credit on oil and gas is esti-mated. All these adjustments can be seen as an attemptto put the two statistical sources on an equal footingbefore the difference between them is calculated.

Ships and PlatformsThe difference between the transaction values of theETS and the payments of the ITRS is recorded as atrade credit. The trade credits due to the differencerelated to exports of new ships and platforms are allo-cated to the shipbuilding industry, while the differ-ences that arise for exports of used ships together withthe imports of both new and used ships are allocated tothe shipping industry. The differences related to theexports of old platforms together with the imports ofnew and used platforms are allocated to the oil drillingindustry.

AeroplanesThe difference between the figures from the ETS andthe payments from the ITRS is recorded as a tradecredit. This method is not applied on aeroplanes ex-ported or imported by SAS, due to the special treat-ment that SAS is given in the Balance of Payments andin the National Accounts. The method thus applies toother private entities.

52


Air TransportThe difference between the figures reported from theITRS and the exports figures calculated by StatisticsNorway, is recorded as a trade credit. There is no directinformation on the distribution of the trade credits toSAS and other companies. It is, however, assumed thatSAS is involved in a majority of these resident - non-resident transactions, and the trade credits are there-fore allocated to the domestic institutional sector; pub-lic owned enterprises.

Telecommunication ServicesThe differences between the data reported from theITRS and the data estimated in Statistics Norway arerecorded as trade credit, and allocated to public ownedenterprises in the communication industry. As the mar-ket for telecommunication services is being liberalised, itwill become increasingly difficult to specify the domesticsector.

ElectricityExports of electricity are specified in the National Ac-counts tables for exports. Until recently, the units ex-porting electricity were all publicly owned. The differ-ence between the payments reported from Norges Bankand the data in the External Trade Statistics has there-fore been calculated and recorded as trade credit underthe sector for publicly owned enterprises. After theliberalisation of the market for electricity, it has be-come more difficult to specify the sector, and this cal-culation will probably not be continued in the future.""Instead it will be part of the general difference between

Table 11.3.2. Other Investment - Loans

data from Norges Bank and from the External TradeStatistics relating to merchandise.

Goods for ProcessingEven though the BPM5 recommends that goods forprocessing should be recorded on a gross basis andspecified separately, this is not followed in the Norwe-gian Balance of Payments. The transactions are in-cluded in the External Trade Statistics on a gross basis,however, the data are considered to be unreliable.Therefore, these transactions are not specified in theBalance of Payments, but included in the total figurefor exports and imports of goods. The ITRS reportsgoods for processing on a net basis. The differencebetween the net figure from the ITRS and the ETSfigures for some selected processed goods is recordedas a trade credit.

11.3.2. LoansLoans comprise those financial assets created throughthe direct lending of funds by a creditor (lender) to adebtor (borrower) through an arrangement for whichthe lender receives no security evidencing the transac-tion or receive a non-negotiable document or instru-ment (BPM5 §415). Included are loans to finance trade(as distinct from trade credits), mortgages and otherloans and advances. Financial leases and repurchaseagreement are also considered as loans. Use of IMFcredit and loans from the IMF comprise a membercountry's drawings on the Fund, other than thosedrawn against the country's reserve tranche position. Adistinction between short-term and long-term loans ismade in the BPM5.

Mill. NOK

Loans

AssetsGeneral governmentBanksOther sectors


Financialinstrument

714097140971409

71409714097140971409

1992

-3115ND

-2924-191

124420

-94-310015636

1993

-7108674

-6896-886

27284689

-55-42012295

1994

141322

-821473

-88581311

-1234-1345-7590

1995

5932101030161906

12046-2108

13-498

14639

1996

473659

8042-3365

159059542

-2-3646729

1997

11131227

46146290

14019-4850

-31438

17434

The sources for calculating loans in the NorwegianBalance of Payments are the ITRS and the BankingStatistics from Norges Bank. The Banking Statistics donot distinguish between short-term and long-termloans.

For the assets of savings and commercial banks, thetotal change in stocks from the Banking Statistics isadjusted for revaluation and thereby constitutes thetotal transactions. However, a distinction betweenshort-term and long-term loans is made by using in-formation from the ITRS. Long-term loans reportedfrom the ITRS are recorded directly as such, while

short-term loans are calculated as a residual, i.e. thetotal change in stocks from the Banking Statistics isreduced with figures for long-term loans from theITRS, adjusted for revaluation and recorded as short-term loans. The same method is applied on both assetsand liabilities forståte lending institutions.

Transactions by savings and commercial banks in loans,liabilities, are calculated as the change in stocks fromthe Banking Statistics adjusted for revaluation changesreported from the ITRS. No distinctions is made be-tween long-term and short-term loans.

53


Loans, assets, for Norges Bank, are included in the for-eign reserves. For Norges Bank, the transactions inloans, liabilities, are calculated as the change in stocksfrom the Banking Statistics adjusted for revaluationfrom the ITRS. The maturity of these transactions isdefined as short-term.For loans, assets and liabilities, for other sectors thanthe banking sector, the ITRS reports gross transactionsdirectly and a distinction is made between short-termand long-term loans. It is, however, likely that it will bedifficult for the ITRS to maintain this distinction in thefuture. The distinction has been made using informa-tion about the types of loans given. It has, however,become more common to trade loans, so what thedebtor regards as a long-term loan may be viewed as ashort-term investment by the creditor. The BPM5 alsoregards the maturity distinction as less important thanin the previous manual. For previous years, StatisticsNorway received information from the Ministry of Fi-nance about loans from the public sector. However,

Table 11.3.3. Other Investment - Currency and Deposits

since Norges Bank already collects these data throughthe ITRS, Norges Bank now checks their figures againstthe information from the Ministry of Finance, and thedata for the public sector in the Balance of Paymentsare now reported directly from the ITRS.

11.3.3. Currency and DepositsCurrency consists of notes and coins in circulation.Deposits comprise both transferable and other deposits,but exclude negotiable certificates of deposit which areclassified as part of portfolio investment because oftheir tradable nature. Transferable deposits consist ofdeposits that are exchangeable in demand at par with-out restriction or penalty, freely transferable by checkor giro order and otherwise commonly used to makepayments.

Deposits may be denominated in domestic or foreigncurrencies. Other deposits include all claims reflectingevidence of deposit other than transferable deposits.

Mill. NOK

Currency and depositsAssetsGeneral governmentBanksOther sectors

LiabilitiesMonetary authoritiesBanks

Financialinstrument

71210,7122971210,7122971210,71229

7122971229

1992

7565289

7399-123

-153004520

-19820

1993

-24265-164

-21017-3084

-1667-41372470

1994

5735254

43551126

-2561-77

-2484

1995

-2874-1

-51042231

2980205

2775

1996

-1498-511-636-351

5570045

55655

1997

-377529

2311-6115

22943-125

23068

The Banking Statistics and the ITRS are used as sourcesto calculate transactions in currency and deposits. ForNorges Bank, transactions in currency and deposits areincluded in international reserves.

For savings and commercial banks the transactions arerecorded as the change in stocks in currencies from theBanking Statistics adjusted for revaluation changesreported by the ITRS. Regarding deposits, Norges Bankand the savings and commercial banks act as bothcreditors and debtors, other sectors appear only ascreditors. For the savings and commercial banks thetransactions in deposits are calculated as the change instocks from the Banking Statistics adjusted for revalua-tion changes from the ITRS. This method is applied onboth asset and liabilities. For other sectors gross trans-actions in deposits are reported from the ITRS.

11.3.4. Other Investment Assets and LiabilitiesOther assets and liabilities is a residual item that in-cludes all external finical assets and liabilities not re-corded elsewhere in the financial account. Among thetypes of assets and liabilities that are in principle re-corded in this item are:- Households' equity in life insurance and pension

funds. Premiums payable should be recorded as anincrease in policy-holders' claim on life insurance andpension funds, while claims payable should be re-corded as a withdrawal of investment.- Capital subscriptions to international monetary or-ganisations (grants are recorded as transfer).- Miscellaneous accounts receivable and payable, forexample, those relating to interest payments in arrears,loan payments in arrears, wages and salaries outstand-ing, prepayments of insurance premiums taxes out-standing etc.

