AUSTRALIAN SERVICES IN THE GLOBAL ECONOMY
- FINAL REPORT -
PREPARED BY OECD – DSTI FOR
THE AUSTRALIAN GOVERNMENT, DEPARTMENT OF INDUSTRY
JUNE 2014
TABLE OF CONTENTS
EXECUTIVE SUMMARY .............................................................................................................................3
FOREWORD...................................................................................................................................................6
INTRODUCTION ...........................................................................................................................................7
PART 1 GLOBAL TRENDS IN SERVICES .............................................................................................10
1. Structural change in services .................................................................................................................10
2. The growing internationalisation of services sectors: from local to global ..........................................20
3. Knowledge and innovation in services on the rise ................................................................................33
4. Strong firm dynamics support employment growth in market services ...............................................39
5. Growing and complex interactions between manufacturing and services ............................................47
PART 2: AUSTRALIAN SERVICES IN INTERNATIONAL PERSPECTIVE .........................................62
1. A picture of the Australian services sector ...........................................................................................62
2. Drivers of services performance ............................................................................................................68
3. Australian services on international markets through exports ...............................................................89
CONCLUSIONS AND POLICY MESSAGES ..........................................................................................104
REFERENCES ............................................................................................................................................111
ANNEX 1 The size of commercial presence (Mode 3) versus services exports (Mode 1, 2 and 4) ...........118
ANNEX 2 Composition of Services Supplied Abroad................................................................................119
ANNEX 3 Extended Balance of Payments Services – EBOPS 2010 .........................................................121
ANNEX 4 Hypothetical Extraction: Deleting individual services sectors across the world, 2009 .............121
ANNEX 5 Average Wage by Industry ........................................................................................................124
ANNEX 6 Indicators of Skills at Work .......................................................................................................126
ANNEX 7 Australian Services Exports to Asia, 2005-2011 .......................................................................127
ANNEX 8 Source Data for the Charts in the Report ...................................................................................129
BOXES
Box 1. Baumol’s theory on the cost disease in/of the service sector ......................................................12
Box 2. Delivery over the Internet - digital content services....................................................................13
Box 3. Modes of supply in services trade ...............................................................................................20
Box 4. Statistics on the international tradability of services ...................................................................23
Box 4. Statistics on the international tradability of services (c’td) .........................................................24
Box 5. The OECD Services Trade Restrictiveness Index (STRI) - Engineering Services .....................32
Box 6. The OECD DYNEMP project .....................................................................................................40
Box 7. ‘The offshoring of services jobs’ .................................................................................................51
Box 8. Hypothetical extraction ..................................................................................................................59
Box 9. Services input to mining production and exports ...........................................................................66
Box 10. Measuring productivity in services .............................................................................................71
Box 11. Services Trade Restrictiveness: Australia ...................................................................................83
Box 12. Globalisation of Retail Services ..................................................................................................88
Box 13. Data sources used in the analysis of Australian services in international markets through
exports .....................................................................................................................................................95
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EXECUTIVE SUMMARY
Services have become a dominant feature of economic activity in developed economies and the wealthiest
economies derive the majority of their income and employment from services. The tertiarisation, i.e. the
growing importance of services, of OECD economies is driven by demand factors (such as rising incomes,
demographic changes resulting in ageing population, growing participation of women in the workforce,
etc.) as well as supply factors (in particular the higher growth rates in productivity for manufacturing than
in services).
The services sector is quantitatively the most important sector in Australia with market and nonmarket services contributing 70% of GDP and accounting for about 75% of total employment. Australian
services have recorded strong growth in value-added, employment, and exports during the past decade.
Services in Australia have significantly benefitted from the recent resources boom as the growth in national
income accompanying the commodity-price boom has triggered an economy-wide adjustment process with
the reallocation of productive resources towards (domestic) services;
The importance of the services sector for national economies is not only determined by its large size,
but also by the growing and complex interactions between services and other industries. Services are
increasingly used as important business inputs in the production processes of manufacturing, mining,
resources and agricultural industries. Services are often referred to as the glue that holds Global Value
Chains (GVCs) together and ensure that international production networks function in a smooth and timely
manner. In addition, services add significant value to manufactured products and assist to differentiate,
customise and upgrade products, and as such help to gain a competitive advantage. As such, services
increasingly contribute to the international competitiveness and the growth of OECD economies.
Structural change has been transforming knowledge and ICT-intensive services such as finance and
services, business services and telecommunications into dynamic industries in terms of growth,
productivity, jobs, new firm creation, new products, etc. The rise of these so-called ‘modern’ services is
strongly driven by technology, transportability and tradability; the services are largely provided via ICT
networks over long distances, in no time and without quality deterioration.
The growth-enhancing potential of knowledge intensive services, offers important growth
opportunities for Australia. With uncertainty growing over the economic prospects in emerging economies
like China and India, Australia needs to broaden its growth model to become less dependent on the mining
sector for economic growth. Because of their strong progressive characteristics, knowledge intensive
services are an important source of productivity growth and can help to turn around the downward trend in
Australian productivity. Increasingly, Australian services can be expected to suffer less from the tyranny
of distance than Australian manufacturing as internationally tradable services are to a large extent provided
over ICT networks and hence renders transports costs less important.
An international benchmark of knowledge intensive services point however to some structural
weaknesses in productivity and innovation within Australian services. For example, although knowledgeintensive services (especially financial services) have performed better in productivity than manufacturing
and mining in Australia, significant productivity gaps (in levels and growth rates) persist between Australia
and other countries in these industries. Nevertheless, international comparisons of productivity have to be
interpreted with care as measuring output and productivity (growth) is not straightforward, particularly in
services industries. But, while Australian services show innovation rates which are on par with other
OECD economies, knowledge intensive services are not (like in other OECD economies) taking the lead.
Instead, innovation performance is similar across services industries in Australia.
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Australia has a market share of about 1.4% in global services exports, which is double its market
share in world exports of manufactured goods; services are the second largest category of Australian
exports after natural resources. The strong performance of Australia in services exports is largely
attributable to travel services, especially tourism and education-related travel. Australia does not possess a
measured comparative advantage in other knowledge intensive services, which at the global level show the
largest export growth. It should be stressed, though, that knowledge-intensive services are to a large extent
provided abroad through the establishment of foreign affiliates (i.e. Mode 3 – commercial presence). This
of course needs to be taken into account in the analysis of the competitiveness of Australian service
providers abroad, but a lack of data prevents the assessment of the performance of Australian services
through this mode.
The economic development of Asia creates important business opportunities for Australia. Domestic
services sectors in emerging economies still lag behind the demand by both households and business,
resulting in rapidly growing imports of services in these countries. Until now, the growing importance of
Asia as a destination for Australian services exports is largely driven by Asian tourists and students going
to Australia. But the growing importance of GVCs in Asia including the rapid emergence of Asian
manufacturers as global players creates a strong demand for high-quality knowledge-intensive services; if
managed well, the complementarity between Asian manufacturing capabilities and Australian services
capabilities could create important growth opportunities for Australia.
The larger international tradability of services also means that foreign providers increasingly look at
the Australian market for new and improved business opportunities. The Australian market is relatively
open for foreign services providers, with only a number of restrictions applying (movement of people and
foreign ownership). The stronger competition can be expected to result in growing productivity,
innovation and a wider choice for Australian consumers. The growing international competition will also
force Australian firms to provide services more competitively by further developing their competitive
advantages but also addressing their weaknesses.
A lot of the policy discussion across OECD economies has centred on manufacturing because of its
importance for productivity (as a source of economic growth), innovation (as a source of productivity) and
international tradability (as a source of export income and productivity). Services have generally received
less attention but the growing size and the changing characteristics of services industries calls for a
changed focus of government policy, explicitly taking into account services industries.
While employment in a number of services sectors is concentrated at the low-end spectrum of the
skills distribution, the services sector in Australia also provides most of the high-skilled jobs which
underlines the importance of education and training policies for the further growth of services; human
capital is a crucial input into the provision of services because of the direct contact with services customers
but also for the necessary innovation in services; the different innovation characteristics of services
particularly calls for more attention to ‘softer’ innovation capabilities.
Firm dynamics in services industries show higher rates of entry and exit happening at a smaller scale
(relative to manufacturing); young firms are not only an important source of employment growth, but also
play an important role in experimenting with new ideas thereby driving innovation and economic growth;
conducive framework conditions (product market and labour market regulation, taxes, finance, etc.) which
allow successful businesses to grow, or failing businesses to exit, will be important in tapping the full
growth potential of services.
Services and manufacturing clearly show important differences across a number of policy domains,
such that the traditional measures which are more geared towards manufacturing, risk being less effective
for services. But instead of only focusing what distinguishes manufacturing and services from each other,
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policy should especially analyse what unites services and other sectors particularly now that GVCs have
become pervasive in the global economy.
The importance of services industries for policy is still not fully understood, which is considerably
linked to the small(er) availability of data and statistics. The heterogeneous character of services calls for
analysis at a granular level to capture the idiosyncratic characteristics of services, for example in
innovation, productivity, etc. Services are traded in a variety of modes, output is much more
heterogeneous, and regulation is much more complex. Statistical work on services is progressing rapidly
but nevertheless more policy evidence on services is needed, particularly on the international provision of
services through commercial presence.
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FOREWORD
This OECD study was commissioned by the Department of Industry of the Australian Government,
and is intended to provide input for the Australian Government as well as inform the public debate more
generally.
The report was prepared by the Structural Policy Division of the OECD Directorate for Science,
Technology and Industry under the direction of Koen De Backer who is also the main author. Isabelle
Desnoyers-James, Laurent Moussiegt, and Alexander Ragoussis significantly contributed to the report.
Copyright © 2014 Organisation for Economic Co-operation and Development (OECD)
Australian Services in the Global Economy © 2014 OECD
All rights granted herein are non-exclusive, worldwide rights to reproduce and publish the abovementioned
work in, print, electronic, online and accessible versions.
This permission does not allow translation of the work. Permission to translate is subject to a separate
agreement.
Due acknowledgement shall be given to the OECD by including a copyright notice on each of the studies
[© 2014 OECD] in accordance with the appropriate date indicated above, followed by the following
notice:
“The present study was produced by the OECD as background material for the work carried out by the
OECD Committee on Industry, Innovation and Entrepreneurship. The opinions expressed and arguments
employed herein do not necessarily reflect the official views of the OECD or of its member countries.”
Attribution-NoDerivs
CC BY-ND
This license allows for redistribution, commercial and non-commercial, as long as it is passed along
unchanged and in whole, with credit to you.
Page 6 of 184
INTRODUCTION
Services have become a dominant feature of economic activity in developed economies. The services
sector is, by far, the quantitatively most important sector in OECD countries. Market and non-market1
services account for about three quarters of GDP in the whole OECD area; only in a limited number of
OECD countries, services represent less than 60% of national GDP (Figure 1). In Australia, market and
non-market services accounted for 70% of GDP in 2011. The structure of emerging economies is relatively
less oriented towards services; countries like India and China which are going through an important
industrialisation process show growing shares of manufacturing in addition to agriculture.
FIGURE 1.
COMPOSITION OF GDP IN OECD AND BRIICS COUNTRIES, 2011
Value-added of major activity groups as a percentage of total industry value-added
Source: OECD Science, Technology and Industry Scoreboard 2013.
Because of their growing importance, services have received increasing attention within policy
discussions, but only recently. Confronted with a declining role of manufacturing in their national
economy, policy makers in OECD countries are increasingly looking to services as a source of not only
jobs, but also economic growth, productivity, innovation and international trade. Many aspects of services
however remain still poorly understood by economists and policy makers.
For example, despite the overall importance of services, it is not always clear what constitutes
services. One could argue that all value-added in an economy comes from services, that is, from factor
services: all production carries an explicit or implicit valuation which is a return to some (production)
factor for its services (Baghwati, 1984). In reality however, the services sector has long been considered as
a ‘residual’ sector, including everything what is not ‘agriculture, manufacturing, construction and mining’.
1
Non-market services are provided either free of charge or at prices that are not economically significant, meaning
in practice prices that cover less than half the cost of production. Government services constitute the bulk of nonmarket services, but there are others such as e.g. services provided by non-profit organisations.
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Further on, this ‘residual’ category of services is characterised by a large heterogeneity (some argue:
larger than manufacturing); the services sector is composed of a wide variety of different activities ranging
from fast food to brain surgery. Services sectors differ widely in their labour-intensity, knowledge intensity
and international tradability; they span both in the public and the private sectors, and can be market and
non-market in nature. Because of this large heterogeneity within services, no widely accepted definition or
classification exists.
In order to describe what services are, rather than what they are not, a number of characteristics have
been put forward to distinguish between services and goods: their intangible character and lack of
materiality, the inability to store or transfer (and trade) them and the necessity for direct interaction
between the producer and the consumer2. These ‘peculiarities’ are however not without exception; for
example, not all services are intangible, such as repair and transportation; some services produce a
‘tangible’ good like movies, consulting reports, etc. (Drake-Brockman, 2011). Further on, rapid structural
change within services has rendered some of these characteristics less meaningful during the past decade.
The ongoing digitalisation of certain service activities has facilitated direct cross-border sales of
disembodied services resulting in a disconnect between simultaneous production and consumption of
services. There are now certainly many more services that can be supplied through cross-border trade than
one or two decades ago, and there will be many more in the future.
The poor understanding of services explains to a large extent the lack or smaller availability of official
statistics on services. The measurement of real value of output, the value of inputs, or trade flows, are all
much more challenging in services than the rest of the economy. For example, the difficulty in estimating
services productivity results from their intangible nature, complexity of outputs and absence of
conventional markets. Lipsey (2009) discussed in more detail some of the problems in measuring trade in
services including the growing importance of intangible assets. Since these assets do not have a clear
geographical location, they can be easily transferred from one country to another, for example because of
tax reasons. This means that the production based on these assets (very often with a service character) and
the exports flowing from them will be attributed to countries which did not necessarily house the (physical)
production, nor the production factors used.
Services have in general been analytically and statistically elusive. It is only during the past decade
that significant progress has been made in collecting and developing better statistics on services; these new
data and indicators on services trade, innovation, etc. are at large used in this report. These better statistics
have broadened our view on the role of services in national economies. This report aims to deepen our
understanding on the importance of services in the Australian economy along different dimensions. It
should be stressed however that the analysis in this report will be, out of necessity, less detailed than the
discussion in a similar OECD report (2012) on Australian manufacturing (including indicators on
productivity, labour unit costs, scale, international orientation, comparative advantage, etc.).
Data availability for services is much more limited than for manufacturing, particularly if one aims to
discuss global trends and benchmark Australian services internationally. While more granularity between
different types of services would be directly relevant, the level of analysis in this report is determined by
the availability and quality of data on services across countries.
2
Some of these elements are reflected in the internationally agreed economic definition set out in the System of
National Accounts which states that services are ‘the result of a production activity that changes the conditions of
the consuming units, or facilitates the exchange of products or financial assets.’ Two major types of services are
distinguished, change-effecting services (which can apply to goods or to people) and margin services (which can
apply to goods and services).
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Indeed, the second objective of this study is to analyse the Australian services sectors in a global
perspective in order to discuss future opportunities and challenges for Australia on international markets
for services.
Part 1 discusses the global trends in services, in particular structural change, international tradability,
productivity and innovation, and firm and industrial dynamics in services sectors across countries. Specific
attention is devoted to so-called ‘modern’ services like financial services, telecommunication, professional
and business services, as these services categories have undergone profound changes in recent years and
provide major growth and business opportunities on an international scale.
Part 2 discusses these global trends from the perspective of Australia and compares the services sector
in Australia to other OECD economies in order to get a more detailed picture of the strengths and
weaknesses of Australian services. The report describes the place Australia currently occupies in global
services and benchmarks Australian services internationally along a number of performance dimensions.
Specific attention is paid to the position of Australian services in Asia, reflecting the growing importance
of regional Asian markets for Australian companies.
Part 3 summarises the main findings of the analysis and presents major policy implications for
Australia in services sectors.
This study uses a traditional ‘industry of origin’ approach3, including distribution services (wholesale,
retail, transport and storage, communications), producer services (property and business services and
finance and insurance), personal services (accommodation, cafes and restaurants, personal and other
services and cultural and recreational services) and social services (health and community services,
education and government administration and defence)4. This study excludes construction and utilities, in
contrast to for example the 2002 Services Study by the Australian Productivity Commission.
National and international data sources have been used to provide the much needed evidence on the
Australian services sectors in a global perspective. While the presented results have been developed to
maximise international comparability across countries, some care has to be taken into account in using and
interpreting the empirical evidence.
3
Alternatively, some have used an approach focusing on services in final expenditures, distinguishing between
housing, medical care, education, etc.
4
Most services statistics in Part 1 are classified according to the ISIC-3 classification with services including
Categories G to Q (50 to 93); market services are defined as categories G to K (50 to 74). However a number of
indicators (e.g. productivity) are based on the new ISIC-4 classification with services including Categories G to S
(45 to 96); market services are correspondingly defined as categories G to N (45 to 82).
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PART 1 GLOBAL TRENDS IN SERVICES
1. Structural change in services
The tertiarisation of OECD economies
The world economy has shifted markedly towards services in recent decades as many OECD
economies have witnessed a declining presence of manufacturing with a concurrent rise in the importance
of services. Today's wealthiest economies have been deriving most of their income and employment from
services. According to the most recent OECD data, the services sector accounts for over 74% of total
employment and 71% of the aggregate value-added generated in the OECD area.
Economic development of countries is reflected in a shift from primary production to manufacturing,
and later to services (the so called ‘tertiarisation’ of western economies). In the initial stages of economic
development, agriculture typically accounts for the bulk of GDP and employment, as is still the case in
many developing countries. In later stages, the share of agriculture in total value-added and employment
typically declines and the manufacturing sector grows as economies industrialise 5. Most OECD economies
are beyond this stage now and are characterised by a long-term trend of deindustrialisation (i.e. a
decreasing importance of manufacturing) with services accounting for a growing share of national
employment and value-added (Figure 2)
FIGURE 2.
SHARE OF SERVICES IN AGGREGATE VALUE-ADDED AND EMPLOYMENT,
1995-2011
Employment
Value-added
Notes: Employment refers to persons employed; value-added is reported in constant prices.
Source: OECD Structural Analysis (STAN) Database
A number of factors at the demand side as well as at the supply side explain the continuing
tertiarisation of OECD economies. First, rising incomes have resulted in a growing final demand for
services and significant shifts in private domestic consumption6. Demand for services is traditionally
5
However, some countries may ‘leapfrog’ in services thereby foregoing deep industrialisation (The Economist,
2011; Ghani et al., 2011).
6
Early work by Kuznets (1957) and Fuchs (1968) established that the services share of GDP tended to rise with
GDP per capita, a fact that was attributed to high income-elasticity of demand for services relative to other
sectors. This explanation was challenged later by researchers although the empirical fact of a disproportional rise
in services output at later stages of development remains solid.
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perceived to be income elastic, implying that an increase in incomes will lead to more than proportionate
increases in the demand for services. This is typically considered to be the case for services such as leisure
activities, high quality health and care services, higher education or other services, e.g. travel, that may
contribute to an improved quality of life.
Second, some services sectors are faced with growing demand due to factors other than incomes, e.g.
demographic changes. Longer life expectancy in industrialised countries is resulting in a rapidly ageing
population, so that demand for certain services (e.g. health and personal services) is rising. In addition,
changes in life styles (hotels and restaurants, tourism, creative industries), growing participation of women
in the workforce (personal services) or the growing use of the internet (computer services,
telecommunications) have also been affecting final demand patterns for services. Lastly, demand for some
services, notably education and health services, are closely linked to the size of welfare states in OECD
countries. Previous empirical work has reported a significant positive effect of the size of the welfare state
on the share of services in total employment (OECD, 2000).
Third, the growth of the services sector in national economies is also spurred by the growing
intermediate demand for services, as services are increasingly used as intermediate inputs to other
industrial activities (see below). Outsourcing of services activities is more common today than it was in the
past and this this is not only confined to entire service functions but also individual services tasks that have
increasingly been outsourced and offshored (see Grossman and Rossi-Hansberg, 2008; Lanz et al., 2011,
for work on the so called ‘trade in tasks’).7
At the supply side, differences in productivity growth between services and (especially)
manufacturing helps to explain the structural shift towards services in OECD economies (in employment
as well as value-added particularly in current prices). Outlined in Baumol’s (1967) stylised model of
unbalanced growth, differential productivity growth rates result in the re-allocation of resources (i.e.
employment) towards the “stagnant’ services sector (see Box 1). Because of the relatively high
productivity growth in manufacturing, prices of manufacturing products tend to increase only little over
time and may even fall. This contrasts with the experience of many parts of the services sector, where
productivity growth has been slower and prices tend to go up more strongly over time. Consequently,
manufacturing products have become relatively cheap and therefore account for a smaller proportion of
GDP than they did before (Pilat et al., 2006).
Because of the limited potential for productivity growth in some services industries, Baumol argued
that the shift to un-progressive services will drive down the long-term economic growth of OECD
economies. Some have attributed the productivity slowdown in the 1970s and early 1980s to this model of
unbalanced growth, although others argued that conceptual and empirical problems in measuring output
and prices led to an important mismeasurement of productivity in services sectors (Triplett and Bosworth,
2000; Griliches, 1994).
More fundamentally, the assumption that all services are by definition ‘stagnant’ or ‘unprogressive’
industries is no longer valid; heterogeneity within services was already large and has only increased due to
technical progress in the past decades.
7
This is also due to a statistical artefact as many in-house service activities have been outsourced by manufacturing
companies (cleaning, transport, etc.).
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BOX 1. BAUMOL’S THEORY ON THE COST DISEASE IN/OF THE SERVICE SECTOR
The main idea behind Baumol’s theory of Cost Disease is that the tendency of unbalanced growth across sectors
induces resource re-allocation towards the slowly growing or stagnant sector, eventually slowing down aggregate
growth. Baumol’s (1967) views derive from the assumption that the economy consists of two distinct sectors. The first
is a growing (manufacturing) sector, characterised by rapid technological progress, capital accumulation, and
economies of scale. The second one is a relatively stagnant (service) sector, consisting of services such as education,
performing arts, public administration, health and social work. Due to the nature of this second sector, any potential for
technological progress in this sector would only be temporary. These services might thus be subsidised by an eventual
increase in the costs that would have to be incurred in providing them.
The crucial point for differentiation between the two sectors lies in the role of labour. In the first sector, labour is mainly
an input in the production of some final good. In the second sector, labour is rather an end in itself. In order to stress
the point, Baumol assumes that labour is the only input into production, with the total supply of labour being constant.
Furthermore, wages in the two sectors are assumed to change in parallel to money wages, and thus to income in the
economy, rising as rapidly as output per man hour in the growing sector. As a consequence, costs (i.e. wage costs)
would steadily increase in the stagnant sector, while costs could be held constant within the growing sector, due to the
productivity growth that can be achieved there.
This leads to two possible scenarios of inter sectoral resource allocation and aggregate economic performance. In the
first scenario, there is a tendency for the output of the stagnant sector to disappear. This would mainly be the case if
demand for the service industries is not highly price or income inelastic. In the second scenario, however, the relative
supply of both sectors’ goods is assumed to be constant. Either the demand for stagnant sectors’ goods is highly price
inelastic, as is the case for social and health services, or production of these sectors is subsidised, as is the case in
cultural services. In this second scenario, an increasing share in labour would have to be transferred to the stagnant
industry, while the share of labour allocated to the growing industry would eventually approach zero. In the long term,
the second scenario would lead to declining aggregate productivity growth, as the weighted average of the two sectors,
with the weights being the relative employment shares of each contributing sector.
Despite the intuitive appeal of Baumol’s argument and its foundation in empirical evidence during the 1960s, two
factors argue against declining aggregate productivity growth. First, not all service industries are stagnant; ICT use, for
instance, has contributed to improved productivity growth in the services sector in several countries (see also Baumol,
Blackman and Wolff, 1985). Second, declining aggregate productivity growth might only occur if these service
industries produce final goods, not if they produce intermediate inputs (Oulton, 1999, and Fixler and Siegel, 1999).
Source: Wölfl (2005)
The rise of ‘modern’ services and the growing progressive character of services
The assertion that productivity improvements in services are harder to achieve than in goods
producing industries is traditionally explained by the labour-intensive character of services and especially
the face-to-face interaction necessary to deliver these services. Technological innovations combined with
new business models however have profoundly altered the nature of services provision and structure for
certain categories of services. Baghwati (1984) described a process of splintering and disembodiment of
services such that services initially embodied in the person providing them and thus requiring the physical
presence of the service provider have become increasingly disembodied as a result of technical progress.
Important obstacles to the international delivery of services have been eliminated as new means of
supplying services remotely have been developed (see for example Box 2 for a discussion on service
provision via the internet).
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BOX 2. DELIVERY OVER THE INTERNET - DIGITAL CONTENT SERVICES
Over the past five years, digital content (i.e. goods and services that are downloaded, streamed or hosted
over the Internet) has developed rapidly. The increase in digital content availability and heavier Internet
use have not only transformed consumer behaviour – digital content is arguable the most important driver
of consumer Internet adoption- but also challenge traditional business models. The switch to digital
technologies has forced business in a growing list of sectors to rethink business models in order to survive.
The growing marketplace for digital content is spurred by increased convergence of delivery channels and
platforms online and has resulted in a shift from physical media to delivery over the Internet. The digital
content available over the Internet is increasingly delivered over two different types of networks: wired
broadband and wireless mobile networks. High-speed Internet connections on both platforms are becoming
the foundation for innovation in the digital content sector. In addition, during the last years, however, users
have adopted, en masse, the powerful combination of smart handheld devices and mobile Internet
connectivity.
Digital content includes more traditional products like music, films, computer and video games; a recent
development is the growth of user-created content (UCC) which can be defined as content that is made
publicly available over the Internet, which reflects a ‘certain amount of creative effort’ and is ‘created
outside professional routines and practices’ (OECD, 2007). There are a variety of UCC platforms like
blogs, social network sites, podcasting, wikis, etc.
Global consumer demand for buying and using digital content products across multiple channels and
platforms is increasing. In 2010, games led global consumer demand, accounting for an estimated 39% of
digital revenues. According to the International Federation of the Phonographic Industry (IFPI), digital
music worldwide accounted for about 29% of recording companies’ revenues, with the United States
constituting the largest marketplace. Digital music revenue amounted to more than four times that of the
combined online revenues generated by the book, film and newspaper industries (IFPI, 2011), although
these other industries are much larger overall. According to the Pew Internet & American Life Project,
music, software and applications were the most popular digital content purchases in the United States in
late 2010, although games, e-books and news articles also featured among the intangible digital products
purchased by consumers. Figures for newspaper, magazine and/or journal articles or reports were much
lower: just 18% of consumers stated that they had paid to access or download these types of digital content.
