STD/PASS/TAGS
STD/SES/TAGS – –Trade
Tradeand
andGlobalisation
GlobalisationStatistics
Statistics
Analysing the Trade
in Services Data
Draft analytical (annex 7)
OECD Statistics Directorate
STD/PASS/TAGS
STD/SES/TAGS – –Trade
Tradeand
andGlobalisation
GlobalisationStatistics
Statistics
Introduction
1. In September 2007 at the TFSITS meeting in Paris
OECD presented paper setting out draft proposals for
an analytical annex.
2. It addressed six themes highlighted by the responses to
the world wide consultation and slightly amended at the
Madrid (January) 2007 and Vienna (March) 2008
meetings.
3. Purpose of the annex: to provide a toolbox to make
better use of trade in services data, which would
ultimately help to improve the data quality.
STD/PASS/TAGS
STD/SES/TAGS – –Trade
Tradeand
andGlobalisation
GlobalisationStatistics
Statistics
Worldwide consultation priority ranking
• 1) Combining balance of payments data, foreign
affiliates trade data, and mode 4 data for
analysis;
• 2) addressing linkages between services trade
and production data;
• 3) how to link trade in services data with merchandise
trade statistics showing overlaps and gaps;
• 4) bilateral asymmetries in trade in services data
applying the data to models of world trade flows;
• 5) analysis on a sectoral basis of trade in
particular services – such as health services;
• 6) identification of services for which a country
has a comparative advantage in trade.
STD/PASS/TAGS
STD/SES/TAGS – –Trade
Tradeand
andGlobalisation
GlobalisationStatistics
Statistics
Theme 1. Combining balance of payments data, foreign
affiliates trade data, and mode 4 data for analysis;
• A text taking a broder view on international delivery of
services (setting BOP,FATS and mode 4 in same
picture) and giving an example on software services was
was provided from the BEA.
•
Diagram illustrating the BEA example on software
services.
STD/PASS/TAGS
STD/SES/TAGS – –Trade
Tradeand
andGlobalisation
GlobalisationStatistics
Statistics
Theme 1. Diagram on modes of supply (software
example)
Country A
Country B
Mode 2: Customer travels to
country B to buy software
development services on his
own account. BOP Travel
item, Tourism statistics
Customer
Mode 3:
end sales
of
software
FATS
sales data
Alpha Software
company affiliate
(Functions:
Marketing, systems
analysts, customer
support)
Mode 1: sending software
solutions to customer
BOP Computer and information
services
Alpha software
company HQ
(Functions:
management,
software
development)
Mode 4: software
professionals (intra
corporate transferees
or CSS) FATS
employment data,
RSIM non-migrants
STD/PASS/TAGS
STD/SES/TAGS – –Trade
Tradeand
andGlobalisation
GlobalisationStatistics
Statistics
Theme 2) addressing linkages between services
trade and production data;
• A list of trade indicators
– Basic
• Export propensity.
• Import penetration
– Broader view of services delivered
• Outward services sales of FA + Services exports (ODS)
• Inward services sales of FA + Services imports. (IDS)
• A table produced by statistics Canada
where trade is broken down by industry.
STD/PASS/TAGS
STD/SES/TAGS – –Trade
Tradeand
andGlobalisation
GlobalisationStatistics
Statistics
Theme 2
Outward Delivery of Services (ODS).
• Where
• ODS= Total exports of services and outward foreign
affiliates sales of services .
• Xs= BoP Total services exports
• SFos= Outward foreign affiliates sales of services
excluding Wholesale, retail trade and repairs (ISIC G)
and construction (ISIC F)
• XFos=FATS outward exports of services to the
country of the parent or to a third country.
STD/PASS/TAGS
STD/SES/TAGS – –Trade
Tradeand
andGlobalisation
GlobalisationStatistics
Statistics
Theme 2
Outward Delivery of Services divided by GDP (ODS’).