54


Table 11.3.4. Other Investment

Mill. NOK

AssetsGeneral governmentBanksOther sectors


Financialinstrument

717027170271702

71702717027170271702

1992

3706-6

1313581

45603446

1411702

1993

2128-48

-4402616

-35986

2-408-615

1994

9726-204374

9556

606-433

38328673

1995

2185-26

-6222833

-2889-2179

7232

-949

1996

3549-4

3953158

-111112

-1685

-907

1997

11041-7

18289220

-866-763

01467

-1570

The sources for calculating other investment assets andliabilities, are the Banking Statistics and the ITRS. Thedata for other investment from the Banking Statisticsinclude income accrued but not due for payment on theasset side, and expenses accrued but not due for pay-ment on the liability side. The data for other invest-ment reported from the ITRS include transactions notrecorded elsewhere in the system. For Norges Banktransactions in other investment assets and liabilitiesare calculated as the change in stocks from the BankingStatistics. On the asset side, the calculation includes thechange in stock of shares. These are the shares thatNorges Bank has been assigned in the Bank for Inter-national Settlements (BIS). Norges Bank was assigned8000 shares worth 2500 Gold Franc each. The value ofthese shares has not been changed since 1970, so inpractice, since no adjustment is made due to revalua-tion changes, no transactions are calculated as a resultof the change in stocks of shares. The maturity of theseassets and liabilities is defined as short-term.

The total change in stocks from the Banking Statistics isrecorded as the transactions by the savings and com-mercial banks. The maturity distinction is made byusing information on long-term investment from theITRS. The change in stocks is reduced with these long-

11.4. Reserve Assets

Table 11.4.1. Reserve Assets

term transactions and recorded as short-term transac-tions. For transactions in other investments, assets andliabilities, by state lending institutions, the change instocks from the Banking Statistics is recorded as thetransactions. For other domestic sectors than the bank-ing sector, the ITRS reports transactions directly, dis-tinguishing between long-term and short-term transac-tions.

Also included as other investments, are transactionsresulting from the recording of life insurance. Premi-ums minus the service charges and claims payable arerecorded in the financial account. The premiums payableand claims receivable under life insurance policies oftencontain a substantial investment element, with the pay-ment of premiums viewed as savings by the insured andclaims as withdrawal of these savings. The life insurancepolicyholder is therefore considered to have a claim onthe life insurance enterprise. In the Norwegian Balanceof Payments, the investment element is estimated to 85per cent of the premiums. The claims paid to nonresi-dents are recorded as a reduction in liabilities for theinsurance sector, while claims received from nonresi-dents are recorded, without specifying the domesticsector, as a reduction in assets.

Mill. NOK

Reserve assetsMonetary goldSpecial Drawing rightsReserve position in the IMFForeign exchangeCurrency and depositsBonds and notes

Other claims

Financialinstrument

711017110271103

71210,7122971315,7133071409, 71495

1992

-45430

-1580671

-133649730

ND

1993

582780

1535-776

-3802767930220

1994

20450

-267314

-482315754-8933

1995

44460

4212249

120411333

-10761

1996

416170

-610-202

-2806020

36689

1997

-292880

120854

323-1058

-29527

Reserve assets consist of those external assets that arereadily available to and controlled by monetaryauthorities for direct financing of payment imbalances,for indirectly regulating the magnitude of such imbal-ances through intervention in exchange markets to

affect the currency exchange rate and / or for otherpurposes. Included as reserve assets are monetary gold,SDRs, reserve position in the IMF, foreign exchangeassets (currency, deposits and securities) and otherclaims (BPM5 §424).

55


The main source for calculating transactions in reserveassets in the Norwegian Balance of Payments is theBanking Statistics.

The Norwegian Petroleum Fund, owned by the gov-ernment and administrated by Norges Bank, is notregarded as part of the reserve assets.

11.4.1. Monetary GoldMonetary gold is gold owned by the authorities andheld as a reserve asset. Other gold (non-monetarygold) should be treated as any other commodity.Transactions in monetary gold occur only betweenmonetary authorities and their counterparts in othereconomies or between monetary authorities and inter-national monetary organisations (BPM5 §438).

The value of monetary gold has been constant for along period of time in the Banking Statistics, no trans-actions are therefore recorded in the Balance of Pay-ments.

11.4.2 Special Drawing Rights (SDRs) and the ReservePosition in the International Monetary FundSDRs are international reserve assets created by theIMF to supplement other reserve assets that periodi-cally have been allocated to IMF members in propor-tion to their quotas. SDRs can be used, among othertransactions, to acquire foreign exchange, to settlefinancial obligations and to extend loans. Changes inthe SDR holdings can arise through transactions involv-ing SDRs or through allocation or cancellation. Trans-actions should be included in the Balance of Paymentswhile allocations / cancellations are reflected in theInternational Investment Position (BPM5 §440).

The reserve position in the IMF is the sum of the re-serve tranche purchases that a member draws uponand any indebtedness of the IMF (under a loan agree-ment) that is readily repayable to the member. Reservetrance purchases are purchases from the IMF of othercurrencies that do not cause the IMF holdings of amember's currency to exceed the member's quota(minus holdings that reflect the member's use of IMFcredit). A purchase from the IMF should be recorded asan increase in foreign exchange holdings and a de-crease in the reserve position in the IMF (BPM5 §441).

Transactions in SDRs, and the reserve position in theIMF, are calculated as the change in stocks from theBanking Statistics adjusted for valuation changes fromthe ITRS. The reserve position in the IMF is calculatedin the Banking Statistics as the Norwegian quota in theIMF (asset) minus the IMS's balance of Norwegiankroner (liability).

11.4.3. Foreign Exchange and Other ClaimsForeign exchange includes monetary authorities' claimson nonresidents in the forms of currency, ECUs, bankdeposits, government securities, other bonds and notes,money market instruments, financial derivatives, equitysecurities, and nonmarketable claims arising from ar-rangements between central banks or governments(BPM5 §442). Other claims is a residual category cov-ering claims that are not included previously and thatmay constitute reserve assets in the form of currency,deposits or securities. For instance, the foreign ex-change component may not cover assets that are heldby banks and subject to the control of monetaryauthorities (BPM5 §443).

The Norwegian Balance of Payments includes transac-tions in Norges Bank's holdings of foreign currencies,deposits abroad, treasury bills, bonds, and loans(including loans to the IMF) as foreign exchange. Thechange in stocks in currencies from the Banking Statis-tics is recorded as transaction. Transactions in depositsare calculated as the change in stocks from the BankingStatistics adjusted for valuation changes from the ITRS.Transactions in Treasury notes are calculated as thechange in stocks from the Banking Statistics adjustedfor valuation changes from the ITRS. Transactions inbonds and other securities are calculated in the sameway, i.e. the change in stocks from the Banking Statis-tics is adjusted for valuation changes before recordedas transactions. This is the only case where the adjust-ment is made for unrealised valuation changes as wellas for realised valuation changes. Bonds and othersecurities are not distinguished separately for NorgesBank, but recorded as one instrument. Transactions inthe Norwegian Petroleum Fund are not regarded aspart of transactions in the international reserves, butpart of the portfolio investment. Transactions in loansare calculated as the change in stocks from the BankingStatistics adjusted for valuation changes from the ITRS.

56


11.5. Unallocated Financial Transactions andStatistical Errors

Table 11.5.1. Unallocated Financial Transactions and Statistical Errors

Mill. NOK

Unallocated Financial Transactionsand Statistical ErrorsInternal difference in ITRSExports and importsGovernment accountsBanking statisticsCompensation of employeesOther

Financialinstrument

74701,7470774701,74702

74701,(74330)Various

74701,74702

Purpose

94,9591939296

1992

24768

147565736

-404873301180186

1993

13083

223432558

-3696-95081180-206

1994

13959

598010930-3002-11571148

-60

1995

21881

244353914

-2644-46391094279

1996

19919

846-3437-305524350

967-248

1997

2644

29392-2547-2859

-218421100600

In calculations where the ITRS is replaced with datafrom other sources, the difference between the ITRSand the alternative source is calculated and recorded asa trade credit or as unallocated financial transactionsand statistical error on the financial account dependingon the nature of the transaction. The unallocated fi-nancial transactions and statistical errors in the Nor-wegian Balance of Payments can be grouped into fivemain categories: The internal differences in the ITRS,statistical errors due to other sources than the ITRSused for exports and imports, statistical errors thatarise when figures from the Government Accounts fortransfers replace the ITRS, statistical errors that arisewhen the Banking Statistics replace the ITRS and sta-tistical errors related to compensation of employees. Inaddition, errors may occur as a result of calculationerrors, coding errors etc. in the Balance of Paymentsproduction system.