The majority of users preferred paying for subscription services (23%) as opposed to downloading
individual files (16%) or streaming content (8%) (Jansen, 2010).
Business models are rapidly adjusting to allow the delivery of sophisticated, integrated broadband content
offers that cover a range of digital content. Companies must innovate constantly to survive; adapt to
changes in product content and delivery means; provide better quality, higher speed at lower prices, better
payment facilities and better coverage and improve customer service. As online businesses strive to remain
competitive and to gain market share, growing Internet uptake in emerging markets is pressuring
companies to search for new frontiers, and to adapt to changing consumer preferences and environments.
New business models are emerging, some of which mirror offline models (e.g. pay-per-item digital content
sales) and some of which are new (e.g. sale of virtual items or professional subscription accounts). New,
complex value chains involve a number of newPage
actors,
and184
the changes, maturity of business models and
13 of
user acceptance differ across the different sectors in digital content (see table below).
Ghani and Kharas (2011) argue that the so-called 3 T’s (technology, transportability and tradability)
have given rise to a category of progressive services labelled by Mishra et al. (2012) as ‘modern’ services.
These modern services are more similar to manufacturing goods in the sense that they can be digitally
stored and more easily traded. Technological progress particularly in ICT has increased the codifiability of
certain services, giving them a physical and storable presence (e.g. financial products, telecommunications,
data, etc.). Via ICT networks (telecom networks, internet, satellite, etc.), these services can be
electronically transported over long distances in no time and without quality deterioration.
The increased transportability has in turn thus rendered services more internationally tradable.
Services that were not traded at all are now more often exchanged across borders. The fact that service
provision requires lower spatial and temporal interaction allows providers to reach out to more customers
and attain the scale thresholds for standardising their services. This goes hand in hand with a trend of
‘modularisation’ as this overcomes the dichotomy between standard and customised services (see Baldwin
and Clark, 1997; Tether et al., 2001). Recent evidence indeed shows a move towards tailoring new services
to individual customer needs, while retaining the cost advantages associated with standardisation and scale
(Glazer, 2007).
‘Modern’ services are as such not distinguished as a separate category in statistical classifications on
services, but indirect evidence presented below indeed points to the growing importance of this category of
services in OECD economies. Typically more ICT intensive than other categories, the group of modern
services is mostly observed within the group of knowledge-intensive ‘market services’ like
telecommunications, financial services and business services (like engineering, consulting, etc.) 8. It should
be noted however that in recent years, also specific categories in transportation, logistics, wholesale and
retail services as well as some non-market services such as health and education (e.g. distance learning)
also increasingly include ‘modern’-type services.
Business services, and to a lesser extent financial services, have grown more strongly than other
services sectors in the OECD as well as in Australia, reflected in their rising share in services value-added,
employment between 1995 and 2009 (Figure 3). The above-average growth of financial intermediation and
real estate/business services is highest in terms of exports, clearly illustrating the growing tradability of
these services. The growing importance of these sectors is less outspoken in employment which is most
likely related to the important productivity enhancements in these services sectors.
The results in Figure 3 seem to show less support for the rise of telecommunications services;
however, data for telecommunications are only available combined with data on transport and storage
which may show diverging results. Further on, general trends in prices and quantities have moved in
opposite directions for this broad group of distribution services, which may result in decreasing shares in
nominal currencies like value-added and exports.
8
Knowledge-intensive market services include categories 64 (Post and telecommunications), 65-67 (Finance and
insurance) and 71-74 (Business services excluding real estate) in the ISIC-3 classification. According to ISIC-4,
knowledge-intensive services include categories (Information and communication), 64-66 (Finance and insurance)
and 69-75 (Professional, scientific and technical activities).
Page 14 of 184
FIGURE 3.
COMPOSITION OF THE SERVICES SECTOR IN OECD AND AUSTRALIA, VALUEADDED, EMPLOYMENT AND EXPORTS, 1995 AND 2009
VALUE-ADDED
Australia
OECD
EMPLOYMENT
Australia
OECD
EXPORTS
Australia
OECD
Note: TRD: wholesale and retail trade; HRE: hotels and restaurants; TSC: transport, storage and communications; FIN: financial
intermediation; RBA: real estate and business activities; PAD: public administration and defence; EDU: education; HSW: health and
social work; CSP: community, social and personal services
Source: OECD Structural Analysis (STAN) Database OECD-WTO Trade in Value-Added (TiVA) Database
Page 15 of 184
The rise of modern services strongly contributes to the growing progressive character of services, and
as such a more positive and optimistic view on the role of services in national economies. The tertiarisation
of OECD economies raised questions among policy makers and Baumol’s cost disease’ had – in some
countries more than others – significantly influenced policy thinking about structural change in OECD
economies.
Large discussions about the need for (re-)industrialisation have been taking place in many countries as
manufacturing is still considered to be the engine of economic growth because of its contribution to rapid
technical progress and strong economies of scale (Kaldor, 1967). In general, services have received less
attention in the policy debate as they have traditionally been labelled as ‘un-progressive’.
Indeed, discussions on manufacturing versus services typically focus on the progressive character of
manufacturing in terms of productivity (as a source of economic growth), innovation (as a source of
productivity) and international trade (as a source of export income and also productivity) 9. But the fact that
services have dramatically changed over time with certain services increasingly displaying these
progressive characteristics of manufacturing underlines the increasing growth-enhancing potential of
services.
Modern services are characterised by high and growing productivity, knowledge-intensity and
international tradability. Just like manufacturing goods, some services benefit from technological advances
and specialisation through the division of labour, economies of scale and network effects (Mishra et al.
2012). Some analysis argues that services will be next growth escalator including in developing economies
(Ghani et al., 2011).
The contribution of services sectors to aggregate (labour) productivity growth has been rising in most
OECD countries10. Productivity estimates for manufacturing and total market services show that
manufacturing still shows the highest growth of labour productivity. A detailed look at individual services
categories shows that particularly the groups of wholesale, retail and accommodation and transport and
storage are characterised by lower productivity growth (Figure 4).
‘Modern’ – knowledge- and ICT-intensive, services such as information and communication and
finance and insurance show much higher growth rates of labour productivity over the last 10 years. These
significant productivity increases in (modern) services combined with their growing relative size has
resulted in a growing contribution of market services to aggregate labour productivity growth (Figure 5).
Services increasingly determine the overall labour productivity growth, and thus economic growth, in
OECD economies. This is especially the case in Australia where the contribution of market services
accounts for more than three quarters of total labour productivity growth.
9
See OECD (2012a), Australian Manufacturing in the Global Economy, prepared for the Australian Government.
10
The progressive character of services in terms of international tradability and innovation will be discussed in
separate sections below.
16
FIGURE 4.
GROWTH IN LABOUR PRODUCTIVITY BY SECTOR
Percentage change at annual rate
Notes: Manufacturing refers to ISIC Rev.4 C.; Market services excl. real estate refers to ISIC Rev.4 G to N excl. L.; Trade; transport;
accommodation, food refers to ISIC Rev.4 G to I; Information and communication refers to ISIC Rev.4 J; Finance and insurance
refers to ISIC Rev.4 K.; Professional, scientific and support activities; administrative and support service activities refers to ISIC Rev.
4 M to N.
17
Source: OECD Compendium of Productivity Indicators 2013.
18
FIGURE 5.
INDUSTRY CONTRIBUTION TO GROWTH IN REAL BUSINESS SECTOR VALUEADDED PER HOUR WORKED
Percentage point contribution at annual rate
19
Notes: The business sector is measured as the non-agricultural business sector excluding real estate. It covers mining,
manufacturing; utilities; construction; and market sector services. The latter cover distributive trade, repair, accommodation, food and
transport services; information and communication; financial and insurance; professional; scientific and support activities.
Source: OECD Compendium of Productivity Indicators 2013.
2. The growing internationalisation of services sectors: from local to global
Different modes of supplying services abroad
Technological progress particularly in ICT (as discussed above), deregulation of previously closed
service industries and multilateral efforts to liberalise service trade have allowed services companies to
enter new markets outside their home market. On the demand side, the emergence of an exponentially
growing middle class in emerging economies has opened up new markets for financial services, health,
education and tourism (WTO, 2012a). As a result, services sectors have become increasingly
internationalised; in general, the internationalisation of services takes place through four different modes of
supply, depending on the territorial presence of the supplier and the consumer at the time of the transaction
(see Box 3 for definitions and examples). Only in Mode 1 (Cross-border supply), services are transferred
between countries; Modes 1 and 3 (respectively ‘cross-border supply’ and ‘commercial presence’) do not
involve movement of people while Modes 2 and 4 (respectively ‘consumption abroad’ and ‘presence of
natural persons’) do.
BOX 3. MODES OF SUPPLY IN SERVICES TRADE
Cross-border supply (Mode 1) takes place when a service is supplied into the territory of another country
without anybody moving. This is similar to trade in goods where the product is delivered across borders
and both the consumer and the supplier remain in their respective territories. Financial services or
brokerage services across the border are typical examples of services traded predominantly through that
mode.
Consumption abroad (Mode 2) occurs when the consumer moves to the territory of the supplier for the transaction to
occur. Tourist services, education or persons travelling abroad to receive medical treatment are typical examples of
that mode.
Commercial presence (Mode 3), takes place through established presence of the supplier to the territory of the
consumer. This mode corresponds essentially to establishment of facilities or permanent presence through Foreign
Direct Investment. The value of trade corresponds to the value of sales by foreign affiliates. Typical examples of such
presence are telecommunications and private banking.
The presence of natural persons (Mode 4) occurs when an individual (and not a firm like in mode 3) is temporarily
present in the territory of an economy other than his own to provide a commercial service. Mode 4 is generally
understood as covering contractual services of suppliers (such as self-employed, intra-corporate transferees, and
foreign employees directly recruited by foreign established companies).
The choice for one or another mode of supply depends on a broad range of different factors. First,
sectoral characteristics explain to a large extent the dominant mode that is chosen for services provision.
Education for example involves large trade under Mode 2 with students moving in order to study in a
20
foreign university11. Second, mode-specific regulatory restrictions also affect the decision as countries may
apply, for example relatively high restrictions in the movement of people and/or when red-tape and
restrictions to foreign ownership are common. If regulation makes it costly to establish a commercial
presence, services suppliers most likely decide to serve the market through temporary movement of people.
Third, important complementarities exist between different modes. For example, a foreign company
established under Mode 3 may contract the services of nationals from the home country (Mode 4) to export
services cross-border abroad (Mode 1). Business visits (Mode 4) may be necessary to complement crossborder supplies into another country (Mode 1) or to upgrade the capacity of a locally established office
Mode 3). It is clear that because of such complementarities barriers of any nature in one mode of supply
may also adversely affect rather than boost trade in another mode (Fillat- Castejón et al. 2008; Nordås and
Kox, 2009). For example, cross-border trade of business, communication and financial services is found to
increase when commercial presence increases, rather than when it is restricted (Fillat-Castejón et al.
(2008). Also Pain and van Welsum (2004) report on the complementarity between outward investment
and trade in services.
In general, the more similar a country pair is in terms of business environment and regulation, the
more commercial presence appears to be the preferred mode of supply. Heterogeneity duplicates
compliance costs in new markets (which are typically higher for commercial presence than for crossborder supply), hence differences in regulation can be as important for the choice of mode as is the level of
regulation. Estimates show that if all countries would harmonize or recognize each other’s regulation, total
services trade through commercial presence could increase by between 13% and 30% depending on the
country (Nordås and Kox, 2009).
Also the remoteness of a foreign country is a determinant of whether to establish commercial
presence, like in the case of goods. Yet trade-offs are different and more complex in the case of services12.
In addition to cross-border trade and commercial presence that are available to goods’ producers, Modes 2
and 4 in services trade involve also a variable cost for the movement of people that rises with distance.
Commercial presence will hence be preferred only when interaction with customers is necessary for the
efficient provision of services, or when the establishment of such lasting relationships with customers
boosts rents to a level that exceeds the fixed costs of commercial presence (Oldenski, 2012).
Available, albeit limited, evidence demonstrates the growing international tradability of services
Statistics on the international supply of services (see Box 4) show that commercial presence is the
preferred mode of supply for services13. Estimates by the WTO suggest that the value of services supplied
through foreign affiliates (Mode 3) represents about 55% of total services supplied abroad and is thus
higher than the value of exported services (Table 1; Maurer and Magdeleine, 2011). Data for individual
countries seem to confirm the importance of affiliates’ sales for the globalisation of services 14. The
11
In recent years, one observes an increasing importance of other modes for supplying education services abroad:
distance and on-line education (Mode 1), the development of affiliates abroad of education providers (Mode 3)
and teachers/lecturers travelling abroad (Mode 4).
12
In the goods’ export versus FDI literature, the decision to produce at home or in the destination market is based on
a trade-off between economies of scale achieved by concentrating production in the home country and the
avoidance of transport costs through commercial presence that rise with distance (see Markusen, 2002, for an
integral analysis of this trade-off).
13
Even when cross-border trade is more feasible due to technological improvements (Francois and Hoekman, 2009;
Nordås and Kox, 2009; Oldenski, 2012).
14
The availability and quality of the data however calls for caution in interpreting the presented results and may
explain the results of some countries. First, not all countries collect statistics on AMNE activities abroad, and not
21
turnover of foreign affiliates abroad active in service industries is in many countries a multiple of the
services exports of these countries, though important differences exist across reporting countries (see
Annex 1). This mode of supply of services abroad via foreign affiliates has significantly grown over the
years: services sales of foreign affiliates abroad have consistently increased up to the financial/economic
crisis in 2008/2009 (Figure 6). Preliminary figures for 2011 and 2012 however suggest that services sales
are on the rise again.
for all (services) sectors. Second, MNE surveys typically show a lower coverage for outward investment
(compared to inward investment). Third, the turnover of foreign affiliates in services sectors does not necessarily
equal services sales (e.g. some services firms might also sell goods, while also reversely manufacturing companies
may sell services separately from their goods).
22
BOX 4. STATISTICS ON THE INTERNATIONAL TRADABILITY OF SERVICES
Upon conclusion of the General Agreement on Trade in Services (GATS) and the definition of
international trade of services encompassing four modes of supply, the Task Force on Statistics of
International Trade in Services which is now composed of seven international organisations (including
OECD, WTO and IMF) started to develop recommendations for methodologies on measuring trade in
services. The Manual on Statistics of International Trade in Services (MSITS 2002, 2010) provides
guidelines to develop statistics on the international supply of services abroad providing statistical criteria to
develop statistics for the four modes of supply (see figure below).
Statistics on the international tradability of services
Source: Maurer and Magdeleine (2011)
Data on services sales by foreign affiliates – commercial presence (Mode 3) are collected within the
Survey of Multinational Enterprises, particularly in the EU and the United States. Australia conducted a
survey on MNEs in 2002-2003 and more recently, a new survey was undertaken in 2008/2009 focusing
exclusively on the sector of financial services. A lot of countries however do not collect statistics on this
Mode 3; FDI statistics are often used as a proxy for affiliates sales for countries where no MNE data are
available although this has some drawbacks (e.g. FDI is a financial concept which does not necessarily
measure ‘real’ investment as it is increasingly affected by the activities of Special Purpose Entities
(SPEs)). UNCTAD reports that the share of services in outward FDI has consistently increased over the
years and accounts for almost 70% of world FDI stock.
Exports and imports of services are provided within the Balance of Payments (BOP) statistics and cover
Modes 1, 2 and 4. Data on trade in services are not as widely available as on trade in goods; for example,
the HS classification for trade in goods includes around 5300 products/articles (6-digit, although some
countries have more detail on 9 and even 12 digit- level). Data on services trade under the latest Balance
of Payments Manual sixth edition (BPM 6), more specifically in the Extended Balance of Payments
Services (EBOPS – 2010) classification) counts around 140 services categories. Australia being the first
OECD country to implement BPM6, releases 7000 disaggregated trade categories for goods and 70 service
23
trade categories for trade with partner country (Drake-Brockman,
2011).
Box 4. Statistics on the international tradability of services (continued)
As international transactions may be composed of several modes of supply, the different modes of supply (1, 2 and 4)
cannot be distinguished in the exports and imports reported within BOP. Derived from the definitions of the GATS, the
MSITS 2010 proposes a simplified allocation of the EBOPS-2010 services categories across the different modes of
supply. Transport (except supporting and auxiliary services to carriers in foreign ports, which should be allocated to
Mode 2), insurance and pension services, financial services, telecommunication services and information services and
to a certain extent charges for the use of intellectual property n.i.e are deemed to be predominantly provided via Mode
1 (Cross-border supply). Services recorded under manufacturing services on physical inputs owned by others,
maintenance and repair services n.i.e. and travel (i.e. excluding goods) should be allocated to Mode 2 (consumption
abroad). Combined Modes 1 and 4 transactions are often found in computer services, other business services
(research and development services, professional and management consulting services etc.) and personal, cultural,
and recreational services; construction services recorded in BOP may be provided through Mode 3 and Mode 4 (see
figure below).
Statistics on the international tradability of services
Source: Maurer and Magdeleine (2011)
24
TABLE 1. THE DIFFERENT MODES OF SUPPLYING SERVICES ABROAD, WORLD,
STATISTICAL APPROXIMATION, 2005
Mode 1.
Mode 2.
Mode 3.
Mode 4.
Cross-border supply
Consumption abroad
Commercial presence
Presence of natural persons
Percentage
25-30
10-15
55-60
Less than 5
Source: Maurer and Magdeleine (2011)
FIGURE 6. Turnover of affiliates abroad in the services sector, selected sample of OECD countries 1
USD billion
Note: Data for Austria, Belgium, Canada, Finland, Germany, Japan and the United States.
Source: OECD, Activities of Multinational Enterprises (AMNE) database.
Data on the exports of services, largely capturing Modes 1, 2 and 4, show that services have become
increasingly tradable across borders with average annual growth rates of services exports close to 10%
(which is slightly higher than growth in merchandise exports; Figure 7)15. Services overall remain less
traded than manufactured goods when looking at gross trade data. Indeed, for some services production
and consumption still coincide spatially and temporally and services seem overall to be more sensitive to
cultural and language barriers than goods. Further on, regulatory frictions and state intervention still play a
role in some services sectors thereby limiting domestic and international competition in some services
sectors.
However, it should be stressed that manufacturing exports include to a large extent value-added that is
created in services sectors. The value of a large number of (tangible) goods stems to a large extent from
services; Bryson and Daniels (2010) put forward that service functions now comprise 70-80% of the
15
Lipsey (2009) however notes that growth figures in services trade have to be interpreted carefully, particularly if
they go back a long time; not only the number of countries reporting services trade is increasing but also the
number of services categories reported on have increased over time.
25
production costs of most manufacturing firms. In looking at trade in value-added instead of gross terms,
the recent OECD work on Global Value Chains and Trade in Value-Added has demonstrated that the
internationally tradability of services is actually much larger than international trade statistics indicate (see
below).
FIGURE 7.
GROSS EXPORTS OF GOODS AND SERVICES
1996-2012 GROWTH (1996 = 100)
2012 LEVEL (IN BILLION USD)
Source: IMF Balance of Payments
Looking at which categories of services are supplied abroad, available AMNE data suggest that
wholesale, retail, repair and trade is the most important sector for Mode 3: more than 50% of the turnover
of foreign affiliates in services originates in these industries. Other important services industries for
commercial presence are finance and insurance and information and communication (see Annex 2). FDI
data (outward stock figures, available for a larger number of countries but in a slightly different industry
classification) suggest that Mode 3 is especially important for other business services. In line with AMNE
data, finance and insurance is also found to be important in FDI data on commercial presence.
Services exports data, which are classified according to services categories instead of services sectors
(see Annex 3 for the EBOPS 2010 classification), indicate that transport, travel and other business
activities are the most important services categories traded in the world. Each of them accounted for a bit a
less than one quarter of total world exports. Other services categories are in general less traded (see Annex
2).
Internationalisation of intermediate services
Intermediate services are at the forefront of the internationalisation in services sectors: the majority
(more than 80%) of services exports are destined for intermediate use in other countries. The exports of
business services, financial services and transportation services serve especially as services inputs in the
production of goods and services in other countries. Less dependent on final consumer preferences and
cultural barriers they may be the vehicle for fastest internationalisation in services.
26
But intermediate services also internationalise through downstream industries. Services value-added is
to a large extent embodied into the output of other domestic industries (especially manufacturing), which is
then subsequently more easily exported. The largest part of the (domestic) services value-added that is
exported is indirect, i.e. services value-added is included in exports of non-services industries like
manufacturing, mining, etc. (Figure 8).
In fact, the internationalisation of some of the less tradable services is more often realised via the
intermediary of other more tradable industries rather than through direct exports. Legal services for
example that are relatively hard to sell directly cross-border are used intensively within the domestic
market by export-intensive firms in other industries. Value-added from legal services could hence be
exported indirectly much more intensively than directly by law firms.
FIGURE 8.
COMPOSITION OF SERVICES VALUE-ADDED EXPORTS: DIRECT, INDIRECT,
RE-IMPORTED AND FOREIGN, 2009
Note: The bars show the composition (in %) of services value -added that is exported by countries: ‘direct domestic’ is services valueadded that is created domestically and is exported as services by the country in question; ‘indirect domestic’ is services value- added
created domestically and is included in the exports of non-services sectors (manufacturing, mining, agriculture, etc.) of the country in
question; ‘reimported domestic’ is services value-added that has been created domestically, was then exported and then re-imported
in the country in question and is then again exported (in services and non-services exports) by that country; ‘foreign’ concerns
services value-added created abroad which has been imported in the country in question and is included in that country’s exports.
Source: OECD Trade in Value-Added (TiVA) Database, May 2013
These embodied services go unnoticed in international trade statistics on services - as they are counted
as manufacturing, agriculture or mining exports – and hence are an important source of underestimation of
the actual tradability of services. The OECD-WTO Trade in Value-Added (TiVA) database shows that on
average around 45% of the value of exports in OECD countries is services value-added (OECD, 2013c) –
compared to the services share of 25% in gross trade. For example, in the United States, the United
Kingdom, France, Spain and Singapore, the services sector contributes 50% or more of total exports in
value-added terms, while the share of services lags significantly in these countries’ exports in gross terms
(Figure 9). For Australia, the export share of services almost doubles switching from gross (21%) to valueadded terms (40%).
27
FIGURE 9.
SERVICES AS A SHARE OF GROSS AND VALUE-ADDED EXPORTS, 2009
Source: OECD-WTO Trade in Value-Added (TiVA) Database.
Comparative advantage in downstream industries may thus contribute to a large extent to the
international specialisation in services industries. For example, comparative advantage in mining has the
potential to boost domestic demand for specific services such as transport that grow disproportionally more
than other services. This also means that the globalisation of services firms in some industries could be
promoted effectively through indirect linkages in the domestic market, that have ultimately little to do with
trade policy. Industrial and innovation policies targeting services could potentially have an impact on
services value-added exported that is comparable to what is achieved by trade policies.
New importers and new exporters of services
While services trade was for many decades a North-North phenomenon, over the past ten years the
picture has changed significantly. Imports and exports of services by emerging economies are growing at a
very high pace. China’s exports in services experienced a five-fold increase in the past decade recording a
year-on-year growth of over 26% (WTO, 2012b), but started of course from a low benchmark. India and
other Asian countries have also significantly increased their services exports just like Brazil; the rest of the
developing world (Africa most notably) however has remained rather uninvolved in the trend16.
While both imports and exports of services from fast growing economies are on the rise, imports are
expanding disproportionally more. China and Brazil run large structural service deficits according to the
latest WTO data, and surprisingly India also runs deficits in some key sectors such as financial services.
The reason is that, although emerging markets have grown significantly over the past two decades, their
domestic services sectors still lag behind demand by both households and businesses. Sophisticated
services from mature providers are increasingly sought in emerging economies. Moreover, greater access
to emerging markets, the opening of services sectors and the improvement of communication and transport
infrastructures has increased the import penetration for services in these countries. Overall, import
penetration in services has deepened substantially over the past decade in emerging Asian markets (Figure
10) attesting to the emergence of new opportunities for exports from developed countries.
An illustration of how rising wealth in emerging markets boosts the demand for foreign services is the
growth in tourism and education services imports. China’s transport services imports increased by 27.0%
16
Part 2 analyses to what extent Australian services have benefitted from these developments.
28
and travel by 32.2% in 2011 alone (WTO, 2012b), due to a combination of higher personal disposable
incomes and better integration of the local transport network with the rest of the world. But business
demand for services is also rising: growing manufacturing production in South East Asia has created high
demand for business, financial and transport services, which is only partly served by domestic suppliers.
Similar observations come clear in services affiliates’ sales abroad (Mode 3 – Commercial presence)
showing that outward investment in services goes to developed but increasingly also emerging economies.
US affiliates abroad realise an increasing share of their services turnover in emerging economies: the share
of emerging economies increased from 24% in 2000 to 30% in 2010. The same applies for Japanese
affiliates abroad: the share of emerging economies in services turnover abroad increased from 25% in 2000
to 34% in 2010. Likewise, WTO reports that in 2009, United States exports of commercial services to
India decreased by 4% while services supplied through commercial presence rose by 34%. Similarly, in
China services supplied by US majority-owned foreign affiliates grew by 25%, while exports of
commercial services grew by only 2%.
FIGURE 10.
AVERAGE ANNUAL GROWTH IN DOMESTIC SERVICES OUTPUT AND
SERVICES IMPORTS
Notes: The size of the bubbles is proportional to the level of imports. Unlabelled and unfilled bubbles are OECD member countries.
Source: OECD calculations based on World Input Output Database (WIOD)
A wide range of barriers to services trade
While impediments to merchandise trade can be (relatively) easily measured in terms of trade barriers
like tariffs and quotas, impediments to services trade are more complex and harder to measure. Tariffs are
generally smaller or non-existent for services trade, but the scope of potential barriers to trade in services is
broader than trade in goods. Services are traded in a variety of modes, output is much more heterogeneous,
and regulations covering both domestic and cross-country transactions are much more complex. That is
29
why explicit identification or quantification of barriers is notoriously difficult and analysis on this topic is
still in its infancy (see Box 5).17
Some of the horizontal policies that restrict services trade include restrictions on market entry (such as
equity limits, licensing requirements, or economic needs tests), restrictions to the movement of people,
heterogeneous services standards, and competition regulation. Barriers may be discriminatory against
foreign suppliers, but even when that is not the case, trade may be to a large extent restricted through
domestic regulation that prevents entry and competition. Much of this regulation is sector-specific, e.g. a
wide range of rules in telecommunication services concern access and interconnection, number portability,
local loop unbundling and infrastructure sharing which will directly affect the decision of foreign providers
to enter a market.
Regulation with bearing on services trade is present in all countries, and there does not seem to be a
clear North-South pattern in countries that are more open than others. Across sectors, professional and
transportation services seem to be among the most protected in both industrial and developing countries,
while retail, telecommunications and finance tend to be more open.
The impact of services trade barriers also varies according to the mode of supply; as trade in services
overall occurs increasingly through commercial presence, barriers to foreign investment are the category
that receives most attention. Some of the sectors that have grown exponentially the last years, like
education, or health services occur importantly through Mode 2, partly because of important barriers to
commercial presence. Countries could boost trade in services in these sectors by allowing transition to
Mode 3, e.g. by allowing the establishment of foreign medical providers, universities, training providers or
banks in their territory. In legal services, especially the restrictions to the movement of people are
damaging as Mode 4 accounts for large part of the exports of these services.
Governments are slowly opening services to international competition. Although most initiatives in
services sectors have been unilateral, multilateral negotiations at the WTO within the GATS structure are
also contributing to a reduction in discriminatory barriers against foreign producers. In addition, regional
trade agreements (RTAs) with provisions for trade in services have proliferated the last two decades. Most
agreements entered into by its member countries include provisions for services, dealing with a variety of
areas, such as investment, competition, intellectual property or government procurement. These
agreements usually go beyond GATS with additional specific commitments on market access and national
treatment, as well as complementary sets of disciplines in sectors such as telecommunications or financial
services (see Miroudot et al. 2010).
Lowering trade policy barriers in services reflects a more general change of government attitudes
towards more competition in services industries. Many market failures have been put forward in the past
for not liberalising services sectors: natural monopolies resulting from high fixed costs of entry, universal
provision, and quality assurance are only some of them. Monopolies and oligopolies have long dominated
network sectors with the government often controlling directly shares of the market. In addition, excessive
regulation in many countries still prevents entry and competitive conduct in many liberal professions,
health services, and education.
Reforms, such as the privatisation and restructuring of major state-owned service providers,
infrastructure sharing and opening of closed professions have been implemented effectively in many
countries; the policy objective being to foster the potential of services to generate value and employment
17
The Australian productivity Commission has pioneered studies on the quantification of barriers to services trade
(Kalirajan, 2000; Nguyen-Hong, 2000), with several international organisations taking initiatives in this direction
using similar methodologies, including the OECD (see Box 2) and the World Bank (Borchert et al., 2012).
30
by addressing their weaknesses. The benefits are already visible but stand to be even greater in the near
future. Recent OECD work has detected, for example, that a highly regulated country such as Spain would
eventually experience a 4% increase in aggregate productivity if it were to reduce anti-competition barriers
in the services sector to the lower level that prevails in Denmark (Andrews and Cingano, 2012).
31
BOX 5. THE OECD SERVICES TRADE RESTRICTIVENESS INDEX (STRI) - ENGINEERING
SERVICES
The STRI project was launched by the OECD Trade Committee in 2007 as a tool for quantifying barriers
to trade in services at the sectoral level. Seven pilot sectors were covered at the beginning (computer
services, construction, telecommunications, and professional services such as legal, accounting,
architecture and engineering services), and 11 more sectors were added (3 audiovisual services,
distribution, 2 financial services, courier and 4 transport services). The major outputs from the project
include a regulatory database, providing detailed information on current laws and regulations affecting
international trade in services, and trade restrictiveness indices which provide a snapshot of the trade
policy stance at a particular point in time. The sources of information for the database are laws and
regulation in each member country.
Five policy areas are covered by the index:

