A general look on the nonobserved economy in Iran

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A general look on the non-observed economy in Iran
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• The statistical centre of Iran (SCI) has been
  trying hard to have a complete coverage of
  economic production.
• The exhaustiveness of production accounts is a
  goal for this centre, but there has been
  difficulties in accounting for some types of
  non-observed activities.
• However, there are some works done in pursuit of
  decreasing the missing data. Here is brief
  description of the most important works which
  have been done in this respect.

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• One approach of categorizing the activities in
  non-observed economy of Iran, can be the
  following
• A- Productive activities performed in
  households.
• B- Productive activities without a
  determined location and those which are
  itinerant.

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• Gathering information from non-observed economy
  of Iran from households is easier, so most of the
  information in this area are gathered from
  different household surveys.

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• Most of the non-observed activities which are
  itinerant or without a location, are service
  producers. The value estimation for many of them
  is difficult and complicated.
• The main problem is that the statistical
  population for each activity of this category is
  unknown. The variety of activities is much more
  in this category, besides the problem of
  determining the border line between legal and
  illegal activities.

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• The situation of economic activities in respect
  of non-observed economy in Iran.
• 1- Agriculture
• There is no considerable problem of non-observed
  agricultural activities. Statistical population
  of agricultural holdings is known, and the
  necessary information are gathered from relevant
  surveys. Agricultural production of households
  for own final use are compiled from the results
  of the household budget surveys.

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• 2- Mining and quarrying
• The unlawful extraction of sand is probable in
  the rural areas of Iran. Government is trying to
  have more control on this activity like other
  mining activities. So the importance of this kind
  of non-observed activity is getting less.

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• 3- Manufacturing
• Considerable manufacturing activities are done
  in the non-observed economy of Iran. SCI has
  tried to get the information of these activities
  by different household surveys, general census of
  manufacturing, cooperation with the handicraft
  organization of Iran, and some other
  manufacturing surveys.
• Most of the non-observed manufacturing
  activities of Iran are performed in the
  households. These activities are mostly weaving
  textiles, weaving rugs and different kinds of
  carpets, weaving baskets and mats, making apparel
  and foodstuff, etc. Household budget surveys
  have the highest importance in providing the
  information.

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• 4- Construction
• Construction activities in non-observed economy
  of Iran is also considerable. Since the
  information is gathered from different
  institutional sectors by expenditure approach,
  the hope exists that there is no missing
  information about production. Problem exists in
  respect of the number of people engaged in
  construction works, because the non-observed
  labor force do not have a definite location.
  General idea of expert group in Iran is that
  almost 50 percent of the labor force engaged in
  construction works in this country is
  non-observed.

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• 5- Restaurants, Hotels, and trade activities
• Activities similar to restaurants and hotels,
  and also trade activities exist in the informal
  sector of national economy of Iran.
• Restaurant and hotel and part of the trade
  activities of informal sector are performed in
  households. There is no important difficulty in
  getting the information of these activities from
  household budget surveys, but the other part of
  the trade activities which dont have a definite
  location is not easy to be investigated. The
  statistical population of this part is unknown.

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• 6- Transportation
• Among the transportation activities, transport
  of passengers via road has considerable
  importance in the informal sector of the economy
  of Iran.
• The purchasers of informal transport services
  are mainly households. The use of other
  institutional sectors from these services is
  negligible. Production value of this part of
  transport production is indirectly measured by
  special questions which were put in the current
  income and expenditure survey of households.

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• 7- Financial affairs
• Problem exists for the estimation of services
  rendered by itinerant money changers.
• These money changers do not have a definite
  location, and their statistical population is
  unknown.

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• 8- Education
• The importance of education provided by private
  teachers is becoming more in Iran. The estimation
  work for the private teachers who teach in their
  own house is not difficult, because the
  population of unincorporated enterprises of this
  kind is known.
• The population of private teachers who teach in
  places other than their own house is not known.
  However the questions relevant to the
  expenditures for private teaching are asked in
  the household budget surveys.

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• 9- Business and other services
• The non-observed economy with respect to
  business and other services contains a very
  extensive spectrum in Iran. Because of the
  diversity of activities and other difficulties,
  they are not covered in the national accounts.
  The appropriate recommendations are required in
  the national accounts.

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