Only the net figure for unallocated financial transac-tions and statistical errors is published. Some of theerrors that occur will often offset one another, the sizeof this net figure does therefore not necessarily provideany indication of the overall accuracy of the Balance ofPayments figures.

11.5.1. The Internal Difference in the ITRS.Since the ITRS is a closed system with self-balancingmechanisms, i.e. credit equals debit, in principle nostatistical errors and omissions will occur. A transactionbetween a resident and a nonresident registered in theITRS should in principle be recorded both as credit anddebit, and net balance should therefore be zero. Inpractice, however, this is not the case, the balance willalways show a net credit or a net debit. In addition,differences arise when transactions between residentsand residents or between nonresidents and nonresi-dents are included in the ITRS.

11.5.2. Statistical Errors related to Exports and Imports.When other sources than the ITRS are used to calculateexports, the difference between the ITRS and the alter-native source is in most cases recorded as a statisticalerror on the asset side, while differences arising whenalternative sources are used on the import side are

recorded on the liability side. The following items aregiven this treatment:

The External Trade Statistics is used as the main sourcefor exports and imports of merchandise. The differencebetween the ETS and the ITRS for exports and importsof goods is calculated and recorded as statistical error.It is assumed that the ETS figure for exports of goodsincludes payments for forwarding goods, the ITRS'figure for forwarding goods is therefore added to thepayment figure for exports of goods before the differ-ence is calculated. The ITRS registers payments fromNorway to nonresidents for transport of goods, whichinclude both payments for imports of goods and pay-ments for exports of goods. The imports of goods fromthe ETS are valued c.i.f., while it is assumed that thepayments for goods in the ITRS are f.o.b. The pay-ments for transport of imports of goods are thereforeadded to the payments for goods before the differencebetween the ETS and the ITRS is calculated. The ex-ports of goods, from the ETS are valued f.o.b., whilethe figures for exports of goods from the ITRS are as-sumed to include the transport element which alreadyhas been registered as a payment from Norway. TheITRS is therefore reduced before the difference be-tween the ITRS and ETS is calculated. It is not possiblefor the ITRS to distinguish the payments for transportrelated to the exports of goods from the payments fortransport related to the imports of goods, only a totalfor payments for transport is therefore reported. Adistributional key is then used to assign the paymentsto exports and imports. In 1996, 70% of the paymentsfor freight by railway, 75% of payments for freight byroad, 70% of the payments for sea-freight and 60% ofthe payments for air-freight were used to adjust thepayments for imports of goods from the ITRS. Conse-quently, the remaining payments were used to adjustthe payments for exports of goods from the ITRS. Thedistributional key is based on estimates made in Statis-tics Norway.

The problems related to the recording of merchantingwere elaborated in the description of the current ac-count. Briefly, the problem is that the difference be-tween the value of the goods when acquired and the

57


value when sold is negative. Assuming that the purposeof merchanting is profit-making, this difference shouldbe positive, at least over a longer time period. Due tothese data collection problems, merchanting is includedin unallocated financial transactions and errors andemissions.

The sources used to record oil drilling services andother services related to oil activities are the statisticson oil and gas activities compiled by Statistics Norway,supplemented with the ITRS from Norges Bank. Thedifference between the oil and gas statistics and thefigures reported from the ITRS is calculated as a netfigure (exports minus imports) and recorded as statisti-cal errors. Two different sectors and two different in-dustries are involved in these calculations, namelypublic and private enterprises in the industries for oilexploration and pipeline transport. It is not possible todistinguish these and the difference between the twosources is therefore not allocated to domestic sectorand industry. Included in the figures from the ITRS areseveral products such as insurance, repair, leasing of oilplatforms, and other unspecified products which can berelated to the oil activity. The same method is appliedon the difference related to the exports and imports ofgoods associated with oil and gas activities.

The exports of commission fees are calculated as 0.144per cent of the imports of goods from the External TradeStatistics, and the offsetting item is recorded as statisticalerror on the financial account.

A part of the calculations of exports of services relatedto the shipping industry, is to increase the credit sidefor transportation services provided by domestic opera-tors carrying goods either to or from Norway and set-tled in domestic currency (Norwegian kroner). Thesetransactions are not registered in the ITRS and thissupplementary item is currently based on estimatesmade in Statistics Norway. The offsetting item is re-corded as statistical error. Adjustments are also madefor the shipping industry's expenditures abroad. Theoffsetting item to the adjustment related to procure-ment of fuel and other goods in Norwegian ports byNorwegian carriers and settled in foreign currencies, isfound on the asset side, while the offsetting item to theadjustment associated with Norwegian operators' ex-penditures on repairs abroad paid in Norwegian kro-ner, is found on the liability side.

The data for travel reported by the ITRS, are supple-mented with estimates based on tourist statistics (i.e.,accommodation statistics, passenger transport statistics).The offsetting items to these adjustment estimates arerecorded as statistical error.

The ITRS report a total on income from abroad to thegovernment sector; "military defence". Income re-corded as military fees in the government accounts,

and information on consumption abroad by militarystaff are deducted from this total. The residual is re-corded on the financial account, on the asset side, asstatistical errors.

Information on remuneration for post to and fromabroad is included in the accounts from the NationalPost service and is used as exports and imports of postaland courier services. The difference between the datafrom the National Post service and the ITRS is recordedas statistical error.

In addition, differences may arise when the Balance ofPayments is integrated in the National Accounts. Theexports and imports figures may be altered when thesupply and use of products are balanced in the Na-tional Accounts. These corrections are incorporated inthe Balance of Payments and an offsetting item willnormally be recorded in the financial account as statis-tical errors.

11.5.3. Statistical Errors related to the use ofGovernment Accounts

In the Norwegian Balance of Payments, the figures forgovernment transfers to nonresidents are taken fromthe Government Accounts. Even though the Govern-ment Accounts distinguish between current and capitaltransfers, the ITRS is not able to make this distinction.The difference between the Government Accounts andthe ITRS for current and capital transfers is thereforenot calculated separately, but added together and re-corded in the financial accounts on the liability side asstatistical error. Up to 1993, the Government Accountswere the source for calculating transactions in bonds bythe public sector. The difference between the Govern-ment Accounts and the ITRS was included as statisticalerror. From 1994 and onwards the source for publicsector transactions in bonds has been the ITRS.

11.5.4. Statistical Errors related to FinancialTransactions of the Banking Sector

The Banking Statistics comprises the following sectors:Norges Bank, state lending institutions, and saving andcommercial banks. The Banking Statistics include fig-ures on the balance of foreign assets and liabilities forthese sectors, which are used in the financial accountof the Balance of Payments instead of the transactionfigures reported by the ITRS. The difference betweenthe Banking Statistics and the ITRS is calculated andrecorded as unallocated financial transactions and sta-tistical errors. The differences are calculated separatelyfor the different sectors and are also, in most cases,calculated separately for the different financial instru-ments.

11.5.5. Statistical errors related to Compensation ofEmployees

Compensation of employees from abroad to residents(credit) is an estimated figure. The ITRS does not sup-

58


ply any comparable figure and the whole amount istherefore also recorded as statistical error. The calcula-tions related to tax payments (credit and debit) wereassessed and altered from 1995. An analysis of the taxfigures reported from the ITRS concluded that the fig-ures include company tax, income tax and other duties(such as car registration duty). Compensation of em-ployees (credit and debit) is recorded gross, i.e. incometax is included. In order to avoid double recording oftax, the income tax element in the tax figure from theITRS is deducted. The ITRS can not provide any exactfigure for the income tax, but an estimate of 40 percent of the total tax is used. The tax figure, both creditand debit, is therefore reduced by 40 per cent, which isrecorded as «unallocated financial transactions andstatistical errors». This estimated share will be revisedregularly and alternative sources will be assessed.