Restrictions on foreign ownership and other market entry conditions;

Restrictions to the movement of people;

Other discriminatory measures and international standards;

Barriers to competition and public ownership;

Regulatory Transparency and administrative requirement;
Professional services are considered a highly restrictive services sector, while also offering opportunities
for trade under multiple modes. It is therefore an interesting example to illustrate differences in regulations
and potential barriers in different countries. Figure 1 takes the example of Engineering Services and
presents STRI results broken down by category of restrictions (Geloso-Grosso and Lejarraga, 2012)
STRI – engineering services
Source: OECD Services Trade Restrictiveness Index database (2014)
32
(http://www.oecd.org/tad/services-trade/services-trade-restrictiveness-index.htm)
Clearly, regulations concerning the movement of people are contributing the most to the level of
restrictiveness in engineering services. The supply of engineering services relies heavily on the temporary
movement of suppliers aboard. The most prevalent quantitative pre-conditions for entry are labour market
tests, which are maintained by two-thirds of OECD countries. Many OECD countries also have licensing
3. Knowledge and innovation in services on the rise18
Innovation in services is broader than R&D
Services sectors have long been considered as less innovative as one traditionally thinks of innovation
in terms of R&D and technology. Data indeed show that the service sector accounts for a smaller share of
business R&D, notwithstanding the services share has increased during the past decade (Figure 11).
Likewise, services firms display overall lower R&D intensities compared to manufacturing firms and
almost half of firms who introduce new services on the market do not carry out any internal R&D activities
(Lopez-Bassols and Millot, 2013).
FIGURE 11.
SHARE OF SERVICES IN BUSINESS R&D, 2001 AND 2011
Source: OECD Science, Technology and Industry Scoreboard 2013.
R&D is however only one source of knowledge for innovation; recent OECD work has shown the
importance of investment in so-called knowledge-based capital (i.e. organisational capital, innovative
property and computerised information) for the innovation potential of firms and countries (OECD,
2013d). This is particularly true for services; the production and delivery of certain types of services are
heavily based on intangible assets and knowledge-based capital. Knowledge embodied in data, design,
brands, reputation, skills, know how, etc. are the common and core element of intangible assets and
services.
A much broader notion of innovation is thus warranted; services innovation embodies some
technological (mainly ICT-related) but especially non-technological aspects. As product innovation (i.e.
the introduction of a good that is new or significantly improved with respect to its characteristics or
intended use)19 is often associated with R&D, innovation strategies in services industries include more
18
This section is based on Lopez-Bassols and Millot (2013) ‘Measuring R&D and innovation in services’ and
Cervantes (2013) ‘Policy report on service R&D and innovation’.
19
The definition of innovation is according to the Oslo Manual (OECD, 2005).
33
often marketing and organisational innovation. Taking into account the fact that innovation in services
often and to a larger extent takes other forms than R&D, services firms are much more innovative than
traditionally thought. The shares of innovating firms are relatively similar across manufacturing and
services firms in most countries (Figure 12).
FIGURE 12.
INNOVATION IN MANUFACTURING AND SERVICES, 2008-2010
(As a percentage of all firms in the manufacturing and services sector respectively)
MANUFACTURING
SERVICES
Source: OECD Science, Technology and Industry Scoreboard 2013.
34
Services innovation is characterised by a large heterogeneity across industries and firms. Some
service industries are amongst the most innovative industries in OECD economies: innovation rates in
knowledge-intensive services are comparable – in some countries even higher – to those in high-tech
manufacturing sectors (Figure 13). High-tech manufacturing sectors show the highest rates of companies
introducing new goods (more than 40%, based on 15 EU countries); for comparison, 30% of the firms in
knowledge intensive services are found to introduce new services.
FIGURE 13.
SHARE OF FIRMS INTRODUCING PRODUCT, PROCESS, ORGANISATIONAL
OR MARKETING INNOVATION BY SECTOR CATEGORY, 2006-2008
Note: 1) Observations are weighted by firm size. 2) High tech manufacturing includes chemicals and pharmaceuticals, electrical and
electronic equipment, machinery and equipment and transport equipment including motor vehicles; knowledge intensive services
include water and air transport, publishing, telecommunications, finance and services, and other business services
Source: OECD calculations based on CIS 2008 micro-data (Eurostat), 2012 and national innovation surveys from Australia, Austria,
Belgium and Canada.
Innovation in services tends to be more ‘open’
Innovation is a complex process, in manufacturing as well as services, and often involves several
actors and linkages, hence the growing need for companies to collaborate in innovation (co-development
with other companies, procure services such as R&D and design, etc.) and use information from outside
the firm. Innovation in services is found to be somewhat more reliant on external inputs and/or developed
outside the firm or jointly with other firms or institutions compared to innovation in manufacturing. For
service innovation, more than 35% of innovating firms drew on some form external developments during
2008-2010, compared to less than 30% for goods innovation (Figure 14).
35
FIGURE 14.
EXTERNALLY DEVELOPED GOODS AND SERVICES INNOVATION, 2008-10
As a percentage of firms introducing each type of innovation
Note: no data for Australia available
Source: OECD Science, Technology and Industry Scoreboard 2013.
Firms use different approaches when implementing more open models of innovation; some firms codevelop their innovations with other partners while other firms adapt/imitate innovations which have been
developed elsewhere. Collaboration in innovation - one specific type of external engagement – is the most
important in knowledge-intensive industries; other service industries seem to choose relatively more for
other forms of interrelationships, such as imitation or other types of agreements within companies.
So-called market-oriented types of collaboration are found to be relatively more important in services
industries. Service firms tend to collaborate significantly more than manufacturing firms with suppliers,
clients or competitors, whereas the level of collaboration with universities, consultants or public research
institutes is similar in the two broad sectors (Figure 15).
36
FIGURE 15.
FIRMS CO-OPERATING FOR INNOVATION BY TYPE OF CO-OPERATION
PARTNER, 2006-2008
Proportion among “innovation active” firms
Notes: Observations weighted by firm size for EU-16 (CZE, DEU, ESP, EST, FIN, FRA, HUN, IRL, ITA, LUX, NLD, NOR, PRT, SVK,
SVN, SWE). The term “innovation active” is used here to refer to firms with product or process innovation, or ongoing/abandoned
activities for product or process innovation.
Source: OECD calculations based on CIS 2008 micro-data (Eurostat), 2012
Protection of intellectual property is crucial in models of open innovation, the more so in services
because of the intangible character of services. Trademarks are the predominant type of Intellectual
Property Rights (IPR) used by firms in service sectors while patents are only rarely used: innovations in
services industries are often not patentable because of their intangible or non-technological nature.
Services firms also tend to rely on copyrights, e.g. in software-related activities but only rarely use designs
(Figure 16). These traditional forms of IPR protection are however not always effective; trade secrets and
informal protection methods (e.g. confidentiality and non-competition clauses in employment contracts,
agreements on ownership and use in co-operation contacts) are found to complement, and in some case
substitute for, more traditional forms of intellectual protection (Cervantes, 2013).
Interestingly, there is some evidence suggesting that trademarks registered as relating to goods
actually describe ultimately a service. The protection granted by the trademark prevents other companies
from claiming to be able to provide an identical service as implied in the name of the final good
delivered20. Further on, the fact that trademarks are frequently registered both in goods and services classes
points to the growing complementarity between innovation in goods and services and that correspondingly
firms increasingly offer bundles of goods and services (see below).
20
For example, the Big Mac trademark which was initially registered in a class of goods (class 30, relating to food
products including sandwiches) stems from a service company delivering the good as a service.
37
FIGURE 16.
SHARE OF FIRMS USING VARIOUS INTELLECTUAL PROPERTY RIGHTS BY
SECTOR CATEGORY
Notes: 1) Observations weighted by firm size for EU-10 (CZE, ESP, EST, GRC, HUN, IRL, LUX, NOR, PRT, SVK). The shares
correspond respectively to firms that have applied for a patent, registered an industrial design, registered a trademark or claimed
copyright during the three years 2004 to 2006. 2) High tech manufacturing includes chemicals and pharmaceuticals, electrical and
electronic equipment, machinery and equipment and transport equipment including motor vehicles; knowledge intensive services
include water and air transport, publishing, telecommunications, finance and services, and other business services
Source: OECD calculations based on CIS 2006 micro-data (Eurostat), 2012
Innovation in services and public support
Public financial support for innovation, as reported by companies in innovation surveys, is generally
more important in manufacturing than in services (Figure 17). But in most countries the gap between
manufacturing and services in terms of the relative likelihood of receiving support has narrowed slightly
within the last decade. This might be related to the shift in countries’ policy strategies in recent years,
which increasingly support innovation in services.
A comparison of national policies in selected OECD countries and key non-members tends to reveal
four main approaches in service innovation policies (Cervantes, 2013): a normative approach whereby
innovation strategies mention services but where the focus is mainly on traditional manufacturing; the
awareness approach whereby service innovation is the subject of a specific policy; the embedded approach
whereby innovation policies aim to accommodate service innovation but have yet to do so, and lastly; a
targeted approach whereby policies to promote service innovation are adapted to the country’s specific
industrial structure and comparative advantage (e.g. ICTs, tourism, etc.).
Rather than creating new instruments, most OECD countries are in the process of changing the scope
of those already in place. For example, financial support in the form of tax incentives is increasingly being
expanded to include service innovation (Cervantes, 2013). France, Germany, Denmark and Finland are
examples of OECD countries that have targeted instruments in place to support service innovation. These
include programmes to engage users/employees in innovation, in new business models, or programmes to
promote innovation in public sector services. Australia, China, Poland, South Africa and the United
38
Kingdom are examples of countries whose policy instruments support innovation in the service sector
indirectly (e.g. voucher system, centers of excellence, clusters, knowledge transfer networks, etc.).
Policy instruments directly targeting service innovation are often found on the supply-side, while
novel instruments are mostly indirect and demand-oriented such as public procurement.
FIGURE 17.
FIRMS RECEIVING PUBLIC SUPPORT FOR INNOVATION, MANUFACTURING
AND SERVICES, 2008-10
As a percentage of product and/or process innovative firms in each sector
Source: OECD Science, Technology and Industry Scoreboard 2013.
4. Strong firm dynamics support employment growth in market services
The size and age characteristics of services firms
Services sectors have been characterised by strongly growing employment, whereas the number of
jobs have consistently fallen in manufacturing industries. These aggregate data hide large differences in
firm dynamics; for example, not all manufacturing firms have decreased their employment while likewise
not all service firms have continuously expanded. The OECD DYNEMP project studies the dynamics
among firms in structural firm characteristics (like size and age), entry and exit in direct relation to the
creation and destruction of employment across firms, industries and countries (see Box 6). The results
overall point to different firm and employment dynamics between services and manufacturing; current
work is underway to derive results for individual (services and manufacturing) industries21.
21
The analysis focuses on non-financial market services; the exact coverage of industries is from 50 to 74 in the
industrial classification system ISIC 3 excluding 65-67 (Financial services).
39
BOX 6. THE OECD DYNEMP PROJECT
The OECD project DynEmp utilises business level information on employment, entry and exit, firm age and sectoral
affiliation in 16 OECD countries and Brazil during the last decade, from 2001 to 2011 (Criscuolo et al, 2013). The data
underlying the analysis rely on official national sources such as business and tax registers. It is based on a
methodology called distributed microdata analysis (DMD), which is a harmonized collection of micro-aggregated data
by running the same computer code using each national firm-level data source (see e.g. Bartelsman et al., 2004).
The main advantage of this approach is that it allows access to the widest available coverage of businesses, and at the
same time resolves confidentiality issues. The routine only collects non-confidential, aggregate information at certain
aggregation levels (cells) defined by firm characteristics such as size, age, sector (manufacturing, business services
excluding financial services and construction), year (2001-2011) and firm status (entrant, exiting and continuing firms).
Currently, 17 countries (Austria, Belgium, Brazil, Canada, Finland, France, Hungary, Italy, Japan, Luxembourg,
Netherlands, Norway, New Zealand, Portugal, Spain, Sweden and United States) are included in the analysis, and the
number is expanding as more countries are joining the network.
This data collection method builds on earlier studies using a similar approach for analysing business dynamics across
countries and various firm groups (Bartelsman et al, 2004, 2005 and 2009; Haltiwanger et al, 2008; Anyadike-Danes et
al, 2013; and Bravo-Biosca et al, 2013). Substantial efforts were made at harmonizing the key concepts related to firm
dynamics. Nevertheless, the exact definitions of firm birth and death may still need to be further investigated and
refined; for example, data do not always allow for all countries to distinguish between newly- born firms from firms
resulting from merger and takeovers).
Bearing this potential caveat in mind, the precise role of various firm age groups should be interpreted with caution.
Accordingly, the main focus below is on highlighting broad qualitative patterns, robustly present in the majority of
countries, and not the exact differences across countries.
As already reported in previous work, services firms are on average smaller than manufacturing firms,
which is a direct illustration of the smaller optimal scale in services sectors (Figure 18). For example, 94%
of services firms in Italy have less than 10 employees, but also in the United States, which has the lowest
fraction of small firms, 75% of services firms operate in that size category. In contrast, the fraction of small
firms in manufacturing ranges from 57% (United States) to 78% (Italy and New Zealand).
In addition to being smaller, services firms are also younger: the percentage of services firms which
are at most 10 years old is 60%, whereas this is only 45% for manufacturing (Figure 19). Old firms (more
than 10 years old) tend to be larger both in services and manufacturing sectors and as such are more
important in terms of employment than in number of firms.
40
FIGURE 18.
SHARE OF FIRMS BY SIZE CLASS, BY COUNTRY
Services
Manufacturing
Note: The graphs show the share of firms by different size class in the total number of firms in each economy on average over the
available years. The period covered is 2001-2011 for Austria, Belgium, Finland, Hungary, the Netherlands, Norway, and the United
States; 2001-2010 for Brazil, Spain, Italy, Luxembourg and Sweden; 2001-2009 for Japan and New Zealand; 2001-2007 for France;
and 2006-2011 for Portugal. Owing to methodological differences, figures may deviate from officially published national statistics. For
Japan data are at the establishment level, for other countries at the firm level. Services refer to non-financial business services.
Source: Preliminary results from the OECD’s DynEmp project (Criscuolo et al. 2013)
41
FIGURE 19.
SHARE OF FIRMS AND EMPLOYMENT BY AGE CLASS, AVERAGE ACROSS
COUNTRIES
Services
Manufacturing
Note: The graph reports the share of firms and employment, respectively, by firms of different age classes in average across all
available years and countries. The period covered is 2001-2011 for Austria, Belgium, Finland, Hungary, the Netherlands, Norway, and
the United States; 2001-2010 for Brazil, Spain, Italy, Luxembourg and Sweden; 2001-2009 for Japan and New Zealand; 2001-2007
for France; and 2006-2011 for Portugal. Services exclude the financial business sector. Owing to methodological differences, figures
may deviate from officially published national statistics. For Japan data are at the establishment level, for other countries at the firm
level.
Source: Preliminary results from the OECD’s DynEmp project (Criscuolo et al. 2013)
Looking across different age classes of firms shows that services sectors are characterised by smaller
but more start-ups and firm births (i.e. firms less than 3 years old). Start-up sizes (i.e. the average size
within these groups) in services are substantially smaller than in manufacturing which is directly related to
differences in optimal firm size and barriers to entry between the two broad sectors. While smaller, firm
births and start-ups in services are more numerous pointing to important firm dynamics in services (Figure
20).
42
FIGURE 20.
SIZE AND SHARE OF START-UPS, BY COUNTRY
Note: The graph reports the average size of start-up firms (from 0 to 2 years old) over the available years. The period is: 2001-2011
(Austria, Belgium, Finland, Hungary, Netherlands, Norway, and United States); 2001-2010 (Brazil, Spain, Italy, Luxembourg and
Sweden); 2001-2009 (Japan and New Zealand); 2001-2007 (France); and 2006-2011 (Portugal). Services exclude the financial
business sector. Owing to methodological differences, figures may deviate from officially published national statistics. For Austria and
Japan data are at the establishment level, and at the firm level for other countries.
Source: Preliminary results from the OECD’s DynEmp project (Criscuolo et al. 2013)
Firm and employment dynamics
Looking at employment dynamics, a relatively uniform picture emerges in manufacturing industries
across countries: young firms (below 5 years of age) grow while older firms (above 5 years old) shrink in
employment (Figure 21). The job destruction by old firms is larger than the job creation by young firms,
resulting in a net reduction of total employment in manufacturing. The net job creation in services is
explained by higher growth rates of young businesses as well as positive employment growth by older
firms. Young and old firms are found thus to grow faster in services.
Within each of the categories of young and old firms, important differences exist between firms that
downsize (i.e. reducing the number of jobs) and those that expand (i.e. increasing the number of jobs); this
more detailed analysis however does not reveal major differences between services and manufacturing.
Young and small firms, in services as well as manufacturing, create disproportionately more jobs –
compared to their employment share – and this pattern is very stable across countries and over time (Figure
22). In contrast, old firms (small as well as large) contribute relatively more to job destruction while less
to job creation.
43
FIGURE 21.
NET EMPLOYMENT GROWTH RATES BY SURVIVING YOUNG AND OLD
FIRMS, BY COUNTRY
Note: Growth rates are calculated as post-entry net job creation by the group over employment in the group, on the surviving subset
of firms (i.e. not taking into account entry or exit). Young firms are 5 years old or less, old firms are at least 6 years old, averaged
across available years. Period covered is: 2001-2011 (Austria, Belgium, Finland, Hungary, Netherlands, Norway, and United States);
2001-2010 (Brazil, Spain, Italy, Luxembourg and Sweden); 2001-2009 (Japan and New Zealand); 2001-2007 (France); and 20062011 (Portugal). Owing to methodological differences, figures may deviate from official national statistics.
Source: Preliminary results from the OECD’s DynEmp project (Criscuolo et al. 2013)
44
FIGURE 22.
CONTRIBUTION TO AGGREGATE EMPLOYMENT, JOB CREATION AND JOB
DESTRUCTION BY FIRM AGE, SIZE, AND SECTOR, AVERAGE ACROSS COUNTRIES
Note: The figure reports the contribution to total employment, gross job creation and job destruction by firms in the indicated age-size
groups averaged across available years and countries. Period covered is: 2001-2011 (Austria, Belgium, Finland, Hungary,
Netherlands, Norway, and United States); 2001-2010 (Brazil, Spain, Italy, Luxembourg and Sweden); 2001-2009 (Japan and New
Zealand); 2001-2007 (France); and 2006-2011 (Portugal). Sectors considered are: manufacturing and non-financial business
services. Owing to methodological differences, figures may deviate from officially published national statistics. Data for Japan are at
the establishment level and at the firm level for other countries.
Source: Preliminary results from the OECD’s DynEmp project (Criscuolo et al. 2013)
Analysing the separate roles of the intensive margin (i.e. the growth of incumbent firms) and the
extensive margin (i.e. through entry and exit) in employment shows that a large fraction of job creation
comes from newly created firms (i.e. entrants) especially in services (Figure 23).22 At the same time, young
businesses leaving the industry (i.e. exit) prominently contribute to the job destruction in services – more
than in manufacturing.
Summarising, the results point to stronger firm dynamics in services firms: more churning is observed
particularly among the younger cohorts of services firms, illustrated by higher job creation and job
destruction, higher firm start-up rates and more exits. Those staying in the market tend to grow faster than
manufacturing firms. Given that services industries are characterised by a large presence of smaller and
younger firms, the group of younger firms drive to a large extent the net job creation in services. But young
22
Firms who enter, i.e. who appear for the first time in the business registers, may or may not indicate genuine births
of new businesses, in the traditional sense of being created by entrepreneurial managers and employees who did
not work together before. It may reflect spinoffs from a larger company, a creation of a new firm as part of an
enterprise group (e.g. a greenfield investment); the merger of more companies; or the re-birth of a company under
a different name. Similar issues apply for the definition of exit. Refining these definitions with the involvement of
national statistical agencies would be a potentially important step in future work.
45
firms are not only a source of employment growth, but also play an important role in experimenting with
new ideas thereby driving innovation and economic growth (OECD, 2013d). Countries differ significantly
with respect to the employment growth (net and gross) generated by business entry and by young start-ups
and the contraction or expansion of firms’ employment. These differences point to the significant role
played by framework conditions (ease of starting up a business, mergers and acquisition policies, policy
impediments to growth, bankruptcy laws, etc.), which may or may not allow successful businesses to grow
or failing businesses to exit. Future work in the DYNEMP project will analyse the impact framework
conditions have on firm dynamics and employment growth, thereby distinguishing between manufacturing
and services.
FIGURE 23.
CONTRIBUTIONS TO NET JOB CREATION BY ENTRY, EXIT AND INCUMBENT
GROWTH AND BY FIRM AGE, AS A PERCENTAGE OF AGGREGATE EMPLOYMENT, BY
COUNTRY
Note: Contributions are calculated as the net job creation by the group (e.g. young incumbents) over total sectoral level employment
averaged across all available years. Young firms are aged 5 years old or less, old firms are at least 6 years old. The period covered
is: 2001-2011 (Austria, Belgium, Finland, Hungary, Netherlands, Norway, and United States); 2001-2010 (Brazil, Spain, Italy,
Luxembourg and Sweden); 2001-2009 (Japan and New Zealand); 2001-2007 (France); and 2006-2011 (Portugal). Owing to
methodological differences, figures may deviate from officially published national statistics. Data for Japan are at the establishment
level and at the firm level for other countries.
Source: Preliminary results from the OECD’s DynEmp project (Criscuolo et al. 2013)
Focusing on the role of young and old services and manufacturing firms in the last decade and their
different responses during the recent financial crisis shows that employment in services stills grows faster
than in manufacturing but that post-crisis recovery has been slower. Services firms seem to have suffered
relatively more in the crisis as they are still not reaching the pre-crisis levels of job creation, mainly due to
the lack of young firms’ dynamism (Figure 24). This is alarming in the sense that the main sources of
employment creation – young and small services firms – face apparent difficulties in the post-crisis
economic environment.
46
FIGURE 24.
CONTRIBUTIONS TO NET JOB CREATION BY FIRM AGE
as % of aggregate employment, average across countries
Note: Contributions are calculated as the net job creation by the group over total employment in manufacturing. The period covered
is: 2001-2011 (Austria, Belgium, Finland, Hungary, Netherlands, Norway, and United States); 2001-2010 (Brazil, Spain, Italy,
Luxembourg and Sweden); 2001-2009 (Japan and New Zealand); 2001-2007 (France); and 2006-2011 (Portugal). Owing to
methodological differences, figures may deviate from officially published national statistics. Data for Japan are at the establishment
level and at the firm level for other countries.
Source: Preliminary results from the OECD’s DynEmp project (Criscuolo et al. 2013)
5. Growing and complex interactions between manufacturing and services
The blurring between manufacturing and services
While traditionally a clear distinction is made between the tangible goods producing manufacturing
sector at the one side and the intangible services sector at the other side – to describe for example the
structural shifts in employment, national economies and firms are increasingly structured around the close
interaction of ‘manufacturing’ and ‘services’ activities. Services are increasingly involved in the
production of intermediate inputs (Pilat and Wölfl, 2005); on average around 40% of gross output
produced by OECD services industries is used as intermediate inputs by other industries. Along the same
lines, many manufacturing firms have been transformed into services firms and conversely, many services
firms are becoming more like manufacturing firms as outputs are mass produced service products rather
than customised services experiences (Bryson, 2007).
The past decades have clearly witnessed a growing interdependence between services and
manufacturing industries as the share of services activities that is necessary for or complementary to
manufacturing production has increased. Figure 25 measures the extent to which services contribute inputs
to manufacturing production at any stage of the production process and shows that manufactured goods
increasingly incorporate inputs and value-added from services industries.23 In the majority of OECD
countries, about one-third of manufactured goods consisted of value-added created in services industries in
23
For example, a car manufacturer might subcontract specific services such as logistics to a specialised services
producer; in addition, the car is made up of many inputs that are produced in other manufacturing industries (such
as wheels, steel, rubber, etc.) which may also have bought services from a specialist service producer.
47
2009. The services content of final demand for manufactured goods has risen in almost all countries since
the mid-1990s.
FIGURE 25.
SERVICES VALUE-ADDED IN MANUFACTURED GOODS
as a percentage of total value-added of manufactured goods in final demand
Source: OECD/WTO Trade in Value-Added (TiVA) database.
Likewise, as already discussed above, manufacturing exports include more and more inputs from
service industries: between 30% and 40% of manufacturing exports is actually value-added that has been
created within (domestic and foreign) services industries (Figure 26). The services value-added content of
manufacturing exports has increased in almost all countries between 1995 and 2009; the largest valueadded contributions come from distribution (wholesale and retail) and business services and to a lesser
extent from financial services and transportation/telecommunication services.
Exports of services in engineering, design, etc. for example often follow from specific manufacturing
activities; hence the tradability of these services is very closely linked to manufacturing.
48
FIGURE 26.
SERVICES VALUE-ADDED IN MANUFACTURING EXPORTS, 2009
as a percentage of total gross manufacturing exports
Source: OECD/WTO Trade in Value-Added (TiVA) database.
These figures reflect in the first place the fact that manufacturing has undergone profound changes in
the organisation of production during the past decade(s). Production, investments and exports are
nowadays taking place within Global Value Chains (GVCs), with different production stages dispersed
geographically and organisationally. Within GVCs, production processes have become increasingly
fragmented and different activities (including services activities) have been outsourced to independent
suppliers and/or offshored to different locations. Technical progress, economies of scale, growing
specialisation, lower production costs, etc. have motivated companies to outsource and offshore businessrelated services such as R&D, financing, logistics (i.e. modern services) but also more traditional services
like cleaning. This outsourcing/offshoring of service activities has resulted in important efficiency and
productivity gains as well as lower input prices for companies (see Box 7).
It directly means that the growing shares of services for manufacturing is to some extent the result of
statistical factors24; the outsourcing of services functions to independent suppliers helps to correct for the
typical understatement of the role of services in firms and economies. Service activities performed within a
manufacturing firm were before automatically classified as part of that firm’s manufacturing output; as
these services are nowadays increasingly contracted out to specialised service providers (domestically or
internationally) within GVCs, these services activities will be now categorised as ‘services’ 25.
24
See also Pilat et al, 2006; Rowthorn and Ramaswamy, 1998; The Economist, 2011.
25
Bagwhati (1984) describes this as the ‘splintering of services from goods’ wen explaining the rising importance of
services in industry-of-origin shares (i.e. in production as opposed to final-demand shares, i.e. consumption).
49
Nevertheless, the results in Figure 25 and 26 still constitute a lower bound for the actual contribution of
services to manufacturing as certain services activities (like R&D) are often performed in-house26.
26
The results in Figure 25 and 26 are based on national/international Input-Output Tables, hence they only include
contracted and traded services.
50
BOX 7. ‘THE OFFSHORING OF SERVICES JOBS’
Services offshoring raised long-standing fears about the effects of trade on domestic labour markets;
Blinder (2006) referred to (services) offshoring as the next industrial revolution. The reason was that
services jobs that were generally considered to be unaffected by globalisation were increasingly reported to
be offshored like for example medium-skilled clerical and service employees.
The discussion on globalisation and employment in OECD countries in the past focused on the
deteriorating position of low-skilled workers in the labour market: the classical argument was that
increased specialisation has given rise to higher imports of low-skilled-intensive products from lower-wage
countries particularly in more traditional (often low-technology intensive) manufacturing industries,
resulting in decreasing demand for low-skilled workers. US employment clearly demonstrated this
polarisation as it shifted from low-skilled to high-skilled workers during the 1980s; the higher the skill
level, the faster the growth in employment.
During the 1990s, however, the share of middle-skilled workers declined, while the share of high-skilled
workers continued to rise sharply and that of low-skilled workers rose moderately. The share of mediumskilled workers continued to decline during the 2000s, this time mirrored by a sharp rise in the share of
low-skilled services workers while the share of high-skilled workers stayed relatively flat (Autor et al.,
2010). Evidence for other countries [e.g. Goos et al. (2009) for Europe] also pointed to this growing
polarisation, with employment shares of both high-skilled and low-skilled increasing at the expense of
medium-skilled jobs.
Middle-skilled workers often tend to do manual or cognitive tasks that lend themselves to automation or
codification (e.g. book-keeping, monitoring processes and processing information). Because these tasks
can be substituted by machines or offshored (as services), demand for middle-skilled workers declines as
do the returns to their skills. At the high-skills end, workers tend to perform cognitive non-routine tasks
that are complementary to information technology. Demand for high-skilled workers therefore often
increases in tandem with investment in information technology. At the low-skilled end, non-routine tasks
involve services activities such as operating vehicles and assisting and caring for others. These activities
have – thus far – been less affected by trade or technology, and employment has shifted into these
occupations (Lanz et al. 2012).
Estimates of the number of jobs that could be lost owing to (services) offshoring and international
production sharing received considerable attention; these estimates were calculated on the assumption that
jobs which could be automated (in the future) would in the end be offshored. But (service) jobs that can be
offshored in theory are however not always offshored in reality: OECD (2007) gives an overview of
different studies and shows the typically large discrepancies in estimates of ‘jobs potentially at risk being
offshored’, ‘jobs likely to be offshored’ and ‘jobs effectively offshored’. In fact, Lanz et al. (2012) show
that companies find it uneconomical to unbundle specific tasks because of large economies of scope and
synergies. Moreover, transaction and coordination costs (because of e.g. the importance of tacit
information, unforeseen events, and contractual problems) would significantly rise if these tasks would
actually be offshored.
More importantly, services offshoring just like economic globalisation in general, creates a broad range of
effects, positive as well as negative. But typically the51negative, visible, short-term effects
(e.g. employment losses) receive the most media attention and reach the public. Offshoring is often
