Income and Expenditure Accounts Technical Series
Provincial and Territorial Culture Satellite Account, 2010
Background and scope
Statistics Canada has been using satellite accounts as a means to focus on various areas of interest in the CSNA. A satellite account is an extension of the core SNA, hence the term “satellite”. The account separates out the relevant components of the SNA; in this case, culture and sport-related economic activity. It follows the main principles, classifications and definitions of the SNA and therefore estimates in the satellite account are directly comparable and consistent with the rest of the SNA. Tourism, pensions and the not for profit sectors have all been measured with the satellite account framework.
The measurement of the economic importance of culture and sport has attracted increasing world-wide interest in recent years, prompting the official release of the CSA in the fall of 2014. Statistics Canada has now expanded the measurement and analysis of culture and sport with the development of the PTCSA.
The PTCSA is based on a number of feasibility studies undertaken by Statistics Canada for the Department of Canadian Heritage and its partners. The goal of the feasibility studies was to develop a sound methodology using recognized international accounting standards. The result of these studies was the National CSA and now the PTCSA.
The objective of developing the PTCSA was to measure the importance of culture and sport in each of the provinces and territories. To do so, the production of culture and sport goods and services and their contribution to output, GDP and jobs in each provincial and territorial economy are estimated. Culture output is the value of culture goods and services produced in the economy by establishments in culture and non-culture industries. Culture GDP is the value added related to the production of culture goods and services in the economy produced by culture and non-culture industries. Culture jobs are the number of jobs in the culture and non-culture industries related to the production of culture goods and services. Equivalent definitions and measures apply for sport GDP, sport output and sport jobs. Detailed concepts and definitions are available in appendix B.
The GDP, output and jobs are measured from two perspectives, the industry and product perspective.
- The product perspective, which measures output, GDP, and jobs resulting from the production of culture or sports products regardless of whether they were made by establishments in culture or non-culture industries.
- The industry perspective, which measures output, GDP, and jobs resulting from establishments classified as belonging to the culture or the sport industries. These estimates include the production of both culture and sport and non-culture and non-sport products.
Information and analysis for culture and sport are presented separately and estimates are mutually exclusive. Estimates are based on 2010 Provincial and Territorial Input-Output tables, Statistics Canada culture surveys (see Appendix K) as well as administrative data.
The 2010 Provincial and Territorial Input-Output tables detail the production, use and consumption of all goods and services in the provincial and territorial economies. They measure economic activity by industry and by product and are the primary building block of the PTCSA.
The PTCSA follows the Canadian System of National AccountsNote 1 and the 2011 Canadian Framework for Culture Statistics frameworkNote 2 in defining culture and sport. PTCSA uses the Input-Output Industry Classification (IOIC) for industries and the Input–Output Commodity Classification (IOCC) for goods and services. The IOIC is based on the North American Industry Classification System (NAICS) 2007. The IOCC is based on the North American Products Classification System (NAPCS) 2007.
Although the PTCSA follows the CFCS, the Mediating Products and the Physical Infrastructure domains have been excluded as they are not directly related in the creation of culture products but support the production and consumption of culture output.
The PTCSA measures market and non-market output. Market output consists of goods and services sold at a price where producers are willing to supply the amounts that purchasers wish to buy. Non-market output comprises goods and services that are not sold on the market and are generally valued at cost. Non-market output can only be supplied by government and non-profit institutions serving households. The PTCSA does not include volunteering activities.
The culture and sport estimates are limited by how the various economic transactions are articulated within the CSNA and CFCS. A culture industry, although defined in the same manner across the country, may operate differently from one province to the next. For example, in Ontario, an establishment in culture industry X uses 100 culture jobs to produce culture goods. In British Columbia, an establishment in culture industry X also uses 100 jobs with 50 of these jobs in the establishment and 50 outsourced to a temporary manpower agency (a non-culture industry). In the PTCSA, Ontario would record 100 culture jobs while British Columbia would record 50 culture jobs. The remaining 50 jobs would be allocated to Temporary Help services, a non-culture industry.
Areas for further development
Compiling the provincial and territorial dimension of the CSA has highlighted some areas of further development such as the Craft, Library, Archive and Film and Video sub-domains.
The GDP, output and jobs of the Library and the Archives sub-domains may be underestimated as some of the activity is potentially classified under the government sector. At this time, with the available information, it was not possible to reliably identify the relevant portion that may need to be reallocated to the Libraries and Archives sub-domains. Recently released government financial statistics data will be reviewed for possible use in the future.
The Crafts domain is an area of weakness, due to the difficulty in identifying crafts products and industries within the current product classification systems used in Canada. The CFCS identified a Crafts sub-domain with corresponding Crafts industries. These industries are the manufacturing and the distribution (wholesale and retail) industries. Crafts and industrial production are aggregated together in manufacturing industries. The CFCS did not identify crafts goods since they were not included in the provisional NAPCS—the classification used when the CFCS was developed. As such, the PTCSA methodology uses secondary information to isolate the culture content of craft products from that of manufacturing industries.
In the PTCSA, the following products are used as representative of craft goods: MPG332A09 (fabricated metal products), MPG339901 (jewelry and silverware), MPG339909 (other miscellaneous goods) and MPG323001 (printed products). The value of craft is concentrated in the MPG33990 (jewelry and silverware) and in MPG339909 (other miscellaneous goods).
The implication of this methodology is that the GDP, output and jobs of the Crafts sub-domain may be understated because the existing classification systems and data sources do not permit an analysis at the detail required.
The latest version of the industry classification, NAICS 2012, includes Crafts output under the industry “Independent visual artists and artisans”. This may provide detailed information on artisans producing artistic and cultural objects in small quantities. A future PTCSA which would incorporate NAICS 2012 should provide a more precise estimate of the Crafts domain.
The methodology and data sources of the PTCSA are those of the Canadian CSA 2010. They are explained in Appendix F.
As better classifications and data sources become available they will be integrated in future versions of the PTCSA.
Comparison with other studies
Care must be taken when comparing the PTCSA with other studies of the culture or sport sectors. Many studies of culture include Information and Cultural industries (NAICS 51) and Arts, Entertainment and Recreation (NAICS 71) in their scope for measuring culture. In compiling the PTCSA, very detailed information at the six-digit NAICS is used to exclude non-culture industries such as Data Processing, Hosting, and Related Services, or Gambling. This means that the estimates for output, GDP and jobs in the PTCSA will be lower.