11.5.6. OtherNet financial investment can be calculated either as thesum of all financial transactions in the financial ac-count or as the balance on current account adjusted forcapital transfers. Errors arise when the adjusted bal-ance on current account does not equal the balance onthe financial account. This type of error is due to errorsin the system such as coding errors or calculation er-rors. It is also likely that errors arise when the input isrounded from hundred thousands or thousands NOK tomillion NOK, which is the unit of account used in thesystem.

59


12. Revaluation

Table 11.5.2. Revaluation

Mill. NOK

RevaluationAssetsSpecial Drawing RightsReserve position in the IMFCurrency and depositsBonds and notesLoans, (incl. to the IMF)Other assets

LiabilitiesReserve position in the IMFDepositsMoney market instrumentsBondsLoansOther liabilities

Financialinstrument

7210272103

72210,7222972315,72330,72390

72409, 7249572702

721037222972311723307240972702

1992

21286205542

524180067202

90

24121ND

3980241

102989602

ND

1993

21683119848

373389618029

-7

32791ND

2262554

1561714358

ND

1994

-15566-68

-460-3294-8712 .-3188

156

-24196-399

-2403-535

-8721-12138

ND

1995

-7363-138-556

-1409-3461-2451

652

-1532987

-1900-157

-5966-7393

ND

1996

-3001-26

-171121

-1267-1388-270

2055-1251143

101-10481995

-11

1997

18966135744

420186805401-195

34046164

737416219859

15279-251

All changes in stocks not due to transactions are ex-cluded from the Balance of Payments. In addition totransactions, the value of real resources and financialitems is subject to changes resulting either from pricechanges, from changes in the exchange rates or fromother volum changes. Valuation changes of this kindare not included in the Balance of Payments, but areincluded in the International Investment Position(BPM5 §33). When there is a change in ownership andan asset is sold for a different price than when initiallyacquired, the difference (holding gain or loss) is implic-itly included in the Balance of Payments as part of thetransaction. This requires that market values are ap-plied when transactions are recorded.

Price changes and exchange rate changes are includedin the International Investment Position (IIP). The IIPis the balance sheet of the stock of external financialassets and liabilities. The change in the position fromthe beginning to the end of period is broken down intotransactions, price and exchange rate changes andother changes (BPM5 §466).

The financial account of the Balance of Paymentsmeasures transactions in assets and liabilities, however,revaluation mostly due to exchange rate changes plays

an important role in the compilation of the NorwegianBalance of Payments. The Banking Statistics are usedas the main source for calculating transactions byNorges Bank, State lending institutions and Commer-cial and Savings Banks. The Banking Statistics recordthe positions at the beginning and end of a given pe-riod. In order to derive an estimate for the transactionvalue, the change in positions is adjusted for valuationchanges.

Revaluations are reported by the ITRS from NorgesBank. On the asset side, the ITRS reports revaluationson loans and deposits covering all domestic sectors. Inaddition, valuation changes in financial instrumentswhen the central bank act as creditor, (i.e. for SDR,reserve position in the Fund, Treasury Notes, bonds,and loans to the IMF) are reported. The ITRS reportsvaluation changes, covering all domestic sectors, onloans, bonds and other securities. In addition changesin deposits for savings and commercial banks and forthe central bank, and changes in the reserve position inthe IMF are reported.

The valuation changes are calculated by deducting thetransactions during the month from the change in po-sition during a month. Norwegian banks report trans-

60


actions daily to the ITRS. These transactions are con-verted into Norwegian kroner by using thexlaily aver-age exchange rate. Transactions reported from foreignbanks or companies to the ITRS are converted intoNorwegian kroner by using the monthly average ex-change rate. The average exchange rate of the lastworkday of each month is used to convert the balances.The valuation changes are thus a residual between theopening balance, transactions and closing balance. Inpractice, this implies that the revaluations of depositsand loans for the banking sectors are calculated byapplying the daily average exchange rates used for

transactions. Revaluations of deposits for other sectorsare calculated by using the monthly average exchangerate, and revaluations for other sectors' loans use acombination of daily and monthly average exchangerate depending on how the transactions are reported.

Net revaluations, reported from the ITRS, are includedin the Norwegian tables for Balance of Payments inorder to publish an estimate of the net change in theNorwegian external assets during the accounting pe-riod.

61


13. The International Investment Position

The International Investment Position (IIP) shows, at agiven time, the stock of an economy's external financialassets and liabilities. The position at the end of a spe-cific period reflects financial transactions, valuationchanges (due to price or exchange rate changes) andother adjustments, all of which affect the level of assetsand liabilities, that occurred during the period (BPM5§463). Other adjustments include the allocation / can-cellation of SDRs, the monetization / demonetizationof gold, reclassifications, write-offs and measurementerrors. The net IIP of an economy, that is external as-sets minus external liabilities, shows what the economyowns in relation to what it owes. By definition nonresi-dent can not own real assets in an economy, and istherefore defined to have a financial claim on thateconomy. An economy's net worth is therefore equal toits net IIP plus its holdings of real assets.

The change in a country's IIP from one position in timeto another position in time can be explained in terms ofBalance of Payments transactions, price changes, ex-change rate changes and other adjustments. In order tofacilitate analysis of both the IIP and the Balance ofPayments international organisations encourage coun-tries to publish a table showing the reconciliation ofchanges in the IIP.

A breakdown of the IIP is not currently published inNorway. However, statistics covering Norwegian exter-nal assets and debt are published annually by StatisticsNorway (Finanstellingen). The statistics specify exter-nal assets and liabilities by financial instrument, do-mestic sector and industry, and country. The statisticsare normally published 10-11 months after the end of

a year. For 1996 the statistics for foreign external as-sets and liabilities show an increase in net asset of 36billion kroner. The change in net external assets is alsopublished in the Balance of Payments as net transac-tions adjusted for net revaluation. The Balance of Pay-ments has estimated that the change in net asset in1996 was 65 billion kroner. The difference between thetwo statistics is thus 29 billion kroner.

Several factors contribute to this difference. One factoris that the Statistics for external assets and liabilitiesuse face value on bonds and other securities, while theBalance of Payments record transaction values.

Another factor contributing to the difference is that theBalance of Payments includes reinvested earnings whilethe statistics for external assets and liabilities have notimplemented this item.

Different estimates for revaluation changes are othersources for deviations between the two statistics. Inaddition, transactions and the change in the balancesmay not have been recorded in the same year. This isespecially relevant for transactions and balancechanges that occur just before or just after the turn of ayear. In addition, measurement errors in the two sta-tistics will contribute to the difference.

At the moment, no attempt is made to fully harmonisethe two statistics. The change in net assets calculatedfrom the Balance of Payments is used as an early esti-mate until the statistics for foreign assets and liabilitiesare published.

62


14. Technical Solutions

The following paragraph gives a short description ofthe technical systems used to produce and publish theNorwegian Balance of Payments data. A detailed de-scription on how to operate these systems is availablein Norwegian.

The sources used in the Balance of Payments can bedivided into two main groups, the ITRS and other in-put. The ITRS is reported electronically and the dataare coded from the standard used in Norges Bank tothe classifications used in the National Accounts. A SASprogramme is developed to code the ITRS and tochange and update the codes. Input, other than theITRS, is registered manually and the same SAS pro-gramme is used for this procedure. The output of theSAS programme is flat files which are transferred to aUNIX server. The data are checked for invalid codesand then loaded into an ORACLE database calledFIIN_UR. The data related to the current account areentered in a table called FIIN_UR_UI, and the datarelated to the capital and financial account in a table

called FUNJJRJ3MVA. This database thus contains allinput used for calculating the various transactions inthe Balance of Payments and the Rest of the Worldaccounts of the National Accounts. The calculations areprogrammed in C with embedded SQL. A Windowsapplication programme for changing or implementingnew calculations has been developed usingQBE_VISION. The results of the calculations are storedin an ORACLE database called FUN. The data are en-tered into two tables with different structure. The datarelated to the current account are entered in a tablecalled FIIN_UI and the data related to the capital andfinancial account in a table called FIIN_OMVA. Theinput tables have the same structure as the result tablesexcept that the sources for the various input are givendifferent codes. In the result table the source is always900 which is the code for the institutional sector "Restof the World". The tables in FUN (results) and FIIN-UR(input) have the following structure:

Figure 14.1.