perceived in the public debate as the exporting of jobs abroad and a pure loss to the country and its
workers. Longer-term indirect benefits are much more difficult to analyse as they are much harder to
calculate; but they are frequently permanent gains while short-term costs are often transitory or one-off in
But the trend to "servitisation" of the manufacturing industry27 is not only reflected in the growing and
complex interactions between manufacturing and services industries, but is also illustrated in the changing
characteristics of the in-house/intra-firm activities of manufacturing companies. For example, jobs in
manufacturing firms are no longer associated only with the pure production process (fabrication, assembly,
etc.); instead an increasing part of the employees in manufacturing are employed in occupations that can be
considered as services-related, such as management, business, finance and legal professionals28 (Figure
27).
FIGURE 27.
SERVICES-RELATED OCCUPATIONS IN MANUFACTURING, 2002 AND 2012
As a percentage of total employment in manufacturing
Note: 1) Services-related occupations correspond to ISCO-08 (2002: ISCO-88) major groups: 1) Legislators, senior officials and
managers; 2) Professionals; 3) Technicians and associate professionals; 4) Clerks and 5) Service workers and shop and market
sales workers. 2) No comparable data available for Australia
Source: OECD Science, Technology and Industry Scoreboard 2013.
The growing service character of manufacturing becomes also increasingly clear at the innovation
side demonstrating the growing complementarity between goods and services innovation (Lopez-Bassols
and Millot, 2013). Survey evidence shows that a considerable deal of service innovation takes place
outside the service sector: several manufacturing firms innovating in products –almost one out of three in
EU-15 countries– simultaneously introduces new goods and new services (Figure 28). In some cases
manufacturing firms even report introducing only new services which may partly be explained by the fact
that some enterprises are involved in both manufacturing and service activities, even though they are
classified in only one industry. There are reversely a number of services firms that have introduced new
27
Other terms used are servicification, servicisation (Kommerskollegium, 2012).
28
In spite of the significant outsourcing/offshoring of service activities (see above)
52
goods: Google in the markets for tablets, Amazon with its Kindle, etc., which confirms the blurring
between manufacturing and services.
53
FIGURE 28.
FIRMS INNOVATING IN GOODS AND SERVICES, MANUFACTURING AND
SERVICES, 2008-10
As a percentage of product innovative firms in each sector
Note: Data for Australia refer to financial year 2010/11.
Source: OECD Science, Technology and Industry Scoreboard 2013 and national sources for Australia.
54
Services as source of value and competitiveness in manufacturing GVCs
Within GVCs, services play an increasingly important role both in co-ordinating value chain activities and
adding value to manufactured products. First, logistics, communication services, business services etc.
permit the efficient functioning of GVCs as they allow to transfer goods, data, technology and (managerial)
know how across borders and to coordinate dispersed activities in a quick and smooth manner. Basically,
transportation and communications networks form the backbone of GVCs and the provision of services to
these networks directly benefit manufacturing activities. For example, implementing just-in-time
organisation of production in GVCs requires effective and reliable transport and logistics services, but also
technical testing, legal advice, ICT support and many other business services (Nordås et al., 2006).
Second, in addition to these embodied services, manufacturing companies increasingly use embedded
services to gain a competitive advantage. Services help not only to raise productivity and efficiency of
GVC activities, but also differentiate, customise and up-grade their products and develop closer and more
longstanding relationships with customers (Kommerskollegium, 2012). Manufacturing companies no
longer sell only goods but instead sell bundles including design, development, marketing, warranties and
after-sales care. Firms increasingly bundle products – goods and services – to create unique product
characteristics and differentiate themselves from competitors. A company like Rolls Royce for example
does not only sell cars but ‘solutions, outcomes or experiences’ to better meet the needs of customers and
to differentiate from competitors. Xerox has restructured itself to a ‘document solution’ company, offering
technology advanced printers systems but also services like document managing and consulting; in fact,
services represent around 40% of Xerox’s turnover and are expected to contribute to 50% in the next years
(Benedettini et al., 2010).
As GVCs increasingly allow for the unbundling of business functions and pure production activities
are increasingly located to emerging economies, manufacturers in OECD countries indeed rely more on
complementary non-production functions to create value. OECD manufacturing is nowadays much broader
than the pure production of goods and includes several service-related activities in upstream as well as
downstream stages. A large part of the future growth in manufacturing is expected to come from so-called
‘manu-services’ which involves combining advanced manufacturing with a range of different services
(Neely et al., 2012; Sissons, 2011).
With intangible assets transforming the determinants of competitive success in manufacturing, these
(modern) services are often developed in parallel and on the basis of different forms of knowledge-based
capital (OECD, 2013d). Manufacturers in high-cost countries use design, branding, etc. to develop
advanced and differentiated products for which consumers are willing to pay a price premium. The highest
level of value creation in a GVC is often found in certain upstream (concept development, R&D and
engineering services, etc.) and downstream (marketing, branding, services after sales, etc.) service
activities (e.g. the smile-curve in electronics – Gereffi, 2010). A growing number of manufactured
products owe a large part of their success to modern services attached to the product, like for example a
range of applications linked to Apple’s iPhone. In the automotive sector, the cost of developing new
vehicles is increasingly dominated by software services, while high-end vehicles rely on millions of lines
of computer code and advanced on-board processors (OECD, 2013c).
A number of studies have documented the importance of services for manufacturing competitiveness.
For example, services are found to represent a growing share of the sales of Swedish manufacturing
companies (Kommerskollegium, 2012) and service activities (developed in-house or bought in) are found
for example to promote the export activities of manufacturing companies in Sweden (Lodefalk 2012). A
Swedish machine tool manufacturer is reported to use 40 different services in its delivery chain and sell 15
different types of services to its customers (Rentzhog, 2010). Firm-level analysis for the United Kingdom
55
and Germany also found that services account for a significant share of manufacturers (export) revenue
(Breinlich and Criscuolo, 2011; Kelle and Kleinert, 2010).
By bringing policy variables into the analysis, Francois and Woerz (2008) showed that service sector
openness (trade and Foreign Direct Investment (FDI)) has boosted the competitiveness of manufacturing
industries with stronger services linkages across the OECD. Likewise, Arnold et al. (2011) showed that
services liberalisation has benefitted manufacturing firms in the Czech Republic; opening services sectors
to foreign providers is found to be a crucial channel through which services reform affects downstream
productivity in manufacturing. Nordås and Kim (2013) show the importance of service performance
(which itself is driven by policy measures such as barriers to (services) trade but also by investments in
infrastructure) for manufacturing competitiveness across countries and industries. Variables on
telecommunications density, interest spread between banks’ deposit and lending rates, transport costs, time
for exports and imports, etc. are found to have differential effects for manufacturing performance
dependent on the income of the country and the technological character of the industry.
Additional analysis on the OECD/WTO TiVA database also points to the importance of services for
manufacturing competitiveness, suggesting a positive relationship between countries’ export
competitiveness in manufacturing industries and the services value-added content of these industries’
exports (De Backer, 2013). In general, a higher share of (market) services inputs in manufacturing exports
tends to go together with a stronger position on international markets; this is the case for all manufacturing
industries grouped together as well as within individual manufacturing industries although for some
industries the relationship is rather weak. Further on, in some industries, by zooming in on the ‘richer’
countries in the TiVA dataset, the results tend to suggest that the positive link between export
competitiveness and services value-added content of manufacturing exports becomes somewhat stronger.
This is consistent with the patterns of specialisation in global manufacturing as developed economies are
more specialised in higher value-added service activities more upstream and downstream, while emerging
economies are more active in pure production/assembly activities. The results are also in line with Nordås
and Kim (2013) who found that the impact of services quality on export competitiveness differs across
countries and industries: services are found to matter more in low-technology industries in emerging
low-cost economies, while services have a larger role to play in developed economies especially in
medium- to high technology industries.
The rise of services GVCs
Services are not only used as inputs for manufactured goods in new business models but are also more
and more embodied in final services sales and exports since international fragmentation has not only taken
place in manufacturing industries but increasingly also in services. As services firms have redefined their
boundaries and focused on their core competencies, an increasing number of business services previously
supplied within companies have been outsourced and offshored to both developed and emerging
economies. Gereffi and Fernandez-Stark (2010) discussed in large detail the GVCs in business services by
explicitly distinguishing between horizontal activities - i.e. services that are needed by any type of
company like information technology services (e.g. software research and development, IT consulting),
knowledge process outsourcing services (e.g. market intelligence, legal services) and business process
outsourcing services (e.g. accounting services, human resource management, supply chain management) and vertical activities - i.e. services that are part of a specific value chain in the manufacturing sector
(e.g. clinical trials in the pharmaceuticals value chain) or in another services industry (e.g. private equity
research or risk management analysis in the banking and insurance industries).
By mapping GVCs across different industries (including services), De Backer and Miroudot (2013)
present a number of indicators on the participation and position of countries within GVCs. One indicator
measuring the participation of countries in GVCs shows what percentage of a country’s exports are part of
56
GVCs: either because of upstream links – that is looking back along the value chain and measuring foreign
inputs/value-added included in a country’s exports – or downstream links – i.e. measuring the domestic
inputs/value-added of the country contained in the exports of other countries by looking forward along the
value chain.
The results for the individual categories of market services – wholesale and retail, transport and
communications, financial intermediation, and business services, show an overall smaller GVC
participation of countries in services compared to manufacturing, reflecting to a large extent the smaller
size of services in countries’ total exports (Figure 29)29. The strong manufacturing (export) specialisation
indeed explains to a large extent the limited participation of some countries in services GVCs. A second
general observation coming out of the results is the relatively large forward character of countries’
participation in services GVCs which illustrates the large use of services inputs in other countries’
manufacturing and other services industries. The sourcing of foreign inputs – i.e. backward participation –
is on average much smaller in services industries.
FIGURE 29.
PARTICIPATION IN SERVICES GVCS
GVC participation: Wholesale & retail, hotels and restaurants
GVC participation: Transport, storage and communications
29
The indicator is expressed relative to countries’ total exports - instead of industry exports - in order to take into
account the importance of the industry in the total export composition of countries
57
GVC participation: Financial intermediation
GVC participation: Business services
Source: OECD/WTO Trade in Value-Added (TiVA) database.
Services GVCs are however different from manufacturing GVCs with value configuration dependent
on different types of innovation (see above) and structured along other business models. Stabel and
58
Fjeldstad (1998) for example argue that ‘value networks’ and ‘value shops’ instead of ‘value chains’ are
more appropriate to discuss value creation in services industries. The focus in value networks and shops is
less on sequentially transforming inputs into products but more on solving capabilities for customer’s
problems. Services firms typically do not consider themselves part of one GVC, but rather as a partner for
a whole range of firms across different GVCs.
The systemic importance of services – ‘A world without services’
In the past, especially manufacturing has been considered as a central actor in a national economic
system because of its linkages with other sectors. But the growing and complex interactions between
services and other sectors result in a rising systemic importance of services in OECD countries. The
importance of the services sector for national economies is thus no longer only determined by its large size
(in terms of value-added and employment), but increasingly also by its interdependencies with other
sectors. A hypothetical “thought” experiment allows to quantify the systemic importance of services by
analysing what a world without services would look like, in particular how much national output across
economies would decrease if services would be eliminated (see Box 8).
BOX 8. HYPOTHETICAL EXTRACTION
The importance of an industry or a set of industries has been a matter of interest for some time, particularly
in policy discussions on the need of support for specific industries. The technique of ‘hypothetical
extraction’ as developed by Paelinck et al. (1965) and Miller (1966) quantifies how much the output in an
economy would decrease if a particular industry was no (longer) present, i.e. when this industry is deleted
from the national economy system. The method uses Input-Output Tables by setting the row (forward
linkages) and/or column (backward linkages) describing the industry in question in the accounts to zero;
the difference before and after extraction indicates the importance of the extracted industry to the national
economy. Several papers have applied the technique to address a wide range of topics and refinements to
the methodology have been proposed (see for an overview Dietzenbacher and Lair, 2013).
Of course, the sometimes stringent (and often criticised) assumptions of Input-Output analysis like the lack
of supply-side constraints, fixed prices fixed ratios for intermediate inputs to production and outputs from
production, etc. (Gretton, 2013) also affect the outcomes of this technique. For example, the technique
does not allow the freed resources of services sectors to be used in other sectors; Input-Output analysis
does not take into account opportunity costs or benefits.
In the “thought” experiment developed below, the OECD Intercountry Input-Output model underlying the
TiVA database, has been used thereby allowing to take into account the cross-border effects of removing
one industry from the global economy. A first simulation removes the whole services sector in all
countries from the global economy; following simulations remove individual services sectors in the global
economy as well in individual countries. The effects are calculated for the total economy, but also for
specific sectors to demonstrate the different linkages between the services sectors and these industries.
Figure 30 presents the hypothetical decrease in national output of Australia, the OECD era and the
world in a global economy without any services. The results clearly reflect the growing interdependencies
between services and other parts of the economy; mining, utilities and manufacturing all witness a
59
substantial decrease in production if services are no longer available in the global economy. For example,
manufacturing output would decrease by one-third in a world without services. This is because of
backward linkages effects – i.e. the use of services inputs in the production of manufacturing, etc. – and
forward linkages effects – i.e. the demand from services for manufactured products. The decrease in
national output for the total economy is much larger as this decrease is the result of the indirect effects on
other sectors as well as the direct impact (i.e. the loss of the services output itself).
The systemic importance of services has risen over time, with percentage decreases in 2009 larger
than in 1995; except for agriculture, this observation is valid for basically all sectors and all countries. In
the case of Australia, services have become more important for mining and utilities but agriculture and
manufacturing show a smaller dependency on services. The results also illustrate how the commodity
boom benefitted the services sector in Australia especially through the larger demand for services inputs
(see also above).
FIGURE 30.
HYPOTHETICAL EXTRACTION: DELETING ALL SERVICES SECTORS ACROSS
THE WORLD, 2009
Decrease in output of agriculture, mining, manufacturing, utilities and total economy in Australia, OECD and world
Note: the decrease in total economy’s output includes direct and indirect effects
Source: OECD calculations based on the Trade in Value-Added (TiVA) Database
Interdependencies and linkages are different across individual services industries; hence the results of
the “thought” experiment differ from one services industry to another. Figure 31 shows the impact on
manufacturing output of when individual services sector on the world level are removed; for example the
results show the decrease when there would be no transport and storage services offered across the world.
Manufacturing output decreases because of forward linkages through the purchases of manufactured
products for example in hotels and restaurants, non-market services, etc.; for other services categories e.g.
business services, backward linkages effects are relatively more important when the supply of services
inputs would stop. The results for agriculture, mining and utilities are presented in Annex 2.
60
FIGURE 31.
HYPOTHETICAL EXTRACTION: DELETING INDIVIDUAL SERVICES SECTORS
ACROSS THE WORLD, 2009
Decrease in output of manufacturing in Australia, OECD and world
Note: the decrease in total economy’s output includes direct and indirect effects
Source: OECD calculations based on the Trade in Value-Added (TiVA) Database
A last simulation analyses the importance of individual services for the national economy by
removing individual services sectors in the domestic economy only. Figure 32 presents the effects on the
Australian economy when removing the different services sectors in Australia. The results are of course the
largest for services and total economy since they include also the direct effect of the non-existence of a
services industry; these direct effects in terms of output are significantly larger than the indirect effects.
61
FIGURE 32.
HYPOTHETICAL EXTRACTION: DELETING INDIVIDUAL SERVICES SECTORS
OF AUSTRALIA, 2009
Decrease in output of agriculture, mining, manufacturing, services (incl. utilities) and total economy in
Australia
Note: the decrease in total economy’s output includes direct and indirect effects
Source: OECD calculations based on the Trade in Value-Added (TiVA) Database
PART 2: AUSTRALIAN SERVICES IN INTERNATIONAL PERSPECTIVE
1. A picture of the Australian services sector
Similar to the world’s most industrialised countries, services industries roughly account for about
three quarters of total employment and value-added in Australia, clearly illustrating the tertiarisation of the
Australian economy (Figure 33). Compared to the G7 countries (the United States, Japan, France,
Germany, Italy, the United Kingdom and Canada), the value-added share of Australian services is slightly
lower than its employment share which suggests that the labour productivity in Australian services is
slightly lower than in these other countries. The overall importance of services for the Australian economy
is also illustrated by other indicators: 62% of total sales and 75% of gross profits generated originated in
services activities.
62
The share of services in total Australian exports fluctuates around 20-30% which overall reflects the
lower tradability of services; however as indicated in Part 1, gross exports typically underestimate services
exports because manufacturing exports include to a large extent services value-added. The drop in the
services share of Australian exports in recent years is somewhat more evident than in G7 countries and
most likely reflects the exponential rise of mining exports from Australia (through a volume and price
effect) to Asian countries.
FIGURE 33.
SERVICES SHARE OF EMPLOYMENT, VALUE-ADDED AND EXPORTS (19952010)
Australia
G7
Source: OECD, STAN and TiVA databases
Looking at individual services industries, non-market services (community, social and personal
services) and real estate, renting and business services dominate the services sector in Australia, with
finance and insurance and wholesale and retail trade following in relative weight. These four industries
make up the largest part of value-added that is created in services and by extension in the whole economy.
This is also the case in other countries with a similar cultural and industrial background30 as Australia
(Figure 34)31; minor differences illustrate key idiosyncratic characteristics. For example, the relative
weight of transport and storage is larger in Australia which is likely to reflect distances within the country
as well as to the rest of the world. Financial and insurance services in Australia are significantly larger than
information and communication services, reflecting the high productivity and growth in the sector (see
below).
The industry composition changes in when looking at employment (Figure 35). Non-market services
(community, social and personal services) accounts for almost 40% of services employment in Australia;
also wholesale and retail trade and accommodation show a higher share in employment than in valueadded.
30
The United Kingdom, the United States and Canada are all English-speaking, services oriented (the UK more than
the others), with a non-negligible weight of manufacturing, and, in the case of Canada, a large mining sector.
31
Although it should be taken into account that these rather aggregate sectors might hide underlying diverging
patterns across countries. Data availability does not allow a comparison on a more disaggregated level.
63
FIGURE 34. INDUSTRY COMPOSITION OF THE SERVICES SECTOR IN TERMS OF VALUEADDED, AUSTRALIA, CANADA, THE UNITED KINGDOM AND THE UNITED STATES, 2011
OR LATEST
Note: Data correspond to the latest available year: 2011 for the United States, 2010 for Australia and the United Kingdom and 2008
for Canada.
Source: OECD Structural Analysis (STAN) Database
64
FIGURE 35.
INDUSTRY COMPOSITION IN TERMS OF EMPLOYMENT, AUSTRALIA, 2009
Total economy
Services sector
Source: OECD Structural Analysis (STAN) Database
Australia’s services sectors have seen strong growth over the past two decades with professional,
scientific and technical services having recorded the highest average annual growth over the 20 years
followed by financial and insurance services (Austrade, 2014). As discussed in Part 1, demand as well as
supply factors are an important reason behind this strong growth. In addition, the recent resources boom
seems to have positively impacted the growth of services in Australia.
Indeed, services have grown more strongly in Australia compared to other countries such as the
United States and the United Kingdom. Also other resource-rich countries like Canada, New Zealand and
Norway show a stronger expansion of the services sector although the evidence for Norway is less clear
(Francis, 2008).
The services sector in Australia has indirectly benefitted from the expansion of the resourceproducing sector; first, because of the strong linkages between the mining and services sector. Mining
activities in Australia use a high services input relative to the rest of the OECD (see Box 9; see also Part 1);
hence the growing output and investments in the Australian mining sector led to an increased sourcing of
intermediate services.
65
BOX 9. SERVICES INPUT TO MINING PRODUCTION AND EXPORTS
Similar to manufacturing, the mining sector sources important inputs from services industries. Distribution
and transport services for example are essential in order to establish linkages with the final consumer
(predominantly businesses in the case of mining); financial services are necessary because of the large
fixed (often up-front) costs; and business services are critical in ensuring efficiency of production. This is
reflected in the large services value-added of natural resources rich countries, including Australia.
Nevertheless, the mix of services input in mining activities is much more variable across countries than
expected by the relative homogeneity of production process in the sector. The figure below illustrates the
services content of mining by source industry for the top exporting countries. The services content ranges
from 5% in the case of Indonesia to nearly 30% in the case of Brazil.
Services content of value-added in mining and quarrying, 2009
Source: OECD-WTO Trade in Value-Added (TiVA) database, April 2013
Transport is essential to countries such as South Africa, Brazil or Chile that are far from large
manufacturing centres. Interestingly, Australia’s use of transport services seems to be more limited, at least
transport services contracted from independent suppliers (in-house transport services are not included in
the results). Moreover, Australia, similarly to other OECD countries such as the US, the UK, Chile and the
Netherlands, uses a disproportionally large share of business services in mining, ensuring the follow up of
the products to international markets and manufacturers. Overall, Australia relies heavily on services inputs
for its mining sector and hence services stand to gain significantly from the business inputs directly
associated with mining activities.
Second, the growth in income accompanying the commodity-price boom has triggered an economywide adjustment process with a reallocation of productive resources across sectors; and services have been
at the receiving end in this process. The rise in commodity prices on international markets has resulted in a
strong improvement of the terms-of-trade and appreciation of the exchange rate in countries like Australia
(Francis, 2008). This improved terms-of-trade has raised the real income, of which part is spent on
66
domestically produced, not readily tradable products (like e.g. construction and services) causing in turn
the prices of these products to rise (i.e. price effect). At the same time, the appreciation of the real
exchange rate has made imports of traded products cheaper (in domestic currency terms) and reduced the
firm profitability in internationally open industries like manufacturing. Accordingly, resources typically
tend to flow out of internationally open – and less profitable - sectors like manufacturing into non-traded
sectors like construction, utilities and services; value-added and employment growth figures across broad
sectors in resource-rich countries lend support for this process, resulting in a stronger expansion of the
services (and construction) sector compared to non-resource rich countries (Figure 36).
As was argued in OECD (2012a), the growing demand for commodities in international markets has
indeed accelerated the process of structural change in the Australian economy but it would be wrong to
consider the natural resources boom as the only or main reason for the deindustrialisation in Australia.
Likewise, the expansion of Australian services is not only due to the positive effects of the natural
resources boom; structural change is a broader process going beyond temporal booms in mining and oil
industries, even in countries richly endowed with natural resources (see also Part 1). Further on, the fact
that certain services categories have become increasingly internationally tradable also means that these
services are negatively affected by a strong national currency; there are some indications that some
services exports from Australia have suffered in most recent years from the strong Australian dollar (see
below).
FIGURE 36.
VALUE-ADDED AND EMPLOYMENT GROWTH, MANUFACTURING, MINING
AND SERVICES, AUSTRALIA, CANADA, NORWAY, UNITED KINGDOM AND UNITED
STATES, 2000-2011
Value-added (current prices)
67
Employment
Note: value-added: 2000-2010 for Australia and the United Kingdom; 2000-2008 for Canada: Employment: 2000-2009 for Australia
and Canada.
Source: OECD Structural Analysis (STAN) database
2. Drivers of services performance
Productivity
Australia’s productivity growth (multifactor as well as labour productivity) has slowed markedly
since the end of the 1990s and has fallen below its long-run average. Several reasons have been put
forward including more temporary factors: the effect of drought on agriculture output, the effect of the
dramatic increase in commodity prices on mining inputs and outputs (e.g. more extraction of lower quality
deposits), the slowdown in productivity-enhancing reforms, rising profitability allowing less-efficient firms
to remain in business (Productivity Commission, 2010; Dolman, 2009; Eslake, 2011). Part of the
productivity slump can be related to the current mining boom induced structural adjustment of the
economy as Australia’s productivity performance is broadly in line with other resource-rich countries like
Canada and Norway.
The slowdown has affected services sectors along with the rest of the Australian economy;
productivity has deteriorated from strongly positive in the mid-1990s to close to zero by the mid-2000s in a
number of services sectors (Figure 37). Financial services were a clear exception as its productivity has
increased substantially over that period. Nevertheless, the estimates suggest that services sectors performed
better than the other sectors in the Australian economy: mining, utilities and manufacturing recorded large
negative growth of (multi-factor) productivity in the mid-2000s.
Productivity growth in Australian market services has further decreased during the most recent period
(2007-2012). After the 2008 financial crisis, labour productivity growth has significantly fallen in most
OECD countries and this decline is broadly spread across sectors. The growth of value-added per hour
worked in the period 2007-2012 is a fraction of the productivity growth between 2001 and 2007 in market
services, with even negative figures in some countries like Hungary, Luxemburg and Estonia (Figure 38).
A positive growth in services productivity is observed for Australia with trade, hotels and transport
showing the largest contribution to services productivity growth (see also Box 10).
68
In discussing the productivity challenge of the Australian economy, McKinsey and Company (2012)
argued that productivity levels across a broad range of services industries still fall behind productivity in
US service industries. This productivity gap shows that there is room for further gains.
FIGURE 37.
MULTI-FACTOR PRODUCTIVITY GROWTH BY INDUSTRY, AUSTRALIA, 19942008
Annual average growth in log changes
Note: Industries: AGC: agriculture; MNG: mining; MNF: manufacturing; UTI: utilities; CON: construction; WHL: wholesale trade RTD:
retail trade; TRM: accommodation & food services; TSP: transport; INFO: information and technology; FINI: finance and insurance;
ART: art & recreational services. Only complete productivity cycles are shown.
Source: OECD (2012b) Economic Surveys: Australia 2012; using ABS, Cat. Nos. 5204.0 and 5206.0.55.002 and unpublished ABS
data.
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FIGURE 38. COMPOSITION OF LABOUR PRODUCTIVITY GROWTH IN MARKET
SERVICES, 2001-2012PERCENTAGE CHANGE CONTRIBUTION TO ANNUAL CHANGE IN
VALUE-ADDED PER HOUR WORKED
Source: OECD Productivity Compendium 2013
70
BOX 10. MEASURING PRODUCTIVITY IN SERVICES
Measuring output and productivity growth in services sectors is not straightforward. What exactly does a
lawyer or economist produce? How can the changing pricing schemes of telecommunications providers be
compared over time? And how should one measure the ‘quantity’ of health services provided by hospitals?
How to accurately measure nominal output and value-added for the financial services sector, as some
financial intermediation services, such as implicit banking charges, are indirectly measured. These and
similar questions arise when statisticians attempt to measure the output of service industries.
The comparability of productivity growth across industries and countries is significantly affected by
problems in measuring real value-added. Generally, measuring volumes in the National Accounts requires
current price values of flows of goods and services that can be divided into volume and price components.
Typically, this is more difficult for services than for goods. Characteristics of goods can normally be
identified and changes in quantities and qualities are, in principle, measurable. However for services, even
quantitative changes are often hard to measure, let alone quality change. Despite substantial progress made
over the past ten years in compiling service producer price indices (SPPIs) the methods used to compute
real value-added still vary across OECD countries. In many countries estimates of real value-added in
some industries are based on a sum of costs approach, where compensation of employees is deflated using
a priori assumptions on labour productivity growth. For example, most countries assume no change in
labour productivity for public administration activities, which is why the OECD excludes this sector in its
productivity estimates. Also excluded are the real estate services which mainly reflect the imputation made
for the dwelling services provided and consumed by home-owners.
The quality of productivity estimates also depends on the availability and accuracy of data on labour input.
Certain services sectors are characterised by a high degree of part-time work and self-employment, which
can directly affect the quality of estimates of actual hours worked.
In general, international comparisons of productivity have to be interpreted with care as they might be
subject to differences in scope and statistical methods across countries, cyclical movement and noise in the
data, as well as unmeasured changes in volume, quantity and quality of outputs and inputs. Growth
comparisons are on average ‘better’ than level comparisons, if only because of the adjustment of price
differences across countries.
Source: OECD Productivity Compendium 2013
Innovation and knowledge
Innovation in services is complex and multi-dimensional and differs from the much better documented
innovation process in manufacturing. The 2008 Cutler Review of the National Innovation System in
Australia concluded that innovation in services tends:

to take place specifically at the point of interaction between services provider and the client;
71

to be driven by client relations more than is the case for innovation in manufacturing; service
companies must maintain a flexible approach to innovation, constantly changing to solve client
problems and meet new needs;

to be people-driven as well as laboratory-driven, i.e. to break the bounds of traditional hierarchy by
requiring integrated input from all kinds of operational, organisational, technical and managerial
staff as well as researchers;

not to offer necessary economies of scale, as in manufacturing;

to involve a high level of interaction and interdependence between knowledge providers (such as
research organisations) and knowledge users (such as service firms) – to the extent that the term
co-innovation has relevance;

to be focused not only on new suites of services but also on new modal delivery methods for those
services and on new business models to reach new markets;

not to take place as a specialised and separately accounted activity located in a separately
identified part of a firm but to be inextricably linked with everyday creativity and design;

to show evidence of a strong responsiveness to both technological and non-technological inputs,
including when provided jointly;

to involve the social as well as the natural sciences;

to involve the creative arts and humanities;

to suffer from inadequate formal or informal access to collaboration opportunities between services
providers and the education and R&D community.
Some of these characteristics have been documented in Part 1 through the new statistics and indicators that
have been developed to show the growing importance of innovation in services. As was demonstrated
above (see Figure 12), the average innovation rate32 in Australian services is quite similar to these in other
OECD countries and is driven to a large extent by ‘softer’ types of marketing and organisational
innovation. Indeed, innovation is broader than only formal R&D particularly in Australian services; less
than one-fifth of the country’s service providers that innovate are undertaking R&D (Figure 39). This
share is significantly lower than in other OECD countries, stressing the need to consider broader forms of
innovation activities beyond R&D when targeting service innovation. Consequently, support for services
innovation through traditional R&D subsidies or tax credits risks to be less effective in Australia compared
to other countries.
32
Defined as the number of innovating firms as a share of the total number of firms.
72
FIGURE 39.
R&D-ACTIVE FIRMS, MANUFACTURING AND SERVICES, 2008-10
As a percentage of product and/or process innovative firms in each sector
Source: OECD Science, Technology and Industry Scoreboard 2013
In general, government support for services innovation in Australia is low compared to other OECD
countries (see also Figure 17). The number of firms receiving public support for innovation in Australia is
consistently lower in all industry categories – manufacturing as well as services – relative to other
countries (Figure 40). Public support is typically more important in manufacturing than in service sectors;
the share of firms receiving public support is highest in high-tech manufacturing sectors, followed by other
manufacturing and/or knowledge-intensive services. In a number of countries like Germany, Belgium,
Spain, Portugal, France and Hungary, knowledge-intensive services receive more frequently government
support than firms in medium- and low-tech manufacturing. There is much less differentiation in
government support for innovation in Australia with the shares of firms at the receiving end for public
support relatively similar across high tech manufacturing, other manufacturing and knowledge-intensive
services. The incidence of government support is equal in high-tech and other manufacturing and slightly
higher than in knowledge intensive services.
73
FIGURE 40.
SHARE OF FIRMS RECEIVING PUBLIC FINANCIAL SUPPORT FOR
INNOVATION ACTIVITIES, 2006-2008
As percentage of total number of firms
Notes: 1) Observations weighted by firm size. Public financial support corresponds to support from local or regional
authorities, central government or the European Union. This variable is by construction equal to zero for firms that
are not inno-active, i.e. firms without product or process innovation, neither actual nor ongoing or abandoned in the
CIS framework. 2) High tech manufacturing includes chemicals and pharmaceuticals, electrical and electronic
equipment, machinery and equipment and transport equipment including motor vehicles; knowledge intensive
services include water and air transport, publishing, telecommunications, finance and services, and other business
services
Source: OECD calculations based on CIS 2008 microdata (Eurostat), 2012 and national innovation surveys from
Australia, Austria, Belgium and Japan.
Knowledge intensive market services are traditionally considered as significant users of high
technology (e.g. ICT capital) and/or have a relatively skilled workforce able to meet the demands of
modern, highly competitive, business environments. About 14% of services employment in Australia is
found in knowledge-intensive services which is slightly higher than the OECD average (Figure 41). But
innovation rates in knowledge-intensive services in Australia are smaller than corresponding rates in most
other OECD countries (Figure 13). Innovation rates in knowledge-intensive service are not much different
from these in other services in Australia, but also not that different from innovation rates in manufacturing
(high-tech as well as other manufacturing). In other countries, a ranking of industry groupings emerge
with high-tech manufacturing coming out as the most innovative, followed by knowledge-intensive
services, other manufacturing and other services (Figure 13). It is not immediately clear what causes this
lower innovation in Australian knowledge services as for example the industry composition within these
services is largely similar between Australia and other OECD countries33.
33
As was discussed in OECD (2012a), the smaller differences between high tech and other manufacturing could be
explained by the (very) strong position of Australia in medium- and low tech industries and its rather weak
position in high-tech manufacturing.
74
FIGURE 41.
EMPLOYMENT IN KNOWLEDGE-INTENSIVE MARKET SERVICES, 2000 AND
2011
As a percentage of total employment
Source: OECD Science, Technology and Industry Scoreboard 2013.
Human capital
The performance of firms and their innovation ability depends to a large extent on the skills of the
workforce. This is valid for manufacturing (OECD, 2012a) but increasingly also for services; some
researchers have argued that services need especially softer innovation capabilities (Thether, 2005). The
growing importance of human capital and skills in services seems to be at odds with the traditional view
that services offer only/mainly low-skilled and low-paid jobs.
While employment in a number of services sectors is concentrated at the low-end spectrum of the
skills distribution (Australian Productivity Commission, 2002), the services sector in Australia also
provides most of the high-skilled jobs (graduate diploma or above). Education and training, but also
professional, scientific and technical services, health care and social assistance and public administration
employ large numbers of highly skilled people (Table 2). The importance of services sectors for highlyskilled jobs is not only due to the large size of these sectors in the Australian economy; the average skillcontent of knowledge-intensive market services (information and communication, professional services
and finance and insurance) is also significantly higher than in manufacturing as well as mining
Differences in human capital across industries are also reflected in average wages. Mining is by far
the industry with the highest average wage in Australia34 (almost double of the average wage in the second
highest ranked industry ‘utilities’), but again market services like telecommunications, finance and
insurance and business services show higher average wages compared to manufacturing. This is an
observation that also applies for other countries like the United States, Canada, the United Kingdom and
34
There is evidence to suggest that wages in mining are influenced by factors not related to skills, in particular
geography (” Given the remote areas in which many mines are located, mining wage levels are typically higher
than in other sectors in order to attract labour towards the industry” (Reserve Bank of Australia, 2011).
75
New Zealand (see Annex 5): the average wage in the above mentioned market services is higher than the
average wage in manufacturing, while wholesale, retail and accommodation provide significantly lower
wages.
TABLE 2. SKILL CONTENT AND AVERAGE WAGE, AUSTRALIA
Industry
Agriculture, forestry and fishing
Mining
Manufacturing
Electricity, gas, water and waste services
Construction
Wholesale trade
Retail trade
Accommodation and food services
Transport, postal and warehousing
Information media and telecommunications
Financial and insurance services
Rental, hiring and real estate services
Professional, scientific and technical services
Administrative and support services
Public administration and safety
Education and training
Health care and social assistance
Arts and recreation services
Other services
Total
Graduate plus
Average weekly
Absolute number
graduate diploma or cash earnings
of graduate
above in industry
(AUD) in
diploma or above
workforce (%)
industry
6 100
2.2
..
12 800
8.3
2 490.9
41 800
4.3
1 238.8
13 000
9.2
1 746.4
20 400
2.2
1 462.7
23 000
5.6
1 268.4
27 100
2.6
663.8
6 000
1.0
542.9
15 900
3.3
1 354.0
28 600
12.7
1 506.7
53 500
13.4
1 446.1
6 200
3.4
1 035.0
127 000
16.7
1 458.0
11 900
3.2
938.3
103 500
15.3
1 383.9
288 800
35.8
1 107.9
150 000
13.0
1 047.2
17 700
10.1
823.9
14 800
3.6
951.4
969 200
9.5
1 140.3
Source: ABS Cat. No. 6278.0, Education and training experience, 2009; ABS Cat. No. 6302, Average Weekly Earnings, Australia,
May 2013.
Internationally comparable data on human capital in services are not readily available for Australia.
Figure 42 presents the importance of human resources in science and technology (HRST) 35 in market
services and manufacturing across countries; professionals and technicians play a key role in innovation.
In general, HRST is somewhat more prevalent in market services than in manufacturing, although in
countries like Germany and France manufacturing employs relatively more professionals and technicians.
The same estimates on HRST occupations are not available for Australia as the national data in Australia
do not allow for the distinction between technicians and trade workers. Consequently, the results for
Australia included in the graph at the far right overestimate the actual importance of HRST. The results
also underline the importance of services for HRST occupations, in line with other countries.
35
Human resources in science and technology (HRST) are defined according to the Canberra Manual (OECD and
Eurostat, 1995) as persons having graduated at the tertiary level of education or employed in a science and
technology occupation for which a high qualification is normally required and the innovation potential is high.
HRST occupations include professionals, technicians and associate professionals (see OECD Science, Technology
and Innovation Scoreboard, 2013).
76
FIGURE 42.
PROFESSIONALS AND TECHNICIANS IN BUSINESS SECTOR SERVICES AND
MANUFACTURING, 2012
As a percentage of total employment in each industry group
Note: Data for Australia include professionals, technicians and trade workers, hence should not be compared at face value with HRST
personnel in other countries.
Source: OECD Science, Technology and Industry Scoreboard 2013.
The recent published PIAAC (Programme for the International Assessment of Adult Competencies)36
results by the OECD provide some insights in the type and level of skills used in Australian services. The
Survey of Adult Skills (PIAAC) includes detailed questions about the frequency with which respondents
perform specific tasks in their jobs. Based on this information, the survey measures the use of a wide range
of skills, including both information-processing skills (reading at work, writing at work, numeracy at work,
ICT at work and problem solving) and generic skills (task discretion, learning at work, influencing skills,
co-operative skills, self-organising skills, dexterity and physical skills) across occupations and industries.
The results presented in Figure 43 show the (mean) use of these different skills across Australian
industries, clearly demonstrating the importance of highly-skilled workers in services (OECD, 2013e).
Information-processing skills for example are most frequently used in the finance and insurance and
information and communication sectors. Also generic skills are heavily used in several services industries,
on average more than for example in manufacturing and mining. At the same time, the results underline
the heterogeneity of services, also in skills.
36
The PIAAC survey assesses the proficiency of adults from age 16 onwards in literacy, numeracy and problemsolving in technology environments. These skills are “key-information-processing competencies” that are
relevant to adults in many social contexts and work situations, and necessary for fully integrating and participating
in the labour market, education and training, and social ad civic life. Around 166,000 adults aged 16-65 were
surveyed in 24 countries. The survey includes a wealth of information; the first results are presented in the OECD
Skills Outlook 2013.
77
FIGURE 43.
SKILLS USE BY INDUSTRY, AUSTRALIA,
Information-processing skills
78
General skills
Note: see Annex 6 for a definition of the different skills and the meaning of the use-levels
Source: OECD Skills Outlook 2013
International orientation through trade and investment
Services companies operate in an increasingly international environment. In a number of services
sectors (e.g. modern services and knowledge intensive services) imports from abroad and the entry of
foreign MNEs has significantly increased competition. At the same time, domestic services companies are
trying to grasp new opportunities on foreign markets. As such, internationalisation has become an
important driver of firm performance in services industries, although not to the same extent as in
79
manufacturing; scale economies for example are overall less important in services weakening the need to
operate on an international scale.
This comes clear in data of the Australian Bureau of Statistics (2013) showing that there were 43,080
exporters of merchandise goods (representing AUD 264 billion of exports) and 2,937 exporters of services
(representing AUD 51 billion) in 2011-2012. Many firms in service industries in Australia are however
categorised as goods exporters37; about one third of goods exporters are actually from service industries
like transport, finance and services, business services and retail trade38. Further on, these statistics do not
include the provision of services abroad through foreign affiliates and investment abroad. Commercial
presence (Mode 3) is estimated to account for 65% of all Australian services provided internationally (see
below).
Additional, internationally comparable, evidence on the international orientation of services industries
through trade can be obtained from the OECD TiVA database, as it allows to calculate the import
penetration (i.e. the proportion of the domestic market served by imports) and export ratios (i.e. the part of
services production that is exported) in services industries across countries39. The results in Figure 44
clearly show the rising import penetration and export ratio’s in services between 2000 and 2009 due,
among other reasons, to the growing internationally tradability of services. Not surprisingly both the
import penetration and export ratio in services are much lower than comparable ratios for manufacturing
(see OECD, 2012a).
Australia shows an overall smaller export ratio than other countries, which may suggest that at the one
side also services in Australia suffer from its remoteness from world markets. As was already noted for
Australian manufacturing (OECD, 2012a), large economic distances result in high trade and transport costs
which hamper the global integration of Australia. At the other side, it has been argued however that for
services the tyranny of distance might be of a lesser problem as some services (e.g. weightless services) are
largely provided over ICT networks. The new OECD evidence on GVC participation seems to support this
since it shows a relatively higher GVC participation for Australia in services compared to manufacturing
GVCs. Australia’s GVC participation is close to or above the OECD average particularly in business
services, finance and insurance, and telecommunications (see Figure 29).
Further on, Australia can expect to benefit from the emergence of large (consumer) markets in Asia
and its overall economic distance will decrease40. As the global economic centre is shifting to the East, the
distance of Australia to these new world markets will still be significant but smaller than to markets in
Europe and the United States. While in the 1950s about 15% of world GDP was located within 10,000
kilometres of Australia, in 2010 about one-third of world GDP fell within the 10,000 kilometres m range.
And if emerging Asia keeps growing, that figure could be almost as high as two-thirds of world GDP by
2050 (Thirlwell, 2012).
37
Services firms are counted as goods exporters if they have sent physical goods abroad, based on data recorded by
the Australian Customs and Border Protection Services.
38
Further on, the Australian Bureau of Statistics (2013) acknowledges that their ‘Characteristics of Exporters’
survey does not capture a representative sample of smaller firms, which may under-represent the importance of
services exporter even more.
39
It should be stressed though that the TiVA database is an analytical database and the results should be interpreted
as estimates rather than as real observed/collected statistics. Particularly for services trade, a number of missing
values across countries and services categories are estimated.
40
While the cost represented by Australia’s remoteness from major markets as measured by per capita GDP was
estimated at more than 10% in 2005, that handicap could drop by 3 percentage points by 2050.
80
Remoteness provides at the same time some natural protection for industries as higher trade costs
render imported services less competitive. This may explain the lower import penetration in Australia as
other barriers to imports of services in Australia have been rather low relative to other OECD countries.
The OECD Services Trade Restrictiveness Index (STRI) reveals that barriers are concentrated in
restrictions to the movement of people and foreign ownership, with restrictions in other categories such as
discriminatory measures and standards, regulatory transparency, or barriers to competition being
concentrated in only few services activities (see Box 11). In terms of sectors, courier, air transport,
maritime freight and rail freight have been relatively more protected than the rest of services, with the
aggregate of services industries ranking low in barriers relative to the STRI average.
FIGURE 44.
IMPORT PENETRATION AND EXPORT RATIO, SERVICES, 2000 AND 2009
Import penetration
81
Export ratio
Source: OECD-WTO Trade in Value-Added (TiVA) database
82
BOX 11. SERVICES TRADE RESTRICTIVENESS: AUSTRALIA
The STRI project was launched by the OECD Trade Committee in 2007 as a tool for quantifying barriers
to trade in services in 40 countries at the level of the industry (see Chapter 1 Box 5 for more details).
Indices for 18 sectors were calculated and were publicly released in May 2014: three audio-visual services
(motion pictures, broadcasting, sound recording), construction, computer services, courier (including postal
services), distribution, two financial sectors (banking and insurance), four professional services (legal,
accounting, architectural, engineering services) and four transport services (air –covers establishment only, maritime freight, road freight, rail freight).
In almost all industries, Australia stands out among OECD countries with the lowest restrictiveness scores,
reflecting largely an open market for foreign services providers. In 17 out of the 18 sectors covered,
Australia is below the sample average value. Deregulation of services sectors in the 1990s as well as
extensive privatisations and measures to strengthen competition have all contributed to an environment that
is friendly for business. There are two categories nevertheless where barriers still remain across sectors: i)
restrictions to the movement of people (such as for example labour market tests for intra-corporate
transferees, independent and contractual services suppliers) and ii) restrictions to foreign ownership that
affect the establishment of commercial presence in the country (such as for example screening
requirements, restrictions to the acquisition of land by foreigners or requirements that at least one director
be resident). Given the importance of commercial presence, these are particularly relevant for most
services activities.
Looking closer at results for specific sectors, there are four activities that are relatively more protected than
others (yet still the overall restrictiveness is below or close to the average): courier services, air transport
(establishment), maritime freight and rail freight. In courier services, Australia maintains a state-owned
postal service monopoly on letters weighing up to 250g. In air transport, there are no foreign equity limits
for domestic airlines but international airlines cannot be controlled by foreign shareholders. Australia has
nonetheless the lowest STRI value in the sample of countries (as other countries are more restrictive). In
the case of maritime freight, there is also a foreign equity limit and there are restrictions to own and
register vessels under the national flag. Lastly, rail freight is a transport service where not all the procompetitive regulations are in place to guarantee the access to foreign suppliers. However, it should be
noted that due to its geography, it is not possible for Australia to have international rail transport.
Overall, while the Australian market is relatively open to foreign services providers, there is scope of
improvement by relaxing restrictive regulations under specific categories and within specific sectors that
could ultimately stimulate competition and productivity in some critical services activities.
STRI of Australia by sector and policy area
83
Trade is however only part of the international engagement by Australian service providers;
investment is another – important - way of providing services abroad (Mode 3 – commercial presence). In
general, economic distance limits the growth of services trade but is less of a constraint on investment as
illustrated by the importance of Mode 3 for the supply of services abroad (see Part 1). In order to
overcome (some of) the large trade costs, foreign companies have set up subsidiaries in Australia to serve
the local market, while reversely Australian companies have located subsidiaries abroad to serve foreign
markets.
As discussed in Part 1, data on MNE activities can provide the necessary insights into the commercial
presence (Mode 3) in services but are not available for a large number of countries, including Australia. An
experimental ‘Survey of Outward Foreign Affiliates Trade’ in 2003 showed that financial and insurance
services were by far the largest category of services provided by Australian foreign affiliates41. More
recent data are only available for two types of services categories; a study by Australia’s International
Legal Services Advisory Council (ILSAC) concluded that export data significantly underestimated the
total provision of legal services abroad in 2006. Legal services provided abroad by Australian companies
(i.e. exports and commercial presence) were reported to be AUD 675 million, which is 142% higher than
the official export statistics for this service category.
A survey commissioned by the Department of Foreign Affairs and Trade (DFAT), Australian
Government focusing on the finance and insurance sector in 2009-2010 underlined again the importance of
Australia’s foreign affiliates for this type of services; Australia had according to this survey 1,245 finance
and insurance foreign affiliates operating in 70 countries around the world. The total economic value of
finance and insurance services provided by these affiliates was valued at AUD 35.1 billion, thereby
accounting for 96% of total services sales abroad of Australia’s finance and insurance sales. Exports
accounted only for 4% of internationals sales, explaining the low ranking of finance and services in
Australia’s services exports.
Given the unavailability of statistics of Australia’s outward investment in services, an attempt was
made to use the inward statistics of host countries to identify Australian affiliates abroad. Figure 47
presents the share of Australia in total foreign employment as well as the absolute number of jobs across
different countries in individual services industries. The majority of Australian outward investment in
services goes to the United Kingdom: in all services industries, the number of ‘Australian’ jobs abroad is