If aim of the analysis is to look at the affects of trade on
the home economy (benefits of trade), smaller weight
should be applied on FA sales information compared to
Exports information as in term of primary flows:
•Exports: all gains from exports accrues to home
economy
•Foreign affiliates outward: Only a share of the profit
would accrues to the domestically owned parent
company.
•W=weight (rate of return of outward DI ?) applied on the
value of services local sales of foreign affiliates where
0<w<1.
STD/PASS/TAGS
STD/SES/TAGS – –Trade
Tradeand
andGlobalisation
GlobalisationStatistics
Statistics
Theme 2
Outward delivery of services
All Export money accrues
to home economy
Trade data
Exports of services Xs
Share (w) of profit accrues to home
economy
Affiliates
Local sales
of A
SFOs-XFOs
Production
data
STD/PASS/TAGS
STD/SES/TAGS – –Trade
Tradeand
andGlobalisation
GlobalisationStatistics
Statistics
Theme 2
Inward Delivery of Service indicator (IDS).
• Adds the value of services imports and inward foreign
affiliates local sales of services.
• IDS = total imports of services and inward foreign affiliates
sales of services
• Ms = BoP Total services imports
• SFis = Inward foreign affiliates sales of services excluding
Wholesales, retail sales and repairs (ISIC section G) and
construction (ISIC section F)
• XFis = Exports of services of inward foreign affiliates to the
country of the parent or a third country.
STD/PASS/TAGS
STD/SES/TAGS – –Trade
Tradeand
andGlobalisation
GlobalisationStatistics
Statistics
Theme 2
Inward Delivery of Services divided by Domestic
Demand (IDS’).
• If aim of the analysis is to look at the effects of trade on the
home economy (cost of trade), equal weight should not be
applied on imports and FA sales as in term of primary
flows:
• Imports: all expenses of imports accrue to foreign economies
• Foreign affiliates inward sales: Only a share of profit would accrue
to the foreign owned parent company.
• W=weight (rate of return of inward DI ?) applied on the value of
services local sales of foreign affiliates where 0<w<1.
STD/PASS/TAGS
STD/SES/TAGS – –Trade
Tradeand
andGlobalisation
GlobalisationStatistics
Statistics
Theme 2
Inward delivery of services
All Import money leaves the
home economy.
Imports of services Ms
Affiliates
Trade data
Only a share (w) of profits
leaves the home economy
Exports by FAs XFIs
Production data
STD/PASS/TAGS
STD/SES/TAGS – –Trade
Tradeand
andGlobalisation
GlobalisationStatistics
Statistics
Theme 2
2005
Commercial services by category and by
industry
Based on North American Industrial Classification System
Total,
goods
producin
g
industries
Total,
services
producin
g
industries
Manufactu
ring [3133]
6,158
5,401
757
200
195
57
Other
goods
producing
industries
Profession
al,
scientific &
technical
services
[54]
Managem
ent of
companie
s&
enterprise
s [55]
Other
services
producing
industries
Memoran
dum item:
Informati
on &
communi
cation
technolog
y
Trade and
transportat
ion
Informatio
n, culture
and arts
Finance
and
insurance
[52]
30,7
31
3,800
7,337
6,351
9,991
921
2,330
10,163
5
2,43
0
998
1,278
0
68
30
55
1,519
52
5
165
11
0
0
125
28
1
0
11
11
0
3,87
7
0
0
3,640
1
231
5
0
8
3
5
1,91
4
2
39
1,719
64
12
78
41
168
147
20
4,58
5
313
1,559
174
2,423
36
81
3,811
812
799
13
2,63
5
379
1,285
10
884
36
41
1,685
104
97
7
738
569
14
86
59
6
3
311
15
2
13
305
190
0
0
4
0
111
0
1,110
892
218
4,01
8
385
309
647
1,860
468
350
863
40
40
0
462
53
185
41
168
1
13
34
1,030
1,011
19
1,77
8
539
216
11
978
0
35
1,159
1,265
890
375
3,41
8
160
5
21
3,001
40
192
304
1,078
1,001
78
2,14
4
170
470
1
339
33
1,131
413
260
260
0
2,03
4
32
1,977
0
18
0
6
21
0
0
0
229
0
0
0
0
0
229
0
CREDITS (in millions of C$)
Total, commercial services
Communications services
Construction services
Insurance services
Other financial services
Computer and information services
Royalties and licence fees
Non-financial commissions
Equipment rentals
Management services
Advertising and related services
Research and development
Architectural, engineering, and other
technical services
Miscellaneous services to business
Audio-visual services
Personal, cultural and recreational
services
STD/PASS/TAGS
STD/SES/TAGS – –Trade
Tradeand
andGlobalisation
GlobalisationStatistics
Statistics
Theme 3. Uses of bilateral flow data
including asymmetries
• Mirror data can help in checking whether the flows reported by
each reporting country are reflected by its partner country.