Example

#1

#2

#3

#4

ORACLE table FIINJJI

mot_sektor(receiving sector)

900

200

900

mot_fin_naer(receivingindustry)

62I

ut_inn_art(income item)

19947

13999

32229

34190

produkt(product)

621022

641115

bet_sektor(paying sector)

900

630

900

110

bet_fin_naer(paying

industry)

64I

kilde(source)

900

900

900

900

Value

X

X

X

X

Examples:#1 Exports, freight air transport#2 Imports, settlements post office#3 Income, interest, bank deposits, banks#4 Transfer, government sector

63


Figure 14.2.

Example

#1

#2

#3

#4

#5

ORACLE table FUN

deb_sektor(debtor sector)

710

900

710

900

110

_0MVA

deb_fin_naer(debtor industry)

endr_fin_kap_obj(Financial instru-

ment)36192

712291

715121

72409

74701

omva_art(Revaluation

type)

10

finans_fog(financialpurpose)

80

45

93

kre_sektor(creditor

sector)900

400

900

200

900

kre_fin_naer(creditorindustry)

kilde(Source)

900

900

900

900

900

Value

X

X

X

X

X

Examples:#1 Capital transfer, debt forgiveness,#2 Transaction deposit insurance, assets#3 Transaction, equity, direct investment, private enterprises, liabilities#4 Revaluation loans, banks assets#5 Statistical error, government transfers

The results are checked for invalid codes before thedata are stored in the ORACLE result tables and a pro-cedure is run to check that all input is included in atleast one calculation. Data for other domestic institu-tional sectors needed for the compilation of the Na-tional Accounts, are included in the same database.

Data on exports and imports of goods not included inthe ETS and exports and imports of services are sup-plied on an aggregated level to the quarterly nationalaccounts (KNR) and on detailed level to the yearlysupply and use tables of the National Accounts (NR-REA). Data on income and transfers are supplied to theyearly institutional sector accounts of the NationalAccounts. Data from the ETS are reported electroni-cally to KNR and NR-REA and are more detailed thanthe ETS data used in the Balance of Payments. TheBalance of Payments data are evaluated both in thequarterly and annual National Accounts systems and

the data can be revised based on various sources ofinformation such as information from counterpart sec-tors, information on production or information onprices (see chapter 3).

The revisions of the Balance of Payments data are im-plemented either in the SAS input system or as changesin calculations in order to ensure the consistency be-tween the current account and the capital and financialaccount.

The data, when approved, are transmitted to a FAMEtime-series database. The data, on a detailed level, aretransmitted to a database called URMND. Aggregatesare programmed on the basis of the data in URMNDand loaded in a database called URFORM. Tables pub-lished nationally and tables reported to internationalorganisations are thus reported from the FAME data-base URFORM.

64


Figure 14.3. Structure of the system

Transfer \:k

Coded and transferredin SAS

ETS and other input

Kh Input system in SAS

FIINJJR (input database) ORACLE

Calculations, (SQL, QBE-V)

FIIN (rest of the world, other sectors)

C y TransferBalancing

>7 Transfer I Balancing

NRJREA NR INS

65


ReferencesInternational Monetary Fund (1993):

Commission of the EuropeanCommunities, International MonetaryFund, Organisation for EconomicCo-operation and Development,United Nations, World Bank (1993):

Balance of Payments Manual fifth edition CBPM5).Washington

System of National Accounts (SNA-93).Brussels/Luxembourg, New York, Paris, Washington D.C.

EUROSTAT/Commission of theEuropean Communities (1996): European system of accounts (ESA 1995).

Brussels/Luxembourg

66


Balance of Payments

Current account. Million kroner

Appendix

1996 1997 96:1 96:2 96:3 96:4 97:1 97:2 97:3 97:4

Goods and services

Exports, total 414 265 447 580 99 308 98 919 103 217 112 821 108 757 109 975 114 188 114 660Goods 321 704 343 713 77 584 76 268 78139 89 713 85 160 84 068 85 025 89 460

Crude oil and natural gas 156 688 163 673 34 593 36 717 40 000 45 378 42 598 38 947 40 219 41909Ships 8 022 9 393 2 225 1 967 1 251 2 579 3 140 2 138 1 844 2 271Petroleum activities, various goods 1 141 1368 379 208 102 452 67 597 638 66Other goods 155 853 169 279 40 387 37 376 36 786 41 304 39 355 42 386 42 324 45 214

Services 92 561 103 867 21 724 22 651 25 078 23 108 23 597 25 907 29 163 25 200Gross receipts, shipping 46 641 52 787 11 398 11 664 11 750 11 829 12165 13 759 13 688 13175Petroleum activities, various services. . . . 714 752 177 177 180 180 186 188 185 193Oil drilling etc 1 543 1 925 359 353 409 422 429 451 534 511Pipeline transport 3 424 3 987 736 685 855 1 148 1 076 890 848 1 173Travel 15 221 15 802 3 195 3 773 5 546 2 707 3 177 3 926 5 774 2 925Transport and communication 8 675 8 781 1 877 2 227 2 299 2 272 1 895 2 063 2 940 1 883Financial and business services 12 836 15 694 2 984 2 989 3 204 3 659 3 693 3 550 4 237 4 214Other services 3 507 4139 998 783 835 891 976 1 080 957 1 126

Imports, total 326 487 371 024 76 409 75 902 82 051 92 125 82 019 93 518 96 268 99 219Goods 242 512 267 423 58 085 56 200 58 186 70 041 61 212 67 950 66 199 72 062

Ships 6 325 14 041 1 799 652 1 494 2 380 5 388 2 818 3 784 2 051Petroleum activities, various goods 11 331 11 970 1 977 1 688 2 220 5 446 2 017 4 328 2 674 2 951Other goods 224 856 241 412 54 309 53 860 54 472 62 215 53 807 60 804 59 741 67 060

Services 83 975 103 601 18 324 19 702 23 865 22 084 20 807 25 568 30 069 27 157Operating costs shipping, excl. bunkers . . 19 957 24 085 4 724 4 950 4 863 5 420 5 441 5 987 6 388 6 269Petroleum activities, various services. . . . 4140 5685 795 1092 1095 1158 799 2235 1613 1038Operating costs oil drilling, excl. bunkers.. 1228 1602 360 288 306 274 215 394 512 481Travel 29 129 31 940 5 407 6 581 10 255 6 886 5 620 7 399 11 184 7737Transport and communication 2 862 3 427 676 708 795 683 862 799 841 925Financial and business services 14 220 19 386 3 278 3 214 3 467 4 261 4 391 4 645 4 749 5 601Other services 12 439 17 476 3 084 2 869 3 084 3 402 3 479 4 109 4 782 5106

Balance of goods and services1 87 778 76 556 22 899 23 017 21 166 20 696 26 738 16 457 17 920 15 441Balance of goods 79 192 76 290 19 499 20 068 19 953 19 672 23 948 16 118 18 826 17 398Balance of services 8 586 266 3 400 2 949 1 213 1 024 2 790 339 -906 -1 957

Income and current transfers etc.