the largest in the United Kingdom with finance and services accounting for half of this. Except from Trade
and Repair (including wholesale and retail), Australian presence in services industries abroad seems to be
concentrated in only a couple of countries. It should be stressed however that the information on
Australia’s outward investment based on these so-called mirror statistics provides only a partial view of
Australia’s outward investment in services.
First, the OECD AMNE Database does not include all host countries across the work but only these
countries that collect statistics on foreign affiliates. Second, even if an Australian presence is observed in a
country, the information may be treated as confidential for statistics purposes (due to the small number of
Australian affiliates); these cases are included in Figure 52 with N/A. The analysis thus shows that mirror
statistics on inward investment are not a perfect substitute for collecting own statistics on outward
investment, even in the case if inward statistics would be available for all countries.
41
A significant proportion of services sales could however not be classified to a specific services category, either
because they were confidential or could not be separately identified.
84
FIGURE 45.
AUSTRALIAN AFFILIATES ABROAD IN SERVICES, 2011
Share of total foreign employment and total number of jobs
Trade and repair (ISIC 45 to 47)
Transportation and storage (ISIC 49 to 53)
Information and communication (ISIC 58 to 63)
Finance and insurance (ISIC 64 to 66)
85
Professional, scientific and technical activities
(ISIC 69-75)
Administrative and support service activities
(ISIC 77-82)
Source: OECD Activities of Multinational Enterprises (AMNE) Database.
In the absence of MNE data, FDI are typically used to get some idea about the international
investment of firms, although it should be kept in mind that FDI data capture financial flows without
necessarily representing significant economic activities42 (see Part 1). FDI data show that services account
for the majority of FDI globally; in some countries services account for more than 80% of FDI stocks
(Figure 45). The services share in Australian FDI is somewhat lower, as the mining sector accounts for
about one third of inward and outward FDI stock in Australia (DFAT Australian government, 2013).
The most important services sector in outward Australian services FDI is by far finance and
insurance, representing 80% of the total outward FDI stock in services by Australia (Figure 46); for
comparison, finance and insurance accounts only for one-third of world outward FDI stocks while other
business services accounts for nearly half of outward FDI stocks at the world level (see Annex 2).
Nevertheless, in recent years Australia has become an important international investor abroad in a number
of other services sectors like transport and telecommunications but also wholesale and retail trade (see Box
12). The sectoral distribution of inward FDI stocks is more evenly spread: financial intermediation
services, and wholesale and retail are the most important services sectors, followed by transport, storage
and communications, and renting and business services (Figure 47).
42
It should be taken into account that FDI flows in finance and insurance most likely include financial flows passing
via Special Purpose Entities (SPEs) as these MNE affiliates, because of their financial activities, are assigned to
this industry.
86
FIGURE 46.
INWARD AND OUTWARD FDI POSITIONS AS A PERCENTAGE OF GDP, 2011
Source: OECD, International Direct Investment Database and Annual National Accounts.
FIGURE 47.
INWARD AND OUTWARD FDI POSITIONS AS A PERCENTAGE OF GDP,
AUSTRALIA 2011
Inward FDI stocks
Outward FDI stocks
Note: The sectoral distribution of world FDI is presented in Annex 2.
Source: OECD, International Direct Investment Database.
87
BOX 12 GLOBALISATION OF RETAIL SERVICES
The internationalisation of the retail sector is a relatively recent phenomenon. From the mid-1990s
onwards, the retail industries undertook substantial transformation and a period of sustained engagement
with the global economy began in a small number of OECD countries. Other OECD countries, whose retail
systems remained essentially ‘traditional’ in the mid-1990s, experienced that engagement in an importer
mode.
The acceleration of retail FDI in the late 1990s primarily involved European and US retailers (mostly
grocery/general merchandise operators) exporting capital and expertise to the emerging economies of East
Asia, Latin America and Central/Eastern Europe, as well as developing store networks in these countries.
The FDI acceleration was driven by a number of factors discussed in OECD (2010) such as:
 the longer-term growth opportunities offered by emerging economies with ‘traditional’ retail
systems;
 the consolidating, and often increasingly tightly regulated, home markets of these firms;
 the capacity of the largest of these firms to leverage their increasing core-market scale and
free cash flow for expansionary investment in order to secure the longer-term higher growth
opportunities offered by the emerging markets.
In turn the process was facilitated by
 full or partial liberalisation of trade and market access in many of the emerging economies;
 the availability of low-cost capital;
 emulation of the ‘first mover’ benefits seen to have accrued to the early exporters;
 the emergence and adoption of ICT technologies which provided essential management tools
to assist the control of large dispersed operations
Australia is home to some of the world’s leading retailers such as Woolworths and Wesfarmers figuring
both impressively in the Top 20 retailers, at 17th and 18th respectively according to Deloitte (2013).
Wesfarmers continues to top the list of the 50 fastest growing retailers for the five year period from 20062011, but this is predominately driven by its acquisition of Coles in November 2007. With many retailers
facing challenging economic conditions in local markets, there has been a clear drive to seek growth
opportunities abroad in countries with stronger economic conditions and growth prospects. This has been
particularly evident in Australia where the influx of foreign retailers over the past two or three years has
been significant.
Sources: OECD (2010) The Globalisation of trade in retail services; Deloitte (2013)
88
3. Australian services on international markets through exports43
A snapshot of services exports and imports in Australia
Exports of services from Australia have consistently increased from roughly AUD 13 billion in 1990
to more than AUD 50 billion in 2012, averaging an annual growth rate of 6.2% (Figure 48). Services are
the second largest export category in Australia after natural resources but before manufacturing and
agricultural products (Department of Foreign Affairs and Trade (DFAT), Australian Government, 2013a).
The strong export growth of services has slowed down somewhat in recent years due to a number of
reasons: the worsening economic situation in several regions of the world, the high Australian dollar and a
range of inhibiting factors such as new visa requirements for students, etc. (Department of Foreign Affairs
and Trade (DFAT), Australian Government, 2011). Largely similar to other OECD economies, services
account for about one sixth of total (gross) exports from Australia - services are around one quarter to one
half of exports to many trading partners, but can be up to 90% in the case of Ireland and as low as 3.9% in
the case of Japan.
Services imports in Australia have grown at roughly the same rate as exports up to 2008. The global
financial crisis has resulted in a significant drop in Australian services imports, but since 2009 imports
have picked up again and are growing stronger than exports, resulting in a trade deficit in services for
Australia.
FIGURE 48.
EXPORTS AND IMPORTS OF SERVICES, AUSTRALIA 1990-2012
Source: Australian Bureau of Statistics (Cat. No 5368)
43
In the absence of MNE data including for Australia and the smaller suitability of FDI data to analyse economic
performance, the analysis takes – out of necessity – only exports into account to discuss the competitiveness of
Australian service providers on international markets.
89
The growth in services exports from Australia has been mainly driven by growth in education,
tourism and business services44, although almost all services categories have grown in value between 1990
and 2012. Other personal travel (i.e. foreign tourists travelling to Australia) and education-related travel
(i.e. foreign students coming to Australia for their studies) – both largely Mode 2 - are by far the two
largest export categories in Australian services and represent together more than half of Australia’s export
in services in 2012 (Figure 49). Business services at large including finance and insurance,
telecommunications and information and other business services account for another quarter of services
exports from Australia. At the other side, the different categories of transportation services have fallen in
importance; while transportation as a whole accounted for almost a third of Australian services exports in
1992, this share has fallen to one-eighth in 2012.
The composition of services imports is a bit more evenly spread across different categories, with
transportation services still accounting for a quarter of Australian services imports in 2012. The share of
other personal travel has almost doubled between 1992 and 2012, indicating the growing tourism of
Australian residents abroad. Intellectual property is more important in services imports than in exports,
pointing to the significant payments of royalties and license fees by Australia to the rest of the world.
FIGURE 49.
EXPORTS AND IMPORTS OF SERVICES BY CATEGORY, AUSTRALIA 1992-2012
Exports 1992
44
Exports 2012
See Annex 1 for the list of services categories according to EBOPS 2010.
90
Imports 1992
Imports 2012
Note: Other services include: Manufacturing services on physical inputs owned by others, Maintenance and repair services n.i.e. and
Construction.
Source: Australian Bureau of Statistics (Cat. No 5368.0)
The major markets for Australia’s services exports in 2012 were the United States, the United
Kingdom, China, New Zealand and Singapore; the EU-27 together was Australia’s largest export market
(Figure 50). Asia as a whole has become much more important as a destination for Australian services
exports since 2000: about half of Australian services exports went to Asian markets in 2012. Particularly
strong growth has been recorded in China, but also other Asian economies like India and Malaysia have
become more important between 2000 and 2012. In contrast, the share of Japan in Australian services
exports dropped from 10.6% in 2000 to 4% in 2012.
The United States and EU-27 (taken as a single entity) were the most important sources of services
imports in Australia; together they were responsible for about 41% of Australian services imports. Asia is
less important in services imports than in exports, and accounted for about one third of services imports in
Australia in 2012. Australia is a net exporter of services to Asia.
The composition of Australian services import and exports differs across countries of
destination/origin. Australian exports and import to/from the United States are concentrated in business
services at large, including finance and insurance, telecommunication, engineering services, etc. Exports
and imports to/from Asia are heavily orientated towards travel related services including education (see
below).
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FIGURE 50.
EXPORTS AND IMPORTS OF SERVICES BY COUNTRY, AUSTRALIA 2000-2012
Exports 2000
Exports 2012
Imports 2000
Imports 2012
Note: Services not allocated geographically are excluded from the graph.
Source: OECD, Trade in services database, November 2013.
Australia’s Business Survey 2014 (Export Council of Australia, 2014), which surveys individual firms
including also a large number of respondents in services industries, presents largely similar results when
analysing the most important overseas markets. The top-10 overseas markets in terms of international
revenue (through exports and foreign presence) overall were found to be a mix of countries that are
geographically close (New Zealand but also three ASEAN countries – Singapore, Malaysia and Indonesia
– and Papua New Guinea), are large economies (China, Japan and the United States) and/or have historical
and linguistic ties with Australia (six countries are Commonwealth countries: the United Kingdom, New
Zealand, Singapore, Malaysia, India and Papua New Guinea).
Five of these markets (Japan, the United States, China, India and Indonesia) were also identified as
the most difficult markets in the same survey, with important differences across industries. Barriers faced
by Australian firms related to market information (local culture, regulation, etc.), financial barriers
(customer payment, exchange risk, etc.), border restrictions (tariffs and quotas, customs costs and delays,
etc.) and laws and regulations (licenses and standards, discriminatory regulations, etc.).
92
Comparative advantage in Australian services exports
Australia had a market share of about 1.4% in world export of services in 2012; this market share has
remained roughly constant between 1998 and 2012 (Figure 51). The largest actors in the global export
market for services are the United States with a 15% market share, the United Kingdom (7%) and
Germany (6.5%). In contrast to manufacturing where emerging economies have become more important
during the past decade, developed economies are the most important services exporters, with the exception
of China and India. The geographical distribution of services value-added shows that developed
economies account for about three quarters of the value that is created in services industry globally (Figure
52). This share has fallen over time but the decrease is much smaller than in global manufacturing (see
OECD, 2012a).
FIGURE 51.
EXPORT MARKET SHARES FOR SERVICES, 1998-2012
Source: IMF, Balance of Payments statistics.
93
FIGURE 52.
REGIONAL SHARE OF GLOBAL VALUE-ADDED IN SERVICES SECTORS (19952011)
1995
2011
Source: OECD calculations using data from the United Nations Statistics Division.
Revealed Comparative Advantage (RCA) indices show in which services categories Australia is
performing relatively better (in terms of exports) than other countries. The calculation of RCAs for
services exports is however not as straightforward as for merchandise exports, because of the smaller
availability of services statistics with a lot of missing values across countries and across services categories
(see Box 13). The results overall indicate that Australia’s competitiveness on the global market for services
(through exports, hence Modes 1, 2 and 4) is strongly concentrated in a number of services categories
(Figure 53).
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BOX 13. DATA SOURCES USED IN THE ANALYSIS OF AUSTRALIAN SERVICES IN
INTERNATIONAL MARKETS THROUGH EXPORTS
The main data source used in the analysis is the IMF Extended Balance of Payments statistics where flows
by EBOPS category are reported for all countries (developed as well as emerging economies), hence
allowing the calculation of RCA indices. For the years after 2005, trade in services in the database is
reported according to the framework set by the 6th edition of the Balance of Payment Manual
(BPM6/EBOPS 2010). Data for previous years (until 2008) follow the framework set by the 5th edition of
the Balance of Payment Manual (BPM5) and the Extended Balance of Payment on Services classification
released in 2002 (EBOPS 2002). The differences between EBOPS 2002 and 2010 concern the
enhancement of the "change of ownership" principle. This implies revisions of the concepts of goods for
processing and merchanting transactions.
Unfortunately, detail by partner country is not available in the IMF database; mirror statistics on exports by
partner country reported by Australia have been used to compensate for the unavailability of imports by
partner country in the IMF BOP database. The OECD Trade in Services Database includes trade flows
(imports and exports) by partner country and activity, according to BPM5/EBOPS 2002 and
BPM6/EBOPS 2010. Data for Australia are reported up until 2012, and the latest years after 2008 are only
reported in BPM6.
Education-related travel stands out as the most competitive services category (in terms of RCA)
showing the large attractiveness of education in Australia for foreign students. Academics are often
internationally recruited, teaching takes place in English; degrees follow a flexible academic system with
shorter study requirements; and research is generously funded relative to other countries, making Australia
a popular destination for students from the whole world. Australia has witnessed a huge inflow of students
from Asia; more than 80% of Australian exports of education services were destined to Asian countries,
with China and India accounting for the largest share (Department of Foreign Affairs and Trade (DFAT),
Australian Government, 2013b). Reversely, Chinese trade data show that education has been the most
intensively imported service from Australia throughout the last decade, while the number of Chinese
international student enrolments in Australia increased three-fold from 49,391 in 2002 to 149,758 in 2012
(Department of Education, 2012)45.
Travel services in general are important in Australia’s exports of services, as Australia also shows a
comparative advantage for business travel and personal travel. Australia also occupies a strong position in
the global market of postal and courier services, although this services category only represents 2% of
Australian services exports46. Other ‘export-competitive’ services categories for Australia are other
personal, cultural and recreational services and passenger transport, although the RCA index is only
marginally above one.
45
In addition to Mode 2 exports of education services, also other modes of education services provision has
substantially increased; for example, 42,000 students availed Australian public Vocational Education and Training
(VET) services in 2012 in China.
46
It is not clear to what extent high shipment costs because of the remoteness of Australia may affect this result.
95
Australian providers of other services categories seem less competitive in international markets
through exports. Despite the fact that Australian exports in these service categories have significantly
grown during the past decade, Australia is not export-competitive in most of the knowledge-intensive
services such as telecommunications and information, financial services, technical, trade-related and other
business services. Large players like the United States and the United Kingdom have built up strong
positions in these services categories.
FIGURE 53.
REVEALED COMPARATIVE ADVANTAGE INDEX FOR SERVICES (AUSTRALIA,
2011)
Source: OECD calculations using IMF (Balance of Payments statistics) Databases.
Two caveats should be emphasised when deriving conclusions on international competitiveness in
services from RCA indices, in addition to the general observation about the lesser availability of services
data. First, because data are recorded in gross terms, services sectors that internationalise intensively
through downstream industries tend to appear less competitive than services targeting final consumers. The
bias is larger the more intensive indirect internationalisation is with respect to other countries; indirect
internationalisation in Australia is significantly above the OECD average (Figure 8). The fact that
business-oriented services providing inputs to manufacturing or mining industries, such as financial
services, construction, transport or business services, appear less competitive in international markets may
be partly attributed to the way services trade is measured
Second, the majority of services are supplied abroad through commercial presence; estimates suggest
over half of services supplied abroad happen through Mode 3 (Table 1, Part 1). Similar estimates,
discussed above, for Australia suggest that commercial presence through MNE affiliates accounts for
almost two-thirds of Australian services supplied abroad47 (Magdeleine and Maurer, 2008). The choice for
exports versus investments in servicing foreign markets varies across industries, hence the weak(er)
position of Australia in a specific services sector may be counterbalanced by a strong(er) competitive
performance of Australian service providers abroad through commercial presence.
47
This is most likely related to the remoteness of Australia in the global economy (see Part 1)
96
More detailed insights on Australia’s services export portfolio (thus abstracting from foreign presence
as mode of supplying services abroad) can be obtained through a growth share matrix 48 which relates the
export performance of Australian service providers to the size and growth of world exports across services
categories. Are Australia’s strengths in services exports concentrated in large and growing services
categories, or are they rather situated in services for which the global market is small and/or slowly
growing49? Figure 54 shows on the horizontal axis the 2011 market share of Australia across different
services categories, while the vertical axis presents the growth in world exports in these services categories
between 2005 and 201150; the size of the balls is proportional to the size of world exports in these same
services categories. Roughly speaking, the quadrant upper right includes strong growing activities (at the
world level) in which Australian service providers shows significant competitive strengths (in terms of
exports), hence these activities can be considered to provide strong growth opportunities for Australia. The
quadrant below right also shows competitive activities of Australian services providers but in a rather
slowly growing world market. The quadrant upper left includes services activities who witness a strong
global growth but Australia is not able to benefit from this growth as Australian services providers lack
competitive strength in these activities. The quadrant below left are activities where Australia does not
possess competitive capabilities but these services activities grow relatively less on world markets.
The results overall show that Australia has built up a strong position (i.e. RCA > 1) in services
categories that, except from other personal, cultural and recreational services, show relatively slower
growth on a global scale51. Through its strong export performance in travel services, Australia captures a
considerable share of the large global market for travel (business as well as personal which includes
education-related travel). The market for travel services however shows lower growth on a global scale, i.e.
world exports of travel services grow slower than total world exports in services. The global market for
postal and courier services, another services category in which Australia has a comparative advantage,
shows also a slower growth and is also (still) relatively small. Knowledge-intensive services are
significantly growing (in exports) across the world, but the weaker international competitiveness of
Australian providers suggest that Australia benefits less from the growth opportunities in these services
categories. A number of global markets for these services categories like technical, trade-related and other
business are not only strongly growing but also large on a global scale.
48
Similar to the Growth-Share Matrix of the Boston Consulting Group, which was developed to guide companies in
their investment decisions on specific product-market combinations.
49
In order to prevent that a better coverage of services trade statistics might bias the results (see Lipsey 2009),
growth figures are only calculated for countries that report the specific service category in 2005 as well as 2011.
50
In order to be consistent with later graphs where the growth in foreign services markets (proxied by imports of
services in these markets) is presented, the vertical axis presents the growth of world imports across services
categories; it should be kept in mind however that mirror statistics in international trade are not perfect, meaning
that total world imports may differ from total world exports in certain services categories.
51
It should be stressed that the growth in these services categories is significantly positive, but lower than the
average growth of total services exports.
97
FIGURE 54.
GROWTH-SHARE MATRIX OF AUSTRALIAN SERVICES EXPORTS, BY
SERVICES CATEGORY, 2005-2011
Source: OECD calculations using IMF (Balance of Payments statistics) and OECD (Trade in Services) Databases.
New export market opportunities for Australian services providers
A similar growth share matrix using countries (as destination of Australian exports) instead of
industries allows the identification of strengths and weaknesses of Australian services exporters in
geographical markets. Figure 55 shows the market share of Australia by importing market (i.e. the share of
the country’s services imports provided by Australian firms52) on the horizontal axis, while the vertical axis
presents services import growth in those markets during 2005-2011. The results underscore the importance
of Asian economies in the export portfolio of Australian service providers. China, Korea and other SouthEast Asian economies figure prominently in the upper right side quadrant: services imports in these
