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Canada's Performance Report 2005 - Annex 2 - Indicator Methodology

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3. Canada's Place in the World

Merchandise trade

Measure: Canada's merchandise exports and imports by partner country and by commodity as well as price and volume indices on imports and exports.

Note: Merchandise trade is one component of the current account of Canada's balance of payments, which also includes services transactions, investment income, and current transfers. The data are calculated on a Customs basis.

Data limitations: Trade statistics produced by one country will frequently differ from those produced by its trading partners due to the different concepts, methods, classifications, measurements, and compilation procedures used in the collection and production of trade statistics. (Statistics Canada, 2005)

Merchandise trade statistics on a Customs basis cover the physical movement of goods as they cross the border and as they are reflected on Customs documents, while trade statistics on a balance of payments (BoP) basis contain adjustments to the Customs data to ensure consistency with BoP concepts and the national accounts framework and are designed to more fully cover the value of all economic transactions between residents and non-residents involving merchandise trade. Inland freight charges, which by convention are assumed to be paid for by the importing country, are one example of the BoP valuation adjustments made to Customs data.

Customs-based exports statistics may understate or incorrectly portray the destination of exports. Export statistics are understated when the proper documentation is not filed with Customs. Exports may also be incorrectly portrayed when the country of final destination is inaccurately reported on the Customs documentation-this occurs most frequently when goods are routed through an intermediary country before continuing on their final destination. (International Trade Canada, 2005)

Data source: Statistics Canada, 2005

Canada's investment position

Measure: Canadian direct investment abroad and foreign direct investment in Canada

Notes: Both inward and outward direct investment flows are categories in the financial account. Direct investment refers to investment of a resident entity in one country obtaining a lasting interest in an enterprise resident in another country. Lasting interest implies the existence of a long-term relationship between the direct investor and the enterprise and a significant degree of influence by the investor on the management of the enterprise. (Statistics Canada and International Trade Canada, 2005)

In practice, direct investment is deemed to occur when a company owns at least 10 per cent of the voting equity in a foreign enterprise. (Statistics Canada, 2005)

Data limitations: In the Canadian statistics, direct investment is measured as the total value of equity, net long-term claims, and net short-term claims of non-bank enterprises held by the enterprise across the border. Direct investment position series are at book value. In this report, direct investment represents the cumulative year-end positions. (Statistics Canada, 2005)

Data source: Statistics Canada, 2005

Armed conflict

Measure: The number of conflicts in the world and per region.

Note: "Armed conflict is defined as a political conflict in which armed combat involves the armed forces of at least one state (or one or more armed factions seeking to gain control of all or part of the state) and in which at least 1,000 people have been killed by the fighting during the course of the conflict. An armed conflict is added to the annual list of current armed conflicts in the year in which the death toll reaches the threshold of 1,000, but the starting date of the armed conflict is shown as the year in which the first combat deaths included in the count of 1,000 or more occurred.

"An armed conflict is deemed to have ended if there has been a formal ceasefire or peace agreement and, following which, there are no longer combat deaths (or at least fewer than 25 per year) or, in the absence of a formal ceasefire, a conflict is deemed to have ended after two years of dormancy (in which fewer than 25 combat deaths per year have occurred)." (Project Ploughshares, 2004)

Data limitations: See the Project Ploughshares Web site at http://www.ploughshares.ca for survey methodology.

Data source: Project Ploughshares, 2004

Perceptions of security

Measure: Polling data

Data limitations: Data are based on a sample survey and therefore subject to sampling error. See Gallup International's "Voice of the People" Web site at http://www.voice-of-the-people.net for survey methodology.

This is a subjective indicator-In recent years in the U.S., a higher level of perceived insecurity has been associated with a significant decline in crime rates, youth crimes, plane crashes, etc., demonstrating that perception and reality often differ considerably.

Data source: Gallup International, "Voice of the People," 2004

Official Development Assistance as a percentage of gross national income

Measure: The percentage of gross national income (GNI)

Notes: Official Development Assistance (ODA) is defined by the Development Assistance Committee of the OECD as official (government) agency funding transferred "to developing countries and multilateral institutions, which meets the following tests: a) it is administered with the promotion of the economic development and welfare of developing countries as its main objective, and b) it is confessional in character and conveys a grant element of at least 25 per cent." (OECD, 2004)

Official assistance is funding provided to countries that are not eligible to receive ODA (e.g. most of the "countries in transition" of Central and Eastern Europe) but that otherwise meet the tests above. (OECD, 2004)

GNI is a measure of the income to a country from production wherever in the world it occurs. For example, if a Canadian-owned company operating in another country sends some of their incomes (profits) back to Canada this adds to Canada's GNI. Similarly, a Canadian production of a U.S. company sending profit to the U.S. will reduce Canada's GNI.

Data limitations: See the OECD Web site at http://www.oecd.org/home/0,2987,en_2649_201185_1_1_1_1_1,00.html for methodology.

Data source: OECD, 2005

 

 
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