From abroad 39 967 45 636 10 814 9 705 9 460 9 988 10 599 12 215 10 962 11 860Compensation of employees 1 200 1 200 300 300 300 300 300 300 300 300Interest 23 113 28 775 6 165 5 473 5 451 6 024 6 254 7 977 6 797 7 747Dividends etc 2 052 3 377 1 064 405 280 303 241 1 126 1 060 950Reinvested earnings 4 478 2 984 580 1 251 1 342 1 305 1 377 454 511 642Current transfers 9 124 9 300 2 705 2 276 2 087 2 056 2 427 2 358 2 294 2 221

To abroad 59179 65 418 14 475 15168 12 471 17 065 15 997 17 337 14 522 17 562Compensation of employees 3 443 3 910 828 844 847 924 893 976 1 040 1 001Interest 22 927 28 324 6 067 6 049 3 876 6 935 7 436 7 946 5 646 7 296Dividends etc 11 063 10 183 2 915 4 888 2 777 483 2 984 4 859 954 1 386Reinvested earnings 2 931 3 606 423 -993 689 2 812 340 -932 2 300 1 898Current transfers from general government . 7 200 7 474 1179 1515 1548 2 958 1318 1569 1635 2 952Other current transfers 11 615 11 921 3 063 2 865 2 734 2 953 3 026 2 919 2 947 3 029

Balance of income and current transfers1. . -19 212 -19 782 -3 661 -5 463 -3 011 -7 077 -5 398 -5 122 -3 560 -5 702Comp. of employees and inv. income, net . . -9 521 -9 687 -2 124 -3 359 -816 -3 222 -3 481 -2 992 -1 272 -1 942Current transfers, net -9 691 -10 095 -1 537 -2 104 -2 195 -3 855 - -1 917 -2 130 -2 288 -3 760

Current account balance1 68 566 56 774 19 238 17 554 18155 13 619 21 340 11 335 14 360 9 739

Capitaltransferstoabroad.net 820 1 277 -24 37 72 735 416 279 298 284

Net lending 67 746 55 497 19 262 17 517 18 083 12 884 20 924 11 056 14 062 9 455

Memo: Net freight income, shipping 17 970 17 884 4 729 4 693 4 695 3 853 4 274 5 229 4 354 4 027

1 Positive figures mean surplus, negative figures mean deficit.

67


Balance of Payments

Current account. Million kroner

1994 1995 94:1 94:2 94:3 94:4 95:1 95:2 95:3 95:4

Goods and services

Exports, total 333 200 353 425 78 712 80 693 81 341 92 454 88 670 86 308 87 916 90 531Goods 245 565 267 234 57 416 59 899 59 341 68 909 68 092 64 860 64 605 69 677

Crude oil and natural gas 106 440 113 231 25 624 27 131 24 756 28 929 28 000 28 003 26 353 30 875Ships 9 675 9 929 1 375 1 616 2 404 4 280 1 904 2 962 3 200 1 863Petroleum activities, various goods 922 650 669 191 31 31 69 58 321 202Othergoods 128528 143424 29748 30 961 32 150 35 669 38 119 33 837 34 731 36737

Services 87 635 86191 21 296 20 794 22 000 23 545 20 578 21 448 23 311 20 854Gross receipts, shipping 44 517 45 204 10 709 11 185 11 525 11 098 11 416 11 461 11 177 11 150Petroleum activities, various services. . . . 637 576 159 159 159 160 144 144 144 144Oil drilling etc 1 802 1 405 569 369 449 415 408 329 376 292Pipeline transport 2133 2 245 534 534 534 531 561 561 561 562Travel 15 741 14 974 3 134 3 820 4 772 4 015 2 918 3 820 5 474 2 762Transport and communication 7 208 7 714 1 238 1 386 1 240 3 344 1 764 1 897 1 966 2 087Financial and business services 10 833 10 590 2 996 2 601 2 402 2 834 2 523 2 472 2 784 2 811Other services 4 764 3 483 1 957 740 919 1 148 844 764 829 1 046

Imports, total 279180 297 653 65 923 67 035 69 032 77190 71 725 73 410 74 362 78156Goods 197 685 216 907 48 118 48 386 48159 53 022 53 382 53 262 51 941 58 322

Ships 7 992 6 317 3191 2 405 1 078 1 318 2188 1 425 761 1 943Petroleum activities, various goods f . . . . 4 486 6 596 1 163 1 116 1 056 1 151 1 609 1 608 1 639 1 740Othergoods 185 207 203 994 43 764 44 865 46 025 50 553 49 585 50 229 49 541 54 639

Services 81 495 80 746 17 805 18 649 20 873 24 168 18 343 20 148 22 421 19 834Operating costs shipping, excl. bunkers . . 18 027 18 901 4 308 4 661 4 542 4 516 4 843 4 706 4 686 4 666Petroleum activities, various services. . . . 6503 3 963 1 620 1 620 1 622 1 641 726 1 124 1 286 827Operating costs oil drilling, excl. bunkers.. 891 643 55 100 57 679 91 156 245 151Travel 26 206 26 923 4 610 5 680 7 749 8 167 4 845 6 460 9 009 6 609Transport and communication 3 846 3 437 742 825 977 1302 813 955 921 748Financial and business services 15 737 15 123 4 407 3 702 3 805 3 823 4 104 3 817 3 394 3 808Other services 10 285 11 756 2 063 2 061 2 121 4 040 2 921 2 930 2 880 3 025

Balance of goods and services1 54 020 55 772 12 789 13 658 12 309 15 264 16 945 12 898 13 554 12 375Balance of goods 47 880 50 327 9 298 11 513 11 182 15 887 14 710 11 598 12 664 11 355Balance of services 6140 5 445 3 491 2145 1 127 -623 2 235 1 300 890 1 020

Income and current transfers etc.

From abroad 33 271 36 850 9 936 7 858 7 414 8 063 9 325 8 801 9 291 9 433Compensation of employees 1 200 1 200 300 300 300 300 300 300 300 300Interest 19 231 21 860 6134 4 417 4 079 4 601 5 710 5 062 5 294 5 794Dividends etc 683 1 700 116 257 147 163 231 695 459 315Reinvested earnings 3 037 4 003 752 750 750 785 999 999 999 1 006Current transfers 9120 8 087 2 634 2 134 2 138 2 214 2 085 1 745 2 239 2 018

Toabroad 60918 61 770 16347 16651 12061 15859 16604 17416 11 941 15809Compensation of employees 3 315 3 201 666 666 666 1 317 816 795 796 794Interest 24 488 24 285 6 966 6 124 4 815 6 583 6 435 6 652 4 730 6 468Dividends etc 7 697 8 045 2 411 3 944 409 933 3 050 3 935 447 613Reinvested earnings 4 073 5101 1 020 1 017 1 019 1 017 1275 1 275 1 275 1 276Current transfers from general government . 7 387 7 932 1632 1575 1800 2 380 1476 1575 1410 3 471Other current transfers 13 958 13 206 3 652 3 325 3 352 3 629 3 552 3 184 3 283 3 187

Balance of income and current transfers1. . «27 647 -24 920 -6 411 -8 793 -4 647 -7 796 -7 279 -8 615 -2 650 -6 376Comp. of employees and inv. income, net . . -15 422 -11 869 -3 761 -6 027 -1 633 -4 001 -4 336 -5 601 -196 -1 736Currenttransfers.net -12 225 -13 051 -2 650 -2 766 -3 014 -3 795 -2 943 -3 014 -2 454 -4 640

Current account balance1 26 373 30 852 6 378 4 865 7 662 7 468 9 666 4 283 10 904 5 999

Capitaltransferstoabroad.net 1 102 1 067 255 271 271 305 65 66 60 876

Net lending 25 271 29 785 6 123 4 594 7 391 7 163 9 601 4 217 10 844 5 123

Memo: Net freight income, shipping 19 939 18 595 4 766 4 889 5 348 4 936 4 599 4 841 4 578 4 577

1 Positive figures mean surplus, negative figures mean deficit.

68


Balance of Payments

Financial account. Million kroner

1994 1995 94:1 94:2 94:3 94:4 95:1 95:2 95:3 95:4

Norwegian investment abroad, total . . . . 9 337 39 281 5 844

Direct investment abroad 15 328 18 130 5 519Shares and equity capital 7 284 12 249 3 184Reinvested earnings 3 037 4 003 752Other capital 5 007 1 878 1 583

Portifotio investment abroad -6 873 22 384 1 344Shares and equity capital -1 409 2 343 1 282

Banks 458 261 401Other sectors -1 867 2 082 881

Other securities -5 464 20 041 62Banks -1 251 2 003 -668Other sectors -4 213 18 038 730