countries have grown more strongly than the world average and Australia has acquired large market shares
in these foreign services markets. Australian service providers may thus be in a favourable position to
capture future growth in these markets, some of which are also already very large in absolute terms.
52
This is calculated as the share of Australian services exports in percentage of total services imports in that country
since statistics on services imports by partner country are not available. Differences in mirror statistics (exports
from country A to country are not equal to imports by country B from country A) may to some extent bias the
results.
98
Australia also shows relatively large market shares in English-speaking countries (United States,
United Kingdom, South Africa and New Zealand) highlighting the importance of cultural ties for services
trade. Australian services providers have a clear advantage in these markets which on the world level grow
relatively less (quadrant below right); but the US and UK services markets are large in volume. The strong
performance of Australian providers in India is partly explained by cultural ties as well, given the two
countries’ Commonwealth connection. Large European services markets feature in the lower left quadrant
indicating that they are growing less rapidly than the world average while they are also relatively less
important for Australian service providers probably as a result of the large distances between Europe and
Australia.
FIGURE 55.
GROWTH-SHARE MATRIX OF AUSTRALIAN SERVICES EXPORTS, BY
COUNTRY OF DESTINATION, 2005-2011
Source: OECD calculations using IMF (Balance of Payments statistics) and OECD (Trade in Services) Databases.
In order to assess whether Australian service providers effectively capture growth opportunities in
different markets, Figure 56 relates the services import growth in individual economies during 2005-2011
(vertical axis) to the growth of services exports from Australia to these economies rather than the share
(horizontal axis). Countries positioned to the left of the 45 degree line point to ‘missed’ opportunities as
growth of Australian services exports has not fully matched the total growth in the services market in these
countries. The results overall show that Australian service providers have expanded their position in most
markets; but very noticeable is that in a number of large Asian economies such as China, India and also
Japan Australian services exports to these countries have not followed the overall growth of these
countries’ imports of services. Despite their strong position in these markets (see Figure 51), Australia
99
appears to lose ground in these Asian markets for services which in the case of China and India are very
rapidly expanding. ‘Missed’ opportunities for Australian services providers emerge also in some (smaller)
European economies. In other, particularly larger, European markets such as France, Germany and Italy
services export growth from Australia exceeded market growth. The same is true for Korea, Canada, South
Africa, Mexico and other South Asian economies.
FIGURE 56.
GROWTH-GROWTH MATRIX OF AUSTRALIAN SERVICES EXPORTS, 2005-2011
Source: OECD calculations using IMF (Balance of Payments statistics) and OECD (Trade in Services) Databases.
Taking the analysis one step further and focusing on Asia aims to identify the strengths and
weaknesses of Australian service providers in specific services categories in Asia and in individual markets
in the region. Figure 57 presents the results for Asia as a whole and China in particular; the results for
other individual countries are presented in Annex 7, clearly showing the differences across countries. The
results especially show the large importance of travel (including tourism but also education53) in Australian
services exports to Asia; travel services (including education-related travel) largely dominate the exports of
Australia to all Asian countries. Looking at Asia as a whole, Australia has reinforced its already strong
position in travel services. Looking at individual Asian countries shows that this is particularly the case in
India and Korea; in other Asian countries like China, Japan and other Southeast Asia, the growth in
53
Data availability does not allow for the analysis on a more disaggregated level of services categories.
100
Australia’s exports of travel services lags the market (for travel abroad) growth in these countries. Asian
tourists and students in these countries increasingly look also to other countries.
Transport services are a second important category of services imported in Asia, somewhat more in
industrialised countries like Japan and Korea while less important in emerging economies like China and
India. Australian service providers do not occupy a strong position in Asian transport markets and this
may also explain why Australia seems to miss out on opportunities in these markets (i.e. Australian exports
to these markets grew more slowly than total imports in these markets). The Asian markets for other
service categories (including knowledge intensive services) are relatively smaller; although in Japan and
other Southeast Asia the market for other business services is relatively large and still expanding.
Australian providers play an overall smaller role in these markets and risk to become even less important
as Australia’s export growth does not follow total market growth in these countries. Interesting
observations though are the strong and growing importance of Australian providers (through exports) in
financial services in China and telecommunication services in India.
It should be stressed again that the above analyses are based on exports of services, hence the results
apply only to a fraction of the international activities of Australian services providers. For example, the
above analyses showed only a smaller importance of exports in finance and insurance services, but
estimates show that most of the international activities in this industry is realised through foreign affiliates.
The lack of AMNE statistics for Australia (in service industries) prevents a similar analysis of the
competitiveness of foreign affiliates by Australian services providers. The choice for exports or
commercial presence is different across industries and depends on the characteristics of the services
offered but also on the existence of specific barriers in host countries. The OECD Services Trade
Restrictiveness Index (STRI) shows that barriers vary across host countries even within services industries,
which may explain why Australian service providers are doing better in one country compared to others.
More data and analysis is needed to look into this in more detail.
101
FIGURE 57.
AUSTRALIAN SERVICES EXPORTS TO ASIA, 2005-2011
ASIA
Growth-share matrix of Australian services exports to
Asia, by services category, 2005-2011
Growth-growth matrix of Australian services exports
to Asia, by services category, 2005-2011
102
CHINA
Growth-share matrix of Australian services exports to
China, by services category, 2005-2011
Growth-Growth matrix of Australian services exports to
China,
by
services
category,
2005-2011
Note: data availability restricts the analysis to be undertaken only for the main categories of services exports/imports
Source: OECD calculations using IMF (Balance of Payments statistics) and OECD (Trade in Services) Databases.
103
CONCLUSIONS AND POLICY MESSAGES
Services have become a dominant feature of economic activity in developed economies, and the wealthiest
economies derive the majority of their income and employment from services. The services sector is
quantitatively the most important sector with market and non-market services contributing 70% of GDP
and accounting for about 75% of total employment in Australia:
 developed economies account for about three quarters of the value that is created within in
services industries globally;
 the tertiarisation, i.e. the growing importance of services, of OECD economies is driven by
demand factors (such as rising incomes, demographic changes resulting in ageing population,
growing participation of women in the workforce, etc.) as well as supply factors (in particular
the differential growth rates in productivity between manufacturing and services);
 in addition, services in Australia have significantly benefitted from the recent resources boom
as the growth in national income accompanying the commodity-price boom has triggered an
economy-wide adjustment process with the reallocation of productive resources towards
(domestic) services;
 non-market services account for 40% of services employment in Australia; wholesale and
retail, finance and insurance, and real estate, renting and business services are the most
important categories within market services.
The importance of the services sector for national economies is not only determined by its large size, but
also by the growing and complex interactions between services and other industries. Services are
increasingly used as important business inputs in the production processes of manufacturing, mining,
resources and agricultural industries:
 part of the growing systemic character of services is however a statistical ‘artefact’ as the
outsourcing/offshoring of activities from other industries to specialised services providers has
assisted to identify services transactions;
 nevertheless, a broad trend of servitisation of the manufacturing industry is observed with
also the remaining in-house/intra-firm activities increasingly displaying service characteristics
in terms of jobs, innovation, etc.
 the services value-added content of manufacturing (exports) has increased in almost all
OECD countries reflecting the growing bundling of and goods and services such as design,
development, marketing, warranties and after-sales care; services – typically developed on the
basis of knowledge-based capital - add significant value to manufactured products and assist
to differentiate, customise and upgrade products and as such help to gain a competitive
advantage;
104
 in addition, services are often referred to as the glue that holds GVCs together and ensure that
international production networks function in a smooth and timely manner; logistics,
communication, financial and business services allow for the coordination of dispersed
activities and hence raise the productivity and efficiency of GVCs;
 in Australia, also the mining industry as well as the agricultural industry (in addition to the
manufacturing industry) are found to source important inputs from services industries;
 as such, services contribute to the international competitiveness of the Australian economy
and support the competitive performance of internationally engaged firms but also of purely
domestic firms in Australia.
Structural change has been transforming knowledge and ICT-intensive services such as finance and
services, business services and telecommunications into dynamic industries in terms of growth,
productivity, jobs, new firm creation, new products, etc.:
 the rise of these so-called ‘modern’ services is strongly driven by technology, transportability
and tradability which have given certain categories of services a physical and storable
character; this in turn has made the transport of these services possible over long distances, in
no time and without quality deterioration;
 these categories of services are increasingly displaying the ‘progressive’ characteristics which
were until now mainly observed in manufacturing industries: growing productivity,
innovation, knowledge intensity and international tradability;
 the contribution of services to aggregate productivity growth has been rising in most OECD
countries; market services (excluding real estate) accounted for almost 80% of labour
productivity growth in Australia during the past decade.
The growth-enhancing potential of knowledge intensive services, not only in terms of jobs but increasingly
also in value-added and productivity, offers important growth opportunities for OECD economies,
including Australia. Policy makers are confronted with a sluggish economic performance in most
countries and are looking for new sources of growth:
 in contrast to most OECD economies, economic growth in Australia was strong in recent
years driven by record export prices of natural resources and historic levels of investment; ten
percent of the Australian economy was responsible for a third of the recent income growth;
with uncertainty growing over the economic prospects in emerging economies like China and
India, Australia need to broaden its growth model to become less dependent on the mining
sector for economic growth;
 Australian manufacturing suffers from a number of structural weaknesses (including small
scale, low productivity, etc.) which have limited its role in the Australian economy as well in
105
global manufacturing; further on, the process of deindustrialisation is further shrinking the role
of manufacturing in Australia; .
 because of their strong progressive characteristics, knowledge intensive services are an
important source of productivity growth and can help to turn around the downward trend in
Australian productivity;
 a stronger position of Australia in knowledge services will directly benefit other sectors in the
Australian economy as these services are heavily used in downstream industries like
manufacturing, mining and agriculture;
 Australian services can be expected to suffer less from the tyranny of distance than Australian
manufacturing as internationally tradable services are largely provided over ICT networks,
hence reducing the impact of transportation costs.
Services in Australia have been performing very well across a broad range of indicators with a
particularly strong financial sector; an international benchmark of knowledge intensive services point
however to some structural weaknesses in productivity and innovation within Australian services;
 Australian services have in general recorded strong growth in value-added, employment, and
exports; the resources boom has supported services to directly benefit from increased wealth
and rising purchasing power;
 knowledge intensive services in Australia have accordingly recorded strong growth rates but
these rates are overall lower than in other OECD countries; the employment share of
knowledge intensive services in Australia is above the OECD average but has remained fairly
stable during the past decade;
 knowledge-intensive services (especially financial services) in Australia have performed
better in productivity than manufacturing and mining, but productivity gaps (in levels and
growth rates) persist between Australia and other countries in these industries; nevertheless,
international comparisons of productivity have to be interpreted with care as measuring output
and productivity (growth) is not straightforward particularly in services industries;
 while Australian services overall show innovation rates which are on par with other OECD
economies, knowledge intensive services are not, like in other OECD economies taking the
lead on this: instead, innovation performance is similar across services industries in Australia;
 services innovation in Australia is less driven by R&D stressing the need to consider broader
forms of innovation activities beyond R&D when targeting service innovation in policies; .
 more analysis is needed to identify the reasons behind the relatively weaker innovation
performance of knowledge intensive services in Australia.
106
The strong performance of Australia in services exports is largely attributable to travel services, especially
tourism and education-related travel; Australia does not show a comparative advantage in knowledge
intensive services exports, although the provision of these services abroad also takes place through
commercial presence:
 Australia has a market share of about 1.4% in global services exports, which is double its
market share in world exports of manufactured goods; services are the second largest category
of Australian exports after natural resources;
 Australian exports of services have grown strongly during the past decade but have slowed
down somewhat in recent years for a number of reasons: the worsening economic situation in
several regions of the world, the high Australian dollar, etc.;
 half of Australian services exports concern the provision of services to foreign customers
(tourists, students and to a lesser extent business travellers) going to Australia; the success of
Mode 2 (i.e. consumption abroad) of services provision within Australia is largely explained
by the attractiveness of Australia as a host country and the quality and flexibility of education
institutions, etc.;
 Australia does not possess a comparative advantage in exports of knowledge intensive
services, which at the global level show the largest export growth; nevertheless, Australian
exports of knowledge-intensive services have grown significantly, particularly in business
services, and they accounted for one quarter of Australian services exports in 2012;
 it should be stressed though that knowledge-intensive services are to a large extent provided
abroad through the establishment of foreign affiliates (i.e. Mode 3 – commercial presence) and
this needs to be taken into account in the analysis of the competitiveness of Australian service
providers abroad; but a lack of data prevents the assessment of the performance of Australian
services through this mode;
 further on, many firms in service industries in Australia are actually categorised as good
exporters in Australian trade statistics;
 in addition, it should be taken into account that knowledge-intensive are also indirectly
exported, i.e. embodied in the exports of manufactured goods, because of the strong
intermediate use of these services.
The economic development of Asia creates important business opportunities for Australia; Australian
services providers have developed new export activities and markets, but could do probably more to tap
into these growth markets.
 domestic services sectors in emerging economies still lag behind the demand by both
households and business, resulting in rapidly growing imports of services in these countries;
107
 while distance is generally assumed to be of lesser importance for the international provision
of services, the emergence of large Asian markets makes Australia a less remote location in the
global economy;
 the growing importance of GVCs in Asia including the rapid emergence of Asian
manufacturers as global players creates a strong demand for high-quality knowledge-intensive
services; if managed well, the complementarity between Asian manufacturing capabilities and
Australian services capabilities could create important growth opportunities for Australia; the
growing importance of Asia as a destination for Australian services exports is largely driven
by Asian tourists and students going to Australia; although fast growing Asian markets occupy
a central position in Australia’s export portfolio, Australian services providers seem to miss
out on opportunities as the growth in Australian exports is not keeping pace with the market
growth in countries like China and India.
The larger international tradability of services also means that foreign providers increasingly look at the
Australian market for new and improved business opportunities; the growing international competition
will force Australian firms to provide services more competitively:
 distance from world markets generally limits countries’ exposure to international
competition, making foreign service providers less competitive in Australian markets and
hence offering some natural protection for Australian firms; the growing international
tradability of services via ICT networks will facilitate the provision of foreign services for the
Australian market;
 deregulation of services sectors in the 1990s as well as extensive privatisations and measures
to strengthen competition have all contributed to an environment that is friendly for business;
the OECD Services Trade Restrictiveness Index convincingly shows that the Australian market
is relatively open for foreign service providers (average ranking of Australia is lower than
OECD average) with courier, air transport, maritime and rail freight more protected than other
services industries; remaining barriers are especially concentrated in restrictions to movement
of people and foreign ownership, hence there is scope for improvement;
 the stronger international competition can be expected to result in growing productivity,
innovation and a wider choice for Australian consumers;
 but in light of the growing competition, Australian services providers will need to (further)
develop their competitive advantages and address their weaknesses; since especially
knowledge intensive services have become more internationally tradable, there is a clear need
for Australia to improve its productivity and innovation performance not only on international
markets but also in the domestic market.
108
A lot of the policy discussion across OECD economies has centred around manufacturing because of its
importance for productivity (as a source of economic growth), innovation (as a source of productivity) and
international tradability (as a source of export income and productivity); services have generally received
less attention but the growing size and the changing characteristics of services industries calls for a
changed focus of government policy, explicitly taking into account services industries:
 services and manufacturing clearly show important differences across a number of policy
domains, such that the traditional measures which are more geared towards manufacturing,
risk being less effective for services; for example, services innovation is more open, is less
R&D driven and receives less government support suggesting that existing R&D policy
measures may advantage manufacturing industries at the expense of services;
 while employment in a number of services sectors is concentrated at the low-end spectrum of
the skills distribution, the services sector in Australia also provides most of the high-skilled
jobs which underlines the importance of education and training policies for the further growth
of services; human capital is a crucial input into the provision of services because of the direct
contact with services customers but also for the necessary innovation in services; the different
innovation characteristics of services particularly calls for more attention to ‘softer’ innovation
capabilities;
 firm dynamics in services industries show higher rates of entry and exit happening at a
smaller scale (relative to manufacturing); young firms are not only an important source of
employment growth, but also play an important role in experimenting with new ideas thereby
driving innovation and economic growth; conducive framework conditions (product market
and labour market regulation, taxes, finance, etc.) which allow successful businesses to grow
or failing businesses to exit will be important in tapping the full growth potential of services
 but instead of only focusing what distinguishes manufacturing and services from each other –
as is often done in policy discussions, policy and research should especially analyse what
unites services and other sectors particularly now that GVCs have become so pervasive in the
global economy; the full potential of services can be only realised if the policy discussion takes
into account this broader approach.
The importance of services industries for policy is still not fully understood which is considerably linked to
the small(er) availability of data and statistics also in Australia. Statistical work on services is progressing
rapidly but nevertheless more policy evidence on services is needed:
 while manufacturing analysis is traditionally done at a high disaggregated industry/product
level and through international benchmarking, data availability dictates that the discussion of
services takes place at a much more aggregated level and often in a purely domestic context;
109
the heterogeneous character of services calls paradoxically however for analysis at a much
more granular level;
 current statistics are too manufacturing-oriented and are not able to sufficiently capture the
idiosyncratic characteristics of services for example in innovation, productivity, etc.; services
are traded in a variety of modes, output is much more heterogeneous, and regulation (covering
both domestic and cross-country transactions) is much more complex;
 mode 3 of services provision abroad (i.e. commercial presence) has been estimated to be the
most important channel for providing services internationally (on average, 50% of services
provided abroad and even 65% for Australia); data on this mode of international provision of
services however are largely unavailable with only a number of countries collecting statistics
on foreign affiliates.
110
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117
ANNEX 1 THE SIZE OF COMMERCIAL PRESENCE (MODE 3) VERSUS SERVICES
EXPORTS (MODE 1, 2 AND 4)
Turnover of affiliates abroad in the services sector as a percentage of
total exports of services, 2011
Country
%
Austria
Belgium
Canada
Czech Republic
Finland
France
Germany
Greece
Hungary
Ireland
Israel (2009)
Italy
Japan
Luxembourg
Norway
Poland
Portugal
Slovak Republic
Slovenia
Spain
Sweden
United Kingdom
United States
136.8
64.8
227.8
7.8
247.1
495.0
537.1
20.5
50.2
63.4
63.2
297.1
803.6
4.8
146.1
41.9
196.3
18.5
113.9
174.4
131.1
289.4
467.9
Source: OECD, Activities of Multinational Enterprises (AMNE) and Annual National Accounts databases.
118
