Group of Experts on the Impact of
Globalization on National Accounts
Art Ridgeway, Statistics Canada
Tihomira Dimova, UNECE
3 February 2011
14 March 2016
Slide 1
Group of Experts on the Impact of
Globalization on NA



Established in April 2007, following a decision of the
Conference of European Statisticians (CES)
Objective: review the main distortions in the compilation of
NA and related source statistics, caused by globalisation and
put forward proposals on how to deal with these distortions
Membership:
•
•
•
•
All member states of UNECE, OECD and Eurostat
Leadership group: Canada, Czech Republic, Finland, the
Netherlands, UK, USA, Eurostat, IMF, OECD and UNECE
Chair: Peter van de Ven, Statistics Netherlands
Vice-Chair: Art Ridgeway, Statistics Canada
Editor: Peter Bull, UK
14March
March2016
2016
14
Slide 2
Group of Experts on the Impact of
Globalization on NA

Outcome: Practical Guide with recommendations and
best practices in relation to the main globalization
factors that affect NA

Timetable:
•
January 2011: the draft Guide was submitted for comments to
the CES Bureau
•
March/April 2011: Electronic consultation with all CES
member countries and organizations
•
June 2011: Presentation of the Guide to the CES plenary
session for endorsement.
14March
March2016
2016
14
Slide 3
Globalization factors and NA measures
Global phenomenon
National accounts items most affected
Arrangements within
MNEs, including transfer
pricing
Allocation of GVA/GDP across countries;
international trade in goods and services;
investment income and financial flows
FDI relationships
Investment income and financial flows; i.i.p.
Special purpose entities
(SPEs)
International trade in services; investment
income and financial flows; i.i.p.
Goods sent abroad for
processing
GVA/GDP; international trade in goods and
services
Merchanting
International trade in goods (and possibly
services)
14March
March2016
2016
14
Slide 4
Globalization factors and NA measures (cont.)
Global phenomenon
National accounts items most affected
International trade in
intellectual property assets
GVA/GDP; capital formation; international
trade in assets and related services
Quasi-transit trade
GVA/GDP; international trade in goods
International labour
GNI, gross national disposable income,
movement and remittances international transfers
Ownership of property
abroad
International trade in services; investment
income and financial flows; i.i.p.
Internet trading
International trade in goods and services;
household consumption
14March
March2016
2016
14
Slide 5
Content of the Globalization Guide

12 core chapters split into three main groups:
•
Multinational enterprises
•
Trade in goods and services, and global manufacturing
•
Household-related issues

Specific country experiences are presented as annexes to
the chapters

Addendum on the impact of the financial crisis

The way ahead: research agenda and international fora
that can advance the work
14March
March2016
2016
14
Slide 6
Main conclusions and suggestions for
future work – Global manufacturing
Conceptual and measurements issues

•
Criteria to apply the “merchanting” or “goods for
processing” treatment
•
Valuation of the good or the service - arms length
vs. within MNEs
•
Inventories held abroad
14March
March2016
2016
14
Slide 7
Main conclusions and suggestions for
future work – Goods for processing


Conceptual and classification issues to clarify

double counting as goods and services?

coding to allow recording on ownership basis
Analytical aspects
14March
March2016
2016
14
Slide 8
Main conclusions and suggestions for
future work – Merchanting

Merchanting of goods
•

Linking in with other measures of trade
and production
Merchanting of services in an internet world
•
Not covered in international manuals
14March
March2016
2016
14
Slide 9
Main conclusions and suggestions for
future work – Intellectual Property


Major challenge for trade measurement
•
Services associated with intellectual property
•
Ownership changes for existing intellectual
property
•
Income flows associated with rights to use
Particularly challenging within MNEs
14March
March2016
2016
14
Slide 10
Main conclusions and suggestions for
future work – Administrative data
 Administrative data as second best

•
Assumptions needed to fill in the gaps
•
Evolution of global production challenges
assumptions
Budget realities
•
Constrained resources for statistics
•
Pressure to limiting response burden
•
Costly to adjust administrative systems
14March
March2016
2016
14
Slide 11
Final thoughts

Requirement to use data from multiple
sources to address many issues

How to facilitate integration of
administrative data sources like merchandise
trade with other administrative sources and
surveys

No country or institution will do it alone
14March
March2016
2016
14
Slide 12