Other investment abroad -1 163 -5 679-4 381Trade credits -18 037-10 922-9 309Loans 1 413 5 932 86

Banks -82 3 016 -474Other sectors 1 495 2 916 560

Currency and deposits 5 735 -2 874 4 156Banks 4 355 -5 104 2 975Other sectors 1 380 2 230 1 181

Other assets 9 726 2 185 686

International reserves 2 045 4 446 3 362Drawing rights IMF -267 421 -459Reserve position IMF 314 2 249 109Foreign currency 1 998 1 776 3 712

-107

31131 563750800

-4 620-1 508

--1 508-3 112-2 449-663

2 401-2 912-1 267-1 127-1401 8782 497-6194 702

-1 001343257

-1 601

7 955

815514750-449

-929-246

-30-905917

-1 822

8 251-5 63513791 35920

7 2113 4903 7215 296

-182156-148-190

-4 355

5 8812 023785

3 073

-2 668-1 159

51-1 210-1 509949

-2 458

-7 434-1811 215160

1 055-7 510-4 607-2 903-958

-134-3079677

21392

3 4271751999677

8 030-123-3

-1208 153-33

8 186

-1-2 48719661319647

4 3341 3063 028•3 814

9 936486

13388112

2 016

3 066926999

1 141

8 721666383283

8 055881

7 174

-466-5 0111 1512 246-1 095675

1 938-1 2632 719

-9 305-83422

-8 493

15 885

9 1297 529999601

2 4901 193-76

12691297195

1 102

-1 481-1 445-540

-1 7761 236-4 699-4 620

-795 203

5 747-30414

5 363

-12

2 5082 0431006-541

3 143607-43650

2 536960

1 576

-3 731-1 9793 35512272 128-3 184-3 728544

-1 923

-1 932799475

-3 206

Foreign investment in Norway, total -1975 31377 4 410 -2 871 6 798-10 312 25 042 1369 6 777 -1811

Direct investment in Norway 19 595 15 264 5 606 7 997 6 667 -675 7 525 5 961 65 1713Shares and equity capital 1 032 3 012 1 252 -490 425 -155 712 418 1 842 40Reinvested earnings 4 073 5 101 1 020 1 017 1 019 1 017 1 275 1 275 1 275 1 276Other capital 14 490 7 151 3 334 7 470 5 223 -1 537 5 538 4 268 -3 052 397

Portifolio investments in Norway -3 656 4 022-2 033 128 952 -2 703 -3 451 -1302 6 985 1790Shares and equity capital 4 655 3 983 681 2 276 2 297 -599 -317 1 774 3 778 -1 252

Banks 119 1 243 -283 627 -1 -224 -205 50 135 1 263Othersectors 4536 2740 964 1 649 2298 -375 -112 1 724 3643 -2 515

Other securities -8 311 3 9 - 2 714 -2 148 -1 345 -2 104 -3134 -3 076 3 207 3 042Banks -4 833 -2 672 -1 145 -2 2 1 0 - 2 008 530 -2 093 -551 29 -57Othersectors -3 478 2 711 -1 569 62 663 -2 634 -1 041 -2 525 3178 3 099

Other investment in Norway -17 914 12 091 837-10 996 -821 -6 934 20 968 -3 290 -273 -5 314Trade credits -7 101 -46-4 679 -2 002 -2 014 1 594 324 211 -545 -36Loans -8 858 12 046 -214 -8 754 293 -183 -1 057 7 285 1 353 4 465

The Central Bank 1 311 -2108 267 -2 329 2 387 986 -2 950 760 332 -250Other banks -1 345 -498 217 -529 151 -1 184 504 -581 -173 -248Othersectors -8 824 14 652 -698 -5 896 -2 245 15 1 389 7106 1 194 4 963

Currency and deposits -2 561 2 980 5 953 -300 591 -8 805 23 410 -10 294 -282 -9 854The Central Bank -77 205 -228 -39 32 158 40 93 -89 161Other banks -2 484 2 775 6181 -261 559 -8 963 23 370 -10 387 -193 -10 015

Other liabilities 606 -2 889 -223 60 309 460 -1709 -492 -799 111

Undistributed capital transactions

andstatisticaldiscrepancy.net 13 959 21 881 4 689 1 830 6 234 1 206 13 251 3 570 1 736 3 324

Net lending 25 271 29 785 6 123 4 594 7 391 7 163 9 601 4 217 10 844 5 123

Revaluations.net 8 630 7 966 1 604 4 269 2 550 207 8165 -232 93 -60

Increase in Norway's net assets 33 901 37 751 7 727 8 863 9 941 7 370 17 766 3 985 10 937 5 063

69


Balance of Payments

Financial account. Million kroner

1996 1997 96:1 96:2 96:3 96:4 97:1 97:2 97:3 97:4

Norwegian investment abroad, total . . . . 141115 133 200 39 567 29 760 20 108 51680 64 912 5 219 43 597 19 472

Direct investment abroad 36 788 28 634 4 486 13 216 2 871 16 215 5 888 8 984 8 136 5 626Shares and equity capital 24 329 12 433 2 216 12 397 276 9 440 1 194 4 738 1 662 4 839Reinvested earnings 4 478 2 984 580 1 251 1 342 1305 1 377 454 511 642Other capital 7 981 13 217 1 690 -432 1 253 5 470 3 317 3 792 5 963 145

Portifolio investment abroad 63 598 121470 8 789 2 909 890 51010 14 210 12 173 15 632 79 455Shares and equity capital 7595 20078 1 371 323 3244 2657 2424 -926 3880 14700

Banks -339 -12 -60 -43 91 -327 -42 95 -56 -9Other sectors 7 934 20 090 1 431 366 3153 2 984 2 466 -1 021 3 936 14 709

Other securities 56003 101 392 7418 2 586 -2 354 48353 11 786 13099 11 752 64 755Banks 49 452 81 857 195 1 769 1 696 45 792 3 451 4 660 5 527 68 219Other sectors 6 551 19 535 7 223 8 1 7 - 4 050 2 561 8 335 8 439 6 225 -3 464

Other investment abroad -888 13 977 18 443 -11 260 4 781 -12 852 31 870 -18 305 5 795 -5 383Trade credits -7 675 -4 4 2 0 - 2 419 -4 179 1 841 -2 918 845 -5 298 1 569 -1 536Loans 4 736 11 131 2 663 4 569 -1 361 -1 135 7 422 389 -767 4 087

Banks 8 042 4 614 3 763 3 935 -581 925 6 504 -764 -1 485 359Other sectors -3 306 6 517 -1 100 634 -780 -2 060 918 1 153 718 3 728

Currency and deposits -1498 -3 775 17 318 -13 223 3 807 -9 400 17 656 -12 153 348 -9 626Banks -636 2 311 8 189 -3 631 -726 -4 468 12 795 -7 554 879 -3 809Other sectors -862 -6 086 9 129 -9 592 4 533 -4 932 4 861 -4 599 -531 -5 817

Other assets 3 549 11 041 881 1 573 494 601 5 947 -1 243 4 645 1 692

International reserves 41 617 -30 881 7 849 24 895 11 566 -2 693 12 944 2 367 14 034 -60 226Drawing rights IMF -610 120 -650 -36 -68 144 -118 -99 387 -50Reserve position IMF -202 854 -22 -24 43 -199 -293 -43 788 402Foreign currency 42 429 -31 855 8 521 24 955 11 591 -2 638 13 355 2 509 12 859 -60 578

Foreign investment in Norway, total . . . . 93 288 81 940 31 315 20 914 1 392 39 667 46 323 -3 597 28 897 10 317

Direct investment in Norway 20 618 25 518 5 974 2 082 6 887 5 675 -2 436 2 115 1871 23 968Shares and equity capital 15 849 20 012 4 488 924 9 183 1254 804 -521 122 19 607Reinvested earnings 2 931 3 606 423 -993 689 2 812 340 -932 2 300 1 898Other capital 1 838 1 900 1 063 2 151 -2 985 1 609 -3 580 3 568 -551 2 463