• To check whether the reported flows are the same or
compatible.
• To detect systematic differences in the reporting process.
• To detect differences in definitions from one country to the other.
•
The annex exposes the different uses of bilateral data,
with definitions, examples, asymmetries causes.
• Reference on internet to work done by Eurostat on Asymmetries
in EU Current Account data.
http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-DB-06002/EN/KS-DB-06-002-EN.PDF
STD/PASS/TAGS
STD/SES/TAGS – –Trade
Tradeand
andGlobalisation
GlobalisationStatistics
Statistics
Theme 3. Coverage of reported exports in partner
country data and estimates based on mirror
statistics
Exporting Region
Total exports
(billion USD)
2004
Total available exports data
by partner country - % of
total exports
Reported data
supplemented
Reported
by mirror data
data
World
2,234.8
76.0
88.1
OECD
NAFTA
OECD Asia and Oceania
OECD EU 19
OECD Europe Other
Africa
America
Asia and Oceania
Europe
International Organisations
1,709.6
397.0
173.7
1,045.9
93.0
52.9
452.4
531.4
1,206.2
1.9
94.3
98.0
93.1
98.1
37.9
0.0
86.0
40.7
90.6
0.0
97.8
99.0
97.3
98.1
90.0
72.0
100.0*
70.3
91.5
100.0
* Reported imports from non-OECD America exceed reported exports of the region
STD/PASS/TAGS
STD/SES/TAGS – –Trade
Tradeand
andGlobalisation
GlobalisationStatistics
Statistics
Theme 4. Identification of services for which a
country has a comparative advantage in trade.
• Export Dynamics
Compare average growth for specific services among
countries (explanation Formula) source ECB.
• Balassa index of Revealed Comparative Advantage
(RCA) measures the intensity of trade specialization of a
country within a region or the world. [Explanation ,
definition, formula, example of the calculation of the
Balassa index for i) developed country ii) developing
country]
STD/PASS/TAGS
STD/SES/TAGS – –Trade
Tradeand
andGlobalisation
GlobalisationStatistics
Statistics
Theme 5. Market access
• Why is it of interest
• There is a growing interest in identifying Barriers to
service trade and to find out what gains could be
achieved by removing those barriers.
• What does the annex say
Work is being undertaken to set up services restrictiveness
indexes in major organisations (OECD).
The Productivity Commission and the Australian National
University have been measuring restrictions on trade in
services for a number of economies in Europe, Asia, and
North and South America.
STD/PASS/TAGS
STD/SES/TAGS – –Trade
Tradeand
andGlobalisation
GlobalisationStatistics
Statistics
Theme 6. Example on global outsourcing
• Herfindahl index of geographical
concentration (shows geographical
diversification of export)
(Formula, explanations, calculations)
STD/PASS/TAGS
STD/SES/TAGS – –Trade
Tradeand
andGlobalisation
GlobalisationStatistics
Statistics
Suggestions ?
• Do you find analytical themes proposed in the annex
useful?
• Do you have any other comments or suggestions
regarding the content of the proposed analytical annex?
• Do you agree that a new analytical annex along the lines
of the draft provided should be included in MSITS to
assist users in adding value to the basic statistics?