New Statistics at no Costs?
The Case of a Joint Compilation of FDI and FATS Statistics in
Austria
Global Forum on Trade Statistics
René Dell’mour
Geneva, February 3rd 2011
Background (1)
Foreign Direct Investment Statistics FDI – Statistics
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part of balance of payments
describing financial stocks and flows related cross-border strategic
shareholdings in enterprises (inward and outward)
usually compiled by central banks
Foreign Affiliates Statistics FATS - Statistics
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a recently introduced compulsory European statistics
on the Activities of Multinational Enterprises (AMNE-statistics)
with a focus on foreign-controlled resident enterprises (Inward-FATS)
but covering also affiliates abroad controlled by domestic investors
(Outward-FATS)
First reporting year 2007
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Background (2)
Conceptual differences between FDI and FATS
FDI
FATS
Financial variables
Non-financial variables
Concept of Influence (10-% rule)
Concept of control (>50% rule)
Variables weighted by share
„winner takes it all“ (100% -rule)
Focus on direct affiliates
Including affiliates under indirect
control
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Background (3)
Oesterreichische Nationalbank (OeNB)
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Launched its first survey on FDI – stocks as early as 1968
already then included questions on economic activities
thus going beyond pure bop/iip - requirements
IMF- Manual (5th edition paragraph 384)
There are aspects of di, other than those directly related to bop and iip data, that may be of interest
from analytical and policy-making points of view. Among such aspects are those pertaining to the
financial structure and operations of subsidiaries, associates, branches, and direct investors.
Examples are the value of the total assets of enterprises; complete balance sheets and income
statements, the composition of sales and of external financing; employment; industry activity of dienterprises and of direct investors; gross product or value added of subsidiaries in relation to total
GDP of the economies involved; and country of ultimate beneficial owner..
Prior to 2007 OeNB already provided parts of “FATS-Statistics”
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Co-operation NSI and NCB
Legislative body commissioned Statistics Austria with
the compilation of FATS-Statistics
in close co-operation with OeNB
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Existed on an informal basis for many years (BOP-NA)
Formalized in 2002 when “Trade in Services” was handed over to NSI
Quarterly Meetings at the top level
Individual Contracts for specific tasks
statistical law not only allows, but requires use of existing statistical or
administrative data
exchange of micro-data between both institutions permitted
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Clear focus of expertise
NSI – General economic statistics
NCB – Financial issues, Financial sector
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Non-profit
Insitutions
Households
General
Governement
Financial
corporations
Cooperation of
Statistics Austria
and OeNB
Non financial
corporations
Matrix of co-operation
Current account
Goods - FTS
Services
Income
Compensation of employees
Investment income
Current transfers
Capital account
Financial account
Direct Investment
Portfolio Investment
Financial Derivatives
Other Investment
Official Reserve Assets
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(Selected) Areas of Co-operation
Balance of Payments
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NSI provides trade in services, current transfers, compensation of employees
(Statistical) Business register
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Regular reconciliation, exchange of identifiers, common identifiers
Identical classifications of activity and sectors of units improve quality of statistics
FISIM and Income
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NCB provides data on financial stocks, income flows and interest rates
NSI calculates FISIM and returns FISIM for BOP -> identical data for SNA
Structural business statistics
.
.
.
.
.
NCB provides non-financial data for banks (employment, investment, etc.)
and FATS
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How Inward FATS-Statistics is Compiled
NCB knows foreign control and UCI from its annual FDI Survey.
Case by case data collection allows identification of control
Finally, an automated analysis of the administrative enterprise
register results in an exhaustive list of resident, foreign
controlled enterprises.
NSI links SBS and NCB list using common identifiers
Identifies “inactive” units
Directly links “big” enterprises with SBS – data base.
(Employment, personnel cost, production, turnover, value added, gross investment, purchase of
goods and services (for resale), R&D variables (biennial)
For SMEs outside the SBS-sample imputation mechanisms are
used to arrive at totals (regression models by activity and size class – employment
and turnover are used as external variables).
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How Outward FATS-Statistics is compiled
NCB acts on behalf of the NSI
Annual FDI-Survey addressed to all resident investors has been
extended to cover all indirectly controlled affiliates abroad;
(Synergy with the „Direct influence – indirect control“ concept of FDIR)
Resident Direct Investors report on ALL foreign subsidiaries
above threshold (Name, address, employment, turnover) under control of the
reporter.
This dataset is transferred to NSI
Subsidiaries of resident investors under foreign control
(regional headquarters of foreign MNEs) are excluded in order
to avoid double counting (“Nationality” of the MNE).
Subsidiaries within EU-27 are reported to EUROSTAT on a
voluntary basis.
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Selected Results (Inward)
A small number of Foreign Controlled enterprises (3%)
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which are generally bigger than average ( 19 % of employment)
tend to pay better ( 26 % of personnel costs)
are more productive than the average (32 % of turnover)
and very innovative (53% of business R&D expenditure)
Foreign control varies between activities
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E.g. 5% of employment in construction, but 28% in manufacturing)
Foreign control is highly concentrated
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German MNEs (49 % of employment)
Swiss MNEs ( 10 % of employment)
US MNEs ( 10 % of employment)
Dutch MNEs (5% of employment
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Selected Results (Outward)
Affiliates abroad controlled by resident investors
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employ 760.000 people, which is more than inward FATS (500.000)
but their sales (turnover) amount to 178 bn EUR only, which is less than the
comparable figure for inward FATS (197 bn EUR)
One third of affiliates abroad are part of foreign Multinationals
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Therefore only 480.000 employees abroad are “Austrian” according to FATS
This fact underlines the role of regional headquarters in Austria
Affiliates abroad are much more dispersed
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The biggest host country (Romania) accounts for slightly more than 10%
with Hungary, the Czech republic and Germany being only slightly less
important
Followed by almost 80 countries more
Source: FATS 2007
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Conclusion
The new FATS-Statistics could be compiled
without setting up a new survey
without increasing the respondents’ burden
at reasonable cost for the statistical agencies
Thanks to
Compatible definitions
Overcoming the confidentiality barrier
Increased use of existing data
Harmonization of registers
Granular data-collection
Close co-operation of institutions involved
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Thank you!
René Dell'mour
Senior Expert
External Statistics and Financial Accounts
Oesterreichische Nationalbank
Otto Wagner-Platz 3
1090 Vienna/Austria
Tel: +431 40420/5415
rene.dellmour@oenb.at
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