Portifolio investments in Norway 1428 19 240 -942 6 535 -7 897 3 732 10 874 -11227 36 899 -17 306Shares and equity capital -1 439 -8 068 -2 193 4 025 -5 343 2 072 -930 1 153 1 846 -10 137

Banks 1 424 -586 344 222 759 99 -463 -300 -34 211Other sectors -2 863 -7 4 8 2 - 2 537 3 803 -6102 1 973 -467 1 453 1 880 -10 348

Other securities 2867 27308 1 251 2 5 1 0 - 2 5 5 4 1 660 11 804 -12380 35053 -7169Banks 8156 23130 3 620 49 428 4 059 1 951 127 16 269 4 783Other sectors -5 289 4 1 7 8 - 2 369 2 4 6 1 - 2 982 -2 399 9 853 -12 507 18 784 -11 952

Other investment in Norway 71242 37 182 26 283 12 297 2 402 30 260 37 885 5 515 -9 873 3 655Trade credits -252 1 086 1 146 -1 665 98 169 2 884 2 256 371 -4 425Loans 15 905 14 019 4 058 784 3 299 7 764 4 046 2 617 7 873 -517

The Central Bank 9 542 -4 850 2 286 2 053 3 224 1 979 568 -7 5 529 -10 940Other banks -364 1 438 378 145 -1 453 566 3 971 -3146 -746 1 359Other sectors 6 727 17 431 1 394 -1 414 1 528 5 219 -493 5 770 3 090 9 064

Currency and deposits 55 700 22 943 19 421 13 805 247 22 227 28 196 1 833 -18 634 11 548The Central Bank 45 -125 -28 13 59 1 -92 -180 112 35Other banks 55 655 23 068 19 449 13 792 188 22 226 28 288 2 013 -18 746 11 513

Other liabilities -111 -866 1 658 -627 -1 242 100 2 759 -1 191 517 -2 951

Undistributed capital transactions

andstatisticaldiscrepancy.net 19 919 4 237 11 010 8 671 -633 871 2 335 2 240 -638 300

Net lending 67 746 55 497 19 262 17 517 18 083 12 884 20 924 11 056 14 062 9 455

Revaluations.net -5 056-15 080 -48 -848 -751 -3 409 -6 927 -1 533 -5 786 -834

Increase in Norway's net assets 62 690 40 417 19 214 16 669 17 332 9 475 13 997 9 523 8 276 8 621

70


Previously issued on the subject

Official Statistics of Norway Economic SurveyC 83 Nasjonalregnskapsstatistikk 1991 3/95 Revised Norwegian national accounts

National Accounts Statistics 1991 1/97 Revision of the balance of paymentsC 340 Nasjonalregnskapsstatistikk 1988-1993.

Institusjonelt sektorregnskapC 341 National Accounts 1988-1993. Institutional

Sector Accounts Weekly Bulletin of StatisticsC 427 Nasjonalregnskapssstatistikk 1978-1996. 27/95 (Ekstranummer)

Institusjonelt sektorregnskapC 433 National Accounts 1978-1996.

Institutional Sector Accounts

Economic Analyses6/95 Den makroøkonomiske utviklingen 1988-

1994 belyst ved reviderte nasjonalregnskapstall8/96 Omlegging av utenriksregnskapet1/97 Den makroøkonomiske utviklingen etter 1980

belyst med reviderte nasjonal-regnskapstall4/97 Nasjonalregnskapstall for 1978-19963/98 Avkastning på investeringer i utlandet. En

sammenligning mellom Norge og andre land

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Recent publications in the series Reports

97/21 J. Hass: Investeringer, kostnader og gebyrer iden kommunale avløpssektoren. 1996:Resultater fra undersøkelsen i 1996.1997. 50s.115 kr inkl. mva. ISBN 82-537-4453-6

97/22 T. Nygård Evensen og K.Ø. Sørensen: Turismensøkonomiske betydning for Norge: Belyst vednasjonalregnskapets satelittregn-skap forturisme. 1997. 92s. 115 kr inkl. mva. ISBN 82-537.4455.2

97/23 B.K. Wold (ed.): Supply Response in a Gender-Perspective: The Case of Structural Adjustmentin Zambia. 1997. 77s. 115 kr inkl. mva. ISBN82-537-4458-7

97/24 I. Seliussen: Utvalsstandardawik i detalj-omsetningsindeksen. 1997. 30s. 100 kr inkl.mva. ISBN 82-537-4463-3

97/25 J.L. Hass: Household recycling rates and solidwaste collection fees. 1997. 32s. 100 kr inkl.mva. ISBN 82-537-4470-6

98/1 P.Ø. Kolbjørnsen: Statistikk om informasjons-teknologi: Status, behov og utviklingsmulig-heter. 1998. 43s. 100 kr inkl. mva. ISBN 82-537-4472-2

98/2 A. Bruvoll: The Costs of Alternative Policies forPaper and Plastic Waste. 1998. 30s. 100 kr inkl.mva. ISBN 82-537-4478-1

98/3 0. Skullerud: Avfallsregnskap for Norge:Metoder og resultater for våtorganisk avfall.1998. 32s. 100 kr inkl. mva. ISBN 82-537-4524-9

98/4 S. Mjelve: Økonomisk vekst og fordeling avinntekt i byene i Vest-Agder og Østfold, 1840-1990.1998. 37s. 100 kr inkl. mva. ISBN 82-537-4526-5

98/5 A.S. Bye og K. Mork: Resultatkontroll jordbruk1998: Gjennomføring av tiltak motforurensninger. 1998. 89s. 95 kr inkl. mva. ISBN82-537-4397-1

98/6 K.R. Gerdrup: Skattesystem og skattestatistikk iet historisk perspektiv. 1998. 59s. 115 kr inkl.mva. ISBN 82-537-4531-1

98/7 E. Lofthus og Å. Osmunddalen: Innvandrere ogsosialhjelp: Får mer fordi de trenger mer?.1998. 32s. 100 kr inkl. mva. ISBN 82-537-4533-8

98/8 A. Langørgen og R. Aaberge: Gruppering avkommuner etter folkemengde og økonomiskerammebetingelser. 1998. 60s. 115 kr inkl. mva.ISBN 82-537-4535-4

98/9 A. Thomassen og R. Jensen: Kvadratmeter-priser for skolebygg. 1998. 24s. 100 kr inkl.mva. ISBN 82-537-4539-7

98/10 K. Ibenholt og H. Wiig: Massebalanse i denmakroøkonomiske modellen MSG-EE. 1998.49s. 110 kr inkl. mva. ISBN 82-537-4541-9

98/11 H. Bild, J.E. Finnvold, K.K. Lie, R. Nordhagen ogA. Schjalm: Hvordan møter småbarnsfami-lienehelsetjenesten? 1998. 99s. 115 kr inkl. mva.ISBN 82-537-4550-8

98/12 D. Roll-Hansen: Informasjonsteknologi ilærerutdanninga. 1998. 56s. 115 kr inkl. mva.ISBN 82-537-4554-0

98/13 A. Langørgen: Virkninger av lokalt bosettings-mønster på kostnader i kommunal tjeneste-yting. 1998. 32s. 100 kr inkl. mva. ISBN 82-537-4555-9

98/14 0. Landfald og M. Bråthen: Evaluering avordinære arbeidsmarkedstiltak: Dokumenta-sjonog analyse. 1998. 53s. 115 kr inkl. mva. ISBN82-537-4561-3

98/15 T.I. Tysse og N. Keilman: Utvandring blantinnvandrere 1975-1995. 1998. 160s. 155 krinkl. mva. ISBN 82-537-4581-8

98/16 S. Blom: Levekår blant ikke-vestlige innvand-rere i Norge. 1998. 81s. 115 kr inkl. mva. ISBN82-537-4582-6

98/18 K. Lund: Inntektsfordelinga i den norskelandbruksbefolkninga og fordelingseffektar avdirekte støtteordningar. 1998. 46s. 100 kr inkl.mva. ISBN 82-537-4585-0

98/19 H.K. Reppen: Bruk av folkebibliotek 1998.1998. 46s. 115 kr inkl. mva. ISBN 82-537-4586-9

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the norwegian balance of payments sources and …reports 98/23 the norwegian balance of payments...

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