Guidance on Measuring
Global Production
• Prepared by Eurostat, OECD and UNECE
10th AEG meeting
13-15 April, Paris
.
Guide to Measuring Global Production
• The Guide
–Published in January 2016
–Practical guidance: processing, merchanting, multiterritory
enterprises, quasi transit trade, large cases units
–Conceptual guidance: typology (FGP, merchanting of
services), ownership, treatment of ownership of IPP
• Consultations
–AEG: 2013 (Industrial classification of FGPs)
2014 (treatment of FGP transactions, ownership
over IPPs)
- 2 global consultations, BOPCOM, Classifications EG, etc.
• Research agenda
Guide to Measuring Global Production
• This paper
–Summarizes the main recommendations of the Guide
and the proposed further work
–Presents the follow up activities of Eurostat, OECD
and UNECE in the identified areas
Implementation of the Guide
• Main priority of countries is implementation of the
recommendations of the Guide/2008 SNA with respect
to global production:
– Increased
data requirements
– Review of data sources; development (or revision) of
questionnaires
– Increased response burden
– New methods for compiling and integration of data
• Information exchange platform
– For
stocktaking of complex cases, testing the typology
– For exchange of experience
– In the form of face-to-face meetings and/or website
Implementation of the Guide
• Several meetings provided forum to discuss research issues
and share experience
–
UNECE/Eurostat/OECD meeting on Measuring Global Production
– OECD Working Party on Trade in Goods and Services
– OECD Working Party on National Accounts
– OECD Expert Group on Extended SUT
• EU countries - Eurostat Project on Global Production and
Integrated Global Accounts (Sept 2016- Dec 2018) to ensure
–
Consistent implementation of the Guide across NA and BoP
– EU input to the research agenda
• SEE and EECCA countries
–
Workshop(s) by Eurostat, UNECE, other partners
– Russian version of the Guide by CIS-Stat and UNECE
Main recommendations and future work
• Typology of global production arrangements
– Testing and updating the typology based on real examples (e.g.
merchanting of services)
– Factoryless goods producers: start by developing rules for
identification, test the alternative classification and treatment
proposed in the Guide
– Goods services split
• Follow up
– EU Task Force on FGPs: to develop rules for detection and
flagging based on ESS sources
– Joint meeting between the UNECE/Eurostat/OECD Expert Group
on NA and TSG on ISIC (19 May 2016)
– ISWGNA Task Force on Statistical Units (chaired by OECD)
Main recommendations and future work
• Economic Ownership – theory and practice
–Legal versus economic ownership within MNE groups
(SPEs holding IPPs), prorating of transactions and
assets ownership of multiterritory enterprises and
construction projects
 Regular dialogue with IASB, following emerging
arrangements or changes in accounting practices
 Prorating of transactions and assets ownership in
coordination with all NSIs involved
 Continue the exchange of country experiences in
recording the activities of multiterritory enterprises
Main recommendations and future work
• Economic Ownership – theory and practice
–Stay close to statistical reporting (rerouting not
recommended) but explicitly identify artificial IPP
services, e.g. in supplementary tables
 Develop the design of supplementary tables to inform
users the significance of these flows
–Decision tree for determining economic ownership of
IPPs in MNE Group
 Testing the applicability based on different data
availability
Main recommendations and future work
• New Data Sources and Methods
– Additional data needs to provide measures of items
incompletely (or not) covered in existing source statistics
– Serious resource constraints, NSIs should consider ways of
making optimal use and combining data from different
sources including tax and customs data
– Integrated business register that allows bridging the statistical
business register and the customs register
– Large and complex enterprises units dealing with integrated
data collection, compilation and consistency analysis
– Need of international cooperation and data exchange
between NSIs
 Common international business register
Main recommendations and future work
• New Data Sources and Methods
– International cooperation and data exchange (cont.)
 Recording of intra-company services flows; confidentiality issues
 Data comparison programmes for bilateral asymmetries
• Follow up
– Eurostat-OECD compilation guide on measuring inventories –
section on global production (and inventories held abroad)
– In-depth review of exchange and sharing of economic data –
the CES Bureau will discuss future work in October 2016
– EuroGroups Register – the new release in 2016 will cover nearly
60000 multinational enterprise groups
Main recommendations and future work
• Price and volume measurement
– Developing of price and volume measures for
• Industrial processing
• Output of FGP principal and contract producer
• Trade services in connection to merchanting
• Services of head offices
• IPP related services
• Inventories abroad, etc.
• Follow up
• Update of the Eurostat Handbook on Price and Volume
Measures - recommendations on price and volume
measures for merchanting and processing abroad
Main recommendations and future work
• Trade in Value Added
– Improving the quality of statistics on global production
• Enhancing a global accounting framework
• Eliminating asymmetries in trade statistics
• Developing aggregations grouping together firms with similar
roles in global value chains (e.g. processors, FGPs, etc.)
• Follow up
– FIGARO project
• Annual production of EU inter-country IOT and 5-year production
of EU inter-country SUIOT
• First results in 2017
Main recommendations and future work
• Trade in Value added – follow up
– TiVA
• Consolidate and enhanced TiVA database, extensions
linking trade and investment, SMEs
• Work to reduce asymmetries and improve coverage of trade
statistics
• International coordination (FIGARO, APEC-TiVA)
– OECD Expert Group on Extended SUT
• Integrated economic accounting framework linking TEC
data, FATs, FDI flows, SBS, trade, employment and SUT to
provide a coherent tool for the analysis of globalisation
• Input to UN ITEGS Expert Group
– Development of Investment Matrices by Industry and Asset
Guidance to Measuring Global Production
AEG is asked to:
• Provide comments on the planned activities
• Express views on the priorities of work