ANNEX 2 COMPOSITION OF SERVICES SUPPLIED ABROAD
Commercial presence (Mode 3)
Turnover of MNE affiliates abroad, 2010
FDI (outward) stocks, 2011
Wholesale and
retail trade,
repair, 8.1%
Hotels and
restaurants, 0.9%
Other business
activities, 47.0%
Transportation,
storage and
communications,
6.2%
Research and
development,
0.4%
Computer
activities, 1.3%
Renting, 1.5%
Finance and
insurance, 32.2%
Real estate, 2.5%
Note 1) AMNE data for Austria, the Czech Republic, Finland, France, Germany, Greece, Hungary, Italy,
Norway, Poland, Slovenia, Spain, Sweden, the United Kingdom and the United States. 2) FDI data for
Austria, Belgium, the Czech Republic, Estonia, Finland, France, Germany, Greece, Hungary, Iceland,
Israel, Italy, Korea, the Netherlands, Norway, Poland, the Slovak Republic, Slovenia, Turkey, the United
Kingdom and the United States. 3) FDI data for the Czech Republic, Germany and the Slovak Republic are
2010.
Source: OECD, Activities of Multinational Enterprises (AMNE) database and Eurostat, New Cronos
database; OECD International direct investment database.
119
Exports of services (Modes 1, 2 and 4)
World total, 2012
Other business
services, 24%
Telecom., computer
& information serv.,
4.2%
Personal, cultural &
recreational
services, 1.2%
Government, 2.7%
Manufacturing
services on
physical inputs
owned by others,
1.5%
Intellectual
property, 6.9%
Maintenance and
repair services
n.i.e., 0.8%
Financial services,
3.2%
Insurance and
pension services,
4.2%
Construction, 2.6%
Transport, 24.4%
Travel, 23.4%
Source: IMF Balance of Payments.
120
ANNEX 3 EXTENDED BALANCE OF PAYMENTS SERVICES – EBOPS 2010
TOTAL SERVICES
1
Manufacturing services on physical inputs owned by others
2
Maintenance and repair services n.i.e.
3
Transport
3a.1
Passenger
3a.2
Freight
3a.3
Other
3a.3.1
Postal and courier services
3a.3.2
Other
4
Travel
4.1
Business
4.2
Personal
4.2.1
Health-related
4.2.2
Education-related
4.2.3
Other
5
Construction
6
Insurance and pension services
6.1
Direct insurance
6.2
Reinsurance
6.3
Auxiliary insurance services
6.4
Pension and standardized guaranteed services
7
Financial services
8
Charges for the use of intellectual property n.i.e.
9
Telecommunications, computer, and information services
9.1
Telecommunications services
9.2
Computer services
9.3
Information services
10
Other business services
10.1
Research and development services
10.2
Personal and management consulting services
10.3
Technical, trade-related and other business services
11
Personal, cultural and recreational services
11.1
Audio-visual and related services
11.2
Other personal, cultural and recreational services
12
Government goods and services n.i.e.
Source: Manual on Statistics of International Trade in Services 2010.
121
ANNEX 4 HYPOTHETICAL EXTRACTION: DELETING INDIVIDUAL SERVICES SECTORS
ACROSS THE WORLD, 2009
Decrease in output of agriculture in Australia, OECD and world
Decrease in output of mining in Australia, OECD and world
122
Decrease in output of services (incl. utilities) in Australia, OECD and world
Decrease in output of total economy in Australia, OECD and world
Note: the decrease in total economy’s output includes direct and indirect effects
Source: OECD calculations based on the Trade in Value-Added (TiVA) Database
123
ANNEX 5 AVERAGE WAGE BY INDUSTRY
Australia
Total economy = 100
United States
Total economy = 100
124
United Kingdom
Total economy = 100
Canada
Total economy = 100
Source: OECD Structural Analysis (STAN) database
125
ANNEX 6 INDICATORS OF SKILLS AT WORK
Source: OECD Skills Outlook 2013
For the categories of problem-solving skills, co-operative skills, self-organising skills, physical skills
and dexterity: a value of 0 indicates that the skill is never used; a value of 1 indicates that it is used less
than once a month; a value of 2 indicates that it is used less than once a week but at least once a month; a
value of 3 indicates that it is used at least once a week but not every day; and a value of 4 indicates that it is
used every day.
For the categories of skills, the results have been transformed using a statistical method so that they
have a mean of 2 and a standard deviation of 1 across the pooled sample of all participating countries, thus
allowing meaningful comparisons across countries and industries.
126
ANNEX 7 AUSTRALIAN SERVICES EXPORTS TO ASIA, 2005-2011
JAPAN
Growth-share matrix of Australian services exports to
Japan, by services category, 2005-2011
Growth-Growth matrix of Australian services exports to
Japan, by services category, 2005-2011
KOREA
Growth-share matrix of Australian services exports to
Korea, by services category, 2005-2011
Growth-Growth matrix of Australian services exports
to Korea, by services category, 2005-2011
127
INDIA
Growth-share matrix of Australian services exports to
India, by services category, 2005-2011
Growth-Growth matrix of Australian services exports to
India, by services category, 2005-2011
OTHER SOUTHEAST ASIA
(includes Hong Kong, China; Indonesia, Malaysia, Philippines, Singapore and Thailand)
Growth-share matrix of Australian services exports to
Growth-Growth matrix of Australian services exports to
other SE Asia, by services category, 2005-2011
other SE Asia, by services category, 2005-2011
Source: OECD calculations using IMF (Balance of Payments statistics) and OECD (Trade in Services) Databases.
128
ANNEX 8 SOURCE DATA FOR THE CHARTS IN THE REPORT
Figure 1: Source Data
Code
LUX
GRC
FRA
USA
ISR
DNK
BEL
GBR
PRT
NLD
ITA
CHE
JPN
IRL
SWE
CAN
ESP
AUS
FIN
NZL
AUT
ZAF
DEU
BRA
SVN
EST
ISL
HUN
TUR
POL
MEX
SVK
CZE
RUS
KOR
CHL
NOR
IND
CHN
IDN
"Market"
services
69.2
55.3
53.4
51.8
53.2
49.2
52.4
53.9
50.2
48.9
52.7
47.1
41.6
50.7
45.4
48.7
48.6
50.7
44.9
49.0
48.9
46.0
46.1
44.4
46.5
48.8
43.4
44.6
51.5
46.3
47.0
43.8
42.7
45.0
38.2
35.7
35.1
41.7
32.6
27.6
"Nonmarket"
services
16.3
25.5
25.9
26.8
24.1
27.4
24.2
22.1
23.7
24.7
20.6
25.9
31.1
21.1
26.0
22.1
21.9
18.7
24.4
20.3
20.1
22.4
22.2
23.1
20.3
17.6
22.7
19.8
12.0
16.7
14.0
16.7
17.7
13.9
19.2
21.8
21.5
14.0
10.7
10.6
Construction
Industry
Agriculture
5.8
2.5
6.2
3.7
5.7
4.8
5.7
6.8
5.7
5.3
6.0
5.6
5.6
1.7
5.6
7.4
10.1
7.7
6.8
5.9
6.8
3.8
4.6
5.3
6.0
6.4
4.4
4.0
5.0
8.2
6.5
9.1
6.8
6.5
5.9
8.1
5.5
8.2
6.6
10.2
8.3
13.3
12.7
16.4
15.2
17.2
17.0
16.6
18.2
19.5
18.7
20.6
20.5
24.6
21.2
20.1
16.9
20.5
20.9
18.2
22.5
25.4
26.2
21.6
24.5
23.6
21.3
27.0
22.5
24.8
29.0
26.9
30.5
30.2
33.9
31.0
36.5
18.5
40.0
36.9
0.3
3.4
1.9
1.2
1.9
1.4
0.7
0.7
2.2
1.6
2.0
0.8
1.2
2.0
1.8
1.6
2.5
2.4
2.9
6.6
1.6
2.5
0.9
5.6
2.6
3.6
8.3
4.5
9.0
4.0
3.4
3.4
2.3
4.4
2.7
3.4
1.4
17.5
10.1
14.7
129
All
services
85.6
80.8
79.2
78.6
77.3
76.6
76.6
76.0
73.9
73.6
73.2
73.0
72.7
71.7
71.4
70.8
70.5
69.4
69.3
69.3
69.0
68.3
68.3
67.5
66.9
66.4
66.1
64.4
63.5
63.0
61.1
60.5
60.4
58.9
57.5
57.5
56.6
55.7
43.2
38.2
Country
Luxembourg
Greece
France
United States
Israel
Denmark
Belgium
United Kingdom
Portugal
Netherlands
Italy
Switzerland
Japan
Ireland
Sweden
Canada (2009)
Spain
Australia (2011/12)
Finland
New Zealand (2009/10)
Austria
South Africa
Germany
Brazil (2009)
Slovenia
Estonia
Iceland
Hungary
Turkey
Poland
Mexico
Slovak Republic
Czech Republic
Russian Federation
Korea
Chile
Norway
India (2011/12)
China
Indonesia
FIGURE 2: SOURCE DATA
Employment
Country
Australia
Canada
France
Germany
Italy
Japan
United Kingdom
United States
1995
72.2
N/A
72.4
65.4
63.3
60.8
75.1
N/A
1996
72.6
N/A
72.9
66.5
64.1
61.3
75.4
N/A
1997
72.8
73.4
73.5
67.3
64.4
61.8
75.7
N/A
1998
73.9
74.2
74.0
67.8
64.7
62.9
75.8
79.1
1999
73.0
74.4
74.6
68.6
65.3
63.5
76.9
79.4
2000
74.1
74.4
75.0
69.4
65.9
64.1
77.6
79.7
2001
73.9
75.0
75.2
70.0
66.2
65.0
78.3
80.2
2002
74.5
75.3
75.6
70.7
66.5
66.0
79.1
81.0
2003
74.8
75.5
75.9
71.3
66.9
66.5
79.8
81.4
2004
74.4
75.5
76.3
71.9
67.1
67.4
80.3
81.5
2005
74.4
75.3
76.5
72.4
67.1
67.9
80.7
81.6
2006
74.6
75.6
76.8
72.8
67.3
68.0
81.0
81.6
2007
74.7
75.9
77.0
72.9
67.4
68.2
81.2
82.0
2008
74.6
76.3
77.2
72.9
67.7
68.7
81.6
82.5
2009
75.2
77.4
77.5
73.4
68.3
N/A
82.1
83.8
2010
N/A
77.4
78.1
73.8
68.9
N/A
82.4
84.2
2011
N/A
N/A
N/A
73.7
69.3
N/A
82.9
84.3
VALUE-ADDED
Country
Australia
Canada
France
Germany
Italy
Japan
United Kingdom
United States
1995
65.9
N/A
76.5
67.6
69.1
65.4
69.7
77.1
1996
66.4
N/A
76.7
68.8
69.4
65.4
70.1
77.3
1997
66.5
64.8
77.0
68.8
69.8
65.5
70.6
77.4
1998
66.8
64.9
76.9
69.4
69.9
66.3
71.4
77.5
1999
67.0
64.6
76.7
69.6
70.0
66.5
72.1
77.4
2000
67.8
64.1
76.7
69.3
70.3
66.3
72.9
77.3
2001
67.8
65.2
76.8
70.0
70.9
67.6
73.9
78.6
2002
68.1
65.4
76.9
70.7
71.1
68.2
74.4
78.6
130
2003
68.1
65.7
77.2
70.6
71.5
68.1
75.0
78.4
2004
68.5
65.8
76.9
69.9
71.3
67.4
75.2
77.9
2005
68.6
66.0
77.1
69.9
71.3
67.1
76.0
78.3
2006
69.0
66.8
77.3
69.4
71.1
66.9
76.6
78.4
2007
69.0
67.4
77.3
69.0
71.0
66.9
77.2
78.4
2008
69.1
68.0
78.0
69.8
71.4
66.9
77.5
79.0
2009
69.1
70.3
78.7
73.1
73.6
69.1
79.0
79.4
2010
N/A
69.7
79.0
70.6
73.1
N/A
78.6
79.2
2011
N/A
N/A
79.2
69.8
73.2
N/A
N/A
79.3
FIGURE 3: SOURCE DATA
Value-Added
Australia
OECD
Code and
year
1995
2009
1995
2009
TRD
16.2
12.0
18.5
14.4
HRE
3.3
2.0
3.6
3.5
TSC
13.7
10.4
10.0
9.1
FIN
10.3
10.8
8.4
8.7
RBA
33.0
41.9
29.0
32.3
PAD
5.8
4.8
9.0
10.5
EDU
6.5
5.5
6.9
6.4
HSW
7.2
8.4
9.1
9.3
CSP
4.0
4.2
5.5
5.8
EMPLOYMENT
Australia
OECD
Code and
year
1995
2009
1995
2009
TRD
27.4
22.6
24.1
21.2
HRE
7.3
9.0
8.1
8.5
TSC
9.4
7.8
8.3
7.4
FIN
5.3
5.1
4.9
4.3
RBA
12.5
17.4
14.4
17.4
PAD
5.8
8.3
9.5
10.2
EDU
9.7
9.7
9.6
9.1
HSW
13.7
14.7
13.3
13.2
CSP
8.8
5.3
7.8
8.9
EXPORTS
Code and
year
TRD
Australia
1995
21.9
OECD
2009
1995
2009
5.6
30.6
19.4
HRE
6.6
9.2
2.4
2.5
TSC
46.7
47.5
33.4
28.4
FIN
3.1
4.6
9.6
16.6
RBA
14.7
20.6
19.4
27.6
PAD
0.5
0.4
1.2
0.7
EDU
4.4
8.2
0.4
0.8
HSW
0.7
1.2
0.2
0.3
CSP
1.4
2.6
2.8
3.8
131
FIGURE 4: SOURCE DATA
Manufacturing
Code
20012012
Market services excl. real estate
20012007
20072012
SVK
EST
SVN
9.96
6.56
5.40
11.76
7.47
7.02
7.80
5.46
3.45
CZE
HUN
SWE
AUT
PRT
ESP
DEU
AUS
NLD
FRA
FIN
DNK
LUX
NOR
ITA
7.60
4.95
5.60
3.11
2.69
2.95
2.89
1.34
2.62
2.47
2.58
-1.46
-1.35
2.55
0.71
10.21
8.65
8.27
4.01
2.55
2.76
4.54
1.36
4.33
3.78
7.58
0.92
2.82
2.43
1.05
4.48
0.50
2.40
2.03
2.87
3.18
0.92
1.30
0.57
0.91
-3.42
-4.31
-6.56
2.69
0.32
Country
Code
Slovak
Republic
Estonia
Slovenia
Czech
Republic
Hungary
Sweden
Austria
Portugal
Spain
Germany
Australia
Netherlands
France
Finland
Denmark
Luxembourg
Norway
Italy
20012012
20012007
20072012
SVK
EST
SVN
1.08
3.97
1.62
2.22
8.26
2.53
-0.30
-1.17
0.54
CZE
HUN
SWE
AUT
PRT
ESP
DEU
AUS
NLD
FRA
FIN
DNK
LUX
NOR
ITA
2.01
1.28
2.35
1.29
1.13
0.89
0.56
1.90
1.23
1.03
1.06
1.88
0.85
2.04
-0.30
4.20
3.42
3.90
2.20
1.21
0.35
1.19
2.24
2.55
1.71
1.73
2.76
3.00
3.30
-0.12
-0.61
-1.29
0.51
0.19
1.04
1.53
-0.19
1.39
-0.34
0.22
0.26
0.82
-1.84
0.53
-0.51
Trade and repair; transport and storage;
accommodation, food
Information and communication
Code
Code
SVK
20012012
-0.18
20012007
0.17
20072012
-0.60
EST
SVN
CZE
3.41
2.25
2.02
6.92
3.70
4.69
-0.81
0.50
-1.17
HUN
SWE
AUT
PRT
ESP
DEU
AUS
NLD
FRA
FIN
DNK
LUX
NOR
ITA
1.43
1.74
0.66
0.78
0.98
1.24
1.88
1.68
0.49
1.30
1.45
-1.22
1.37
-0.46
4.52
3.30
1.53
0.09
-0.13
2.73
1.88
3.25
0.83
1.84
1.23
0.60
2.68
-0.39
-2.28
-0.14
-0.37
1.62
2.32
-0.55
1.88
-0.19
0.08
0.66
1.71
-3.50
-0.20
-0.55
Slovak
Republic
Estonia
Slovenia
Czech
Republic
Hungary
Sweden
Austria
Portugal
Spain
Germany
Australia
Netherlands
France
Finland
Denmark
Luxembourg
Norway
Italy
132
20012012
20012007
20072012
SVK
EST
SVN
4.13
4.70
1.82
5.68
9.67
3.30
2.28
-1.28
0.05
CZE
HUN
SWE
AUT
PRT
ESP
DEU
AUS
NLD
FRA
FIN
DNK
LUX
NOR
ITA
1.36
3.96
6.05
1.78
-0.61
1.44
3.07
3.24
2.30
3.02
3.56
6.94
3.63
5.82
1.76
4.09
5.64
7.76
3.96
1.35
1.60
1.21
3.46
5.03
5.20
4.68
8.16
0.61
7.80
2.83
-1.90
1.94
3.99
-0.83
-2.96
1.24
5.31
2.90
-0.99
0.39
2.23
5.47
7.41
3.46
0.47
Country
Slovak
Republic
Estonia
Slovenia
Czech
Republic
Hungary
Sweden
Austria
Portugal
Spain
Germany
Australia
Netherlands
France
Finland
Denmark
Luxembourg
Norway
Italy
Country
Slovak
Republic
Estonia
Slovenia
Czech
Republic
Hungary
Sweden
Austria
Portugal
Spain
Germany
Australia
Netherlands
France
Finland
Denmark
Luxembourg
Norway
Italy
Finance and insurance
Country
code
20012012
20012007
20072012
SVK
EST
SVN
6.07
6.06
4.43
12.24
16.29
7.20
-1.35
-6.22
1.10
CZE
HUN
SWE
AUT
PRT
ESP
DEU
AUS
NLD
FRA
FIN
DNK
LUX
NOR
ITA
2.46
-0.15
2.74
3.66
4.79
4.20
0.93
2.92
3.95
1.78
1.12
5.50
1.56
4.31
2.15
3.35
1.18
4.59
4.88
7.93
8.12
0.02
4.83
4.96
2.96
3.61
8.31
5.51
8.13
2.41
1.40
-1.74
0.52
2.19
1.02
-0.51
2.02
0.04
2.74
0.36
-1.87
2.13
-3.38
-0.27
1.84
Professional, scientific and support activities;
administrative and support activities
Country
Country
code
Slovak
Republic
Estonia
Slovenia
Czech
Republic
Hungary
Sweden
Austria
Portugal
Spain
Germany
Australia
Netherlands
France
Finland
Denmark
Luxembourg
Norway
Italy
20012012
20012007
20072012
SVK
EST
SVN
3.61
3.07
-1.15
6.99
8.05
-2.55
-0.44
-2.90
0.52
CZE
HUN
SWE
AUT
PRT
ESP
DEU
AUS
NLD
FRA
FIN
DNK
LUX
NOR
ITA
1.31
-1.85
1.88
1.41
-0.59
-1.12
-1.58
0.16
-0.82
0.76
-1.13
0.55
0.91
0.41
-2.37
2.38
-1.29
3.18
1.88
-0.48
-2.41
-0.93
-0.47
-0.47
1.13
-0.80
-2.00
2.82
-0.18
-2.20
0.03
-2.51
0.33
0.85
-0.72
0.42
-2.36
1.10
-1.24
0.32
-1.53
3.63
-1.48
1.12
-2.57
FIGURE 5: SOURCE DATA
Country
code
EST
SVK
CZE
SWE
SVN
HUN
PRT
ESP
AUT
DNK
FIN
AUS
NLD
DEU
FRA
LUX
NOR
ITA
Manufacturing
Construction
1.60
3.08
2.61
1.67
1.70
1.64
0.65
0.53
0.86
-0.14
0.92
0.21
0.48
0.99
0.49
-0.12
0.35
0.19
0.37
0.23
0.04
-0.05
0.01
-0.11
0.18
0.39
-0.06
0.03
0.04
0.09
-0.04
0.03
-0.23
-0.37
-0.22
-0.15
Mining and
utilities
0.20
0.46
-0.08
0.06
0.14
0.03
0.09
0.13
0.02
0.35
0.11
0.00
0.07
0.03
-0.01
-0.15
-0.87
0.00
Business sector services
excluding real estate
2.29
0.45
0.98
1.29
0.86
0.65
0.74
0.52
0.68
1.13
0.46
1.05
0.78
0.26
0.68
0.75
0.57
-0.19
133
Country
Estonia
Slovak Republic
Czech Republic
Sweden
Slovenia
Hungary
Portugal
Spain
Austria
Denmark
Finland
Australia
Netherlands
Germany
France
Luxembourg
Norway
Italy
Country
Slovak
Republic
Estonia
Slovenia
Czech
Republic
Hungary
Sweden
Austria
Portugal
Spain
Germany
Australia
Netherlands
France
Finland
Denmark
Luxembourg
Norway
Italy
FIGURE 6: SOURCE DATA
Turnover of affiliates abroad in the services sector, selected sample of OECD countries1
2002
2,539
Year
OECD (1)
2003
2,889
2004
3,371
2005
3,938
2006
4,309
2007
4,716
2008
5,067
2009
4,966
2010
4,795
1. Includes Austria, Belgium, Canada, Finland, Germany, Japan and the United States.
FIGURE 7: SOURCE DATA
Gross exports of goods and services
Year
Goods/Services
Goods
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
3,904
4,026
4,066
4,173
4,525
4,363
4,511
5,182
6,157
6,630
7,533
8,650
9,653
7,520
8,866
10,368
10,212
Services
Goods
1,027
100
1,062
103.1
1,114
104.1
1,136
106.9
1,199
115.9
1,194
111.7
1,278
115.5
1,469
132.7
1,758
157.7
1,935
169.8
2,145
192.9
2,538
221.5
2,817
247.2
2,545
192.6
2,709
227.1
3,018
265.6
3,021
261.6
Services
100
103.4
108.5
110.6
116.7
116.2
124.4
143.0
171.2
188.4
208.8
247.0
274.2
247.8
263.7
293.8
294.0
ABSOLUTE
VALUES
(BILLION USD)
INDEX 1996=100
134
FIGURE 8: SOURCE DATA
Country
code
JPN
ITA
AUS
NZL
CAN
MEX
CHL
FRA
POL
DEU
TUR
ESP
USA
NOR
SVK
CHE
GBR
CZE
SVN
NLD
KOR
BEL
EST
PRT
SWE
ISR
AUT
FIN
HUN
DNK
GRC
IRL
Direct
domestic
55994.1
52632.3
21325.5
3896.9
36311.0
10279.5
3923.6
83250.0
14995.4
129280.8
20531.1
64642.1
339965.4
20427.9
3322.7
40495.3
145762.7
9167.4
3207.6
49440.2
38271.5
41561.9
1773.8
12103.9
31878.6
12776.5
31815.4
15950.6
9462.4
22650.1
22242.6
39856.8
Indirect
domestic
163644.2
146739.7
46503.1
8045.0
73833.0
38384.7
9862.2
156402.7
35917.2
281921.7
30946.2
80392.4
327981.3
24036.8
10013.7
52786.5
134597.4
18123.3
4842.1
65848.5
59094.3
54114.2
2344.9
11697.8
33904.9
11381.7
27951.1
14869.7
11448.5
21535.6
12276.2
21828.9
Reimported
domestic
878.3
593.5
85.3
2.7
207.7
106.5
6.1
1255.1
105.8
5414.4
35.7
327.8
3543.6
77.6
30.6
398.8
804.0
88.2
3.7
421.8
644.4
389.0
2.8
23.9
208.5
11.4
184.5
38.4
31.5
102.7
21.0
138.6
Foreign
27003.5
39136.9
8798.9
2480.6
24791.7
21767.8
4580.7
58663.2
17781.9
139448.6
10597.5
28365.4
51360.0
10194.8
9754.5
28414.8
42034.8
16970.3
3830.1
49689.5
53239.5
42577.8
1892.6
8203.5
29041.5
9354.1
25015.5
15188.0
14683.8
25903.9
7159.5
59789.3
Country
Japan
Italy
Australia
New Zealand
Canada
Mexico
Chile
France
Poland
Germany
Turkey
Spain
United States
Norway
Slovak Republic
Switzerland
United Kingdom
Czech Republic
Slovenia
Netherlands
Korea
Belgium
Estonia
Portugal
Sweden
Israel
Austria
Finland
Hungary
Denmark
Greece
Ireland
FIGURE 9: SOURCE DATA
Country
code
MEX
CHN
JPN
RUS
ITA
DEU
BRA
ZAF
CAN
KOR
Gross Exports
6.15%
9.59%
15.30%
12.24%
19.02%
19.59%
15.32%
15.81%
16.13%
17.41%
Export Value-Added
Country
30.42%
29.46%
40.05%
31.61%
47.86%
47.96%
36.66%
37.32%
36.77%
37.70%
Mexico
China
Japan
Russian Federation
Italy
Germany
Brazil
South Africa
Canada
Korea
135
Country
code
FRA
AUS
NLD
ESP
USA
IND
SGP
GBR
Gross Exports
Export Value-Added
24.45%
20.84%
24.54%
38.03%
34.28%
37.14%
40.23%
43.36%
Country
51.30%
39.67%
45.52%
55.57%
49.57%
52.53%
56.53%
57.74%
France
Australia
Netherlands
Spain
United States
India
Singapore
United Kingdom
FIGURE 10: SOURCE DATA
Country
code
AUS
AUT
BEL
BGR
BRA
CAN
CHN
CYP
CZE
DNK
ESP
EST
FIN
FRA
GBR
DEU
GRC
HUN
IND
IRL
ITA
JPN
KOR
LTU
LUX
LVA
MEX
MLT
NLD
POL
PRT
ROU
RUS
SVK
SVN
SWE
TUR
TWN
dom_cons_imports_serv_gr_2000
GO_serv_gr_2000
0.09
0.08
0.07
0.14
0.14
0.08
0.37
0.08
0.13
0.18
0.13
0.12
0.13
0.08
0.12
0.08
0.11
0.13
0.17
0.14
0.08
0.01
0.14
0.21
0.15
0.16
0.07
0.12
0.09
0.14
0.08
0.19
0.15
0.17
0.16
0.08
0.19
0.03
0.07
0.04
0.04
0.13
0.12
0.05
0.15
0.07
0.07
0.05
0.08
0.10
0.05
0.04
0.06
0.02
0.07
0.09
0.13
0.09
0.04
0.00
0.08
0.09
0.10
0.14
0.09
0.08
0.05
0.08
0.05
0.26
0.26
0.08
0.09
0.05
0.28
0.03
136
dom_cons_imports_serv
45787.47
33271.63
54411.61
3349.17
32520.15
70872.03
187108.16
1765.35
20088.97
41744.65
71108.82
1612.29
26888.02
93601.29
172980.03
158718.50
18940.92
17621.36
17095.29
96398.83
87351.78
55755.53
62265.93
3174.18
49553.95
1749.66
11506.19
1409.45
121780.10
26805.96
12858.62
7104.67
16127.57
8884.16
3235.44
48550.20
9349.06
22463.40
Australia
Austria
Belgium
Bulgaria
Brazil
Canada
China
Cyprus
Czech Republic
Denmark
Spain
Estonia
Finland
France
United Kingdom
Germany
Greece
Hungary
India
Ireland
Italy
Japan
Korea
Lithuania
Luxembourg
Latvia
Mexico
Malta
Netherlands
Poland
Portugal
Romania
Russian Federation
Slovak Republic
Slovenia
Sweden
Turkey
Chinese Taipei
Country
code
USA
dom_cons_imports_serv_gr_2000
GO_serv_gr_2000
0.08
0.05
dom_cons_imports_serv
297204.06
United States
FIGURE 11: SOURCE DATA
Country
code
RUS
ISR
PRT
GBR
IRL
NOR
ISL
DNK
POL
FRA
TUR
NZL
ZAF
CAN
AUS
MEX
CHL
ESP
NLD
SVK
HUN
CZE
BEL
AUT
EST
USA
ITA
SVN
SWE
CHE
FIN
DEU
JPN
KOR
CHN
Services
81.48
70.12
61.88
61.49
60.23
59.56
53.91
48.89
46.20
46.04
45.04
44.59
44.57
44.07
43.07
39.81
39.20
37.88
37.11
36.33
35.06
34.13
33.32
31.60
30.98
28.04
27.06
26.15
24.21
21.02
20.90
13.83
10.74
8.85
6.42
Of which R&D services
77.84
40.82
2.46
33.81
12.51
17.17
20.21
12.74
10.37
13.41
14.69
4.27
#N/A
11.41
3.64
10.63
2.60
3.45
5.61
14.85
0.18
11.77
8.56
12.59
8.53
5.31
6.32
8.49
13.03
9.42
4.92
3.41
5.22
0.68
#N/A
Services, 2001
58.36
62.51
47.44
#N/A
32.18
#N/A
81.00
#N/A
#N/A
#N/A
13.31
59.81
25.27
31.76
47.59
43.64
#N/A
25.65
19.57
56.04
19.42
28.88
24.27
25.60
#N/A
28.14
22.12
5.74
21.56
21.25
18.94
9.37
11.44
12.69
6.56
137
Country
Russian Federation (2001, 2009)
Israel
Portugal (2001, 2010)
United Kingdom (2010)
Ireland
Norway
Iceland (2001, 2009)
Denmark (2010)
Poland
France (2010)
Turkey
New Zealand
South Africa (2001, 2009)
Canada
Australia (2001, 2010)
Mexico
Chile (2010)
Spain (2001, 2010)
Netherlands
Slovak Republic
Hungary
Czech Republic
Belgium (2001, 2009)
Austria (2001, 2009)
Estonia (2011)
United States (2004, 2010)
Italy (2001, 2010)
Slovenia (2003, 2011)
Sweden (2001, 2009)
Switzerland (2000, 2008)
Finland
Germany
Japan
Korea
China (2000, 2011)
FIGURE 12: SOURCE DATA
MANUFACTURING
Country
code
DEU
CAN
ZAF
ISR
BRA
AUS
BEL
IRL
LUX
SWE
FIN
EST
AUT
NLD
ITA
DNK
PRT
FRA
ISL
CZE
TUR
JPN
NZL
GBR
NOR
ESP
KOR
SVK
CHL
HUN
POL
RUS
Product or
process
innovation only
19.8
16.9
19.6
8.0
7.1
14.6
22.0
19.1
12.8
19.7
20.0
24.3
15.6
22.5
15.2
14.2
13.5
12.9
17.3
11.1
8.4
10.4
14.3
11.5
15.6
15.5
21.2
8.4
8.2
7.8
8.0
5.1
Product or process &
marketing or
organisational
innovation
52.0
53.1
49.5
45.4
31.1
43.7
36.7
39.5
40.7
32.3
33.7
28.8
34.8
30.9
31.1
33.5
30.4
27.7
33.2
28.0
27.9
23.0
23.1
26.9
23.7
18.2
16.0
22.9
16.3
11.0
10.1
6.1
Marketing or
organisational
innovation only
11.2
11.1
8.7
23.9
37.1
12.0
9.2
8.5
12.2
9.2
7.4
7.9
10.3
6.8
13.0
10.1
12.2
15.5
5.0
14.8
16.0
17.0
12.3
9.8
7.6
10.2
1.1
5.3
6.4
11.6
10.4
2.1
Country
sum
83.0
81.1
77.8
77.3
75.2
70.3
67.9
67.1
65.7
61.1
61.0
61.0
60.6
60.2
59.2
57.8
56.1
56.1
55.5
54.0
52.2
50.4
49.7
48.2
47.0
43.9
38.3
36.6
30.9
30.4
28.5
13.3
Germany
Canada (2007-09)
South Africa (2005-07)
Israel (2006-08)
Brazil
Australia (2011)
Belgium
Ireland
Luxembourg
Sweden
Finland
Estonia
Austria
Netherlands
Italy
Denmark
Portugal
France
Iceland
Czech Republic
Turkey
Japan (2009-10)
New Zealand (2009-10)
United Kingdom
Norway
Spain
Korea (2005-07)
Slovak Republic
Chile (2009-10)
Hungary
Poland
Russian Federation (2009-11)
SERVICES
Country
code
BRA
DEU
ISL
ISR
CAN
ZAF
LUX
PRT
Product or process
innovation only
7.8
15.5
17.6
3.6
11.0
17.7
7.0
10.7
Product or process and
marketing or
organisational innovation
38.7
42.5
49.2
39.2
39.5
43.6
42.2
39.6
138
Marketing or
organisational
innovation only
34.0
18.7
8.2
31.5
22.0
8.2
19.5
16.5
sum
80.5
76.7
75.0
74.2
72.5
69.5
68.6
66.8
Country
Brazil (2006-08)
Germany
Iceland
Israel (2006-08)
Canada (2007-09)
South Africa (2005-07)
Luxembourg
Portugal
Country
code
AUS
SWE
BEL
IRL
NLD
FIN
AUT
EST
DNK
ITA
FRA
CZE
NZL
JPN
SVN
NOR
GBR
ESP
SVK
HUN
POL
CHL
RUS
Product or process
innovation only
11.6
14.5
14.8
10.2
16.6
12.6
9.7
16.1
8.1
8.2
6.5
6.8
15.6
9.5
5.8
12.8
6.6
10.1
4.0
6.9
5.0
5.2
2.8
Product or process and
marketing or
organisational innovation
46.3
32.3
31.9
31.0
27.0
28.7
29.2
24.4
31.0
22.6
22.5
22.7
18.5
14.6
21.6
18.5
21.9
14.5
21.4
10.6
8.5
9.7
4.4
Marketing or
organisational
innovation only
7.3
12.3
9.3
14.7
11.1
12.2
14.5
12.9
12.8
21.0
22.5
19.9
13.8
23.5
18.7
10.9
12.6
14.3
9.9
14.0
14.5
5.4
2.0
sum
65.2
59.1
55.9
55.9
54.6
53.5
53.4
53.4
51.9
51.8
51.5
49.4
47.9
47.7
46.1
42.1
41.1
39.0
35.2
31.4
28.0
20.3
9.2
Country
Australia (2011)
Sweden
Belgium
Ireland
Netherlands
Finland
Austria
Estonia
Denmark
Italy
France
Czech Republic
New Zealand (2009-10)
Japan (2009-10)
Slovenia (2006-08)
Norway
United Kingdom
Spain
Slovak Republic
Hungary
Poland
Chile (2009-10)
Russian Federation (2009-11)
FIGURE 13: SOURCE DATA
Country
code
DEU
EST
BEL
PRT
IRL
AUT
CZE
AUS
ITA
SWE
FIN
FRA
SVN
NLD
NOR
ESP
SVK
HUN
High-tech
manufacturing
74
75
73.3
70
72
78.7
64
56.7
65
69
63
66
65
61
59
59
43
38
Other
manufacturing
68
64
57.9
51
59
53.3
52
54.2
52
50
51
49
49
48
40
39
36
27
Knowledge-intensive
services
72
64
68.1
78
60
65
62
54.4
58
61
57
56
60
53
50
57
47
44
139
Other services
Country
53
52
49.6
60
49
47.7
53
51.7
44
43
39
43
37
40
37
36
31
25
Germany
Estonia
Belgium
Portugal
Ireland
Austria
Czech Republic
Australia
Italy
Sweden
Finland
France
Slovenia
Netherlands
Norway
Spain
Slovak Republic
Hungary
FIGURE 14: SOURCE DATA
Country
code
ZAF
JPN
HUN
CHL
DNK
SWE
POL
AUT
EST
SVN
NLD
BEL
CZE
FIN
TUR
PRT
NOR
ITA
SVK
ISR
Goods innovation
47.0
51.6
37.4
34.4
41.1
31.8
27.8
27.3
37.8
31.7
30.4
34.4
27.7
24.0
12.4
27.4
32.1
18.5
34.0
10.7
Services innovation
61.5
50.8
49.2
45.6
45.5
38.0
37.6
35.8
35.3
34.9
32.0
31.8
31.5
31.2
29.4
29.1
28.3
24.6
20.7
13.5
Country
South Africa (2005-07)
Japan (2009-10)
Hungary
Chile (2009-10)
Luxembourg
Sweden
Poland
Austria
Estonia
Slovenia
Netherlands
Belgium
Czech Republic
Finland
Turkey
Portugal
Norway
Italy
Slovak Republic
Israel (2006-08)
FIGURE 15: SOURCE DATA
Manufacturing
Other enterprises within group
Suppliers of equipment, materials, components, or software
Clients or customers
Competitors or other enterprises in sector
Consultants, commercial labs, or private R&D institutes
Universities or other higher education institutions
Government or public research institutes
9
16
13
7
10
10
6
140
Services
12
19
15
10
11
10
7
FIGURE 16: SOURCE DATA
Patent
Sector Category
High-tech manufacturing
Other manufacturing
Knowledge-intensive services
Other services
Design
7
3
4
1
Trademark
5
3
3
2
FIGURE 17: SOURCE DATA
Country
code
FRA
NLD
FIN
LUX
HUN
ITA
TUR
ESP
EST
BEL
JPN
CZE
DEU
PRT
POL
BRA
SVK
CHL
CHE
ISR
AUS
RUS
Manufacturing
53.3
47.3
44.5
40.1
37.3
32.3
32.2
29.0
28.8
28.3
26.5
26.5
26.3
25.1
22.2
21.3
19.6
15.7
13.9
13.8
8.8
7.3
Services
37.9
24.9
25.6
9.8
31.5
21.0
21.8
24.2
17.4
17.3
23.6
19.2
16.2
22.4
14.7
15.6
9.5
6.0
1.9
3.6
5.8
23.4
Country
France
Netherlands
Finland
Luxembourg
Hungary
Italy
Turkey
Spain
Estonia
Belgium
Japan (2009-10)
Czech Republic
Germany
Portugal
Poland
Brazil (2006-08)
Slovak Republic
Chile (2009-10)
Switzerland (2009-11)
Israel (2006-08)
Australia (2011)
Russian Federation (2009-11)
141
10
9
15
10
Copyright
2
1
5
1
FIGURE 18: SOURCE DATA
Services
Code
ITA
ESP
NZL
HUN
NLD
FIN
PRT
SWE
FRA
BRA
LUX
AUT
JPN
BEL
NOR
USA
Micro Small Medium
(1-9) (10-49) (50-249)
0.94
0.06
0.01
0.92
0.07
0.01
0.89
0.09
0.01
0.89
0.10
0.01
0.88
0.10
0.02
0.87
0.11
0.02
0.86
0.12
0.02
0.86
0.12
0.02
0.85
0.13
0.02
0.83
0.14
0.02
0.83
0.14
0.02
0.82
0.15
0.03
0.80
0.18
0.02
0.78
0.18
0.03
0.77
0.20
0.03
0.75
0.21
0.03
Manufacturing
Large
(250+)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.01
0.00
0.01
0.01
0.01
Country
Code
Italy
Spain
New Zealand
Hungary
Netherlands
Finland
Portugal
Sweden
France
Brazil
Luxembourg
Austria
Japan
Belgium
Norway
United States
NZL
ITA
ESP
FIN
HUN
SWE
NLD
PRT
JPN
BRA
AUT
FRA
NOR
BEL
LUX
USA
Micro Small Medium
(1-9) (10-49) (50-249)
0.79
0.18
0.03
0.78
0.19
0.03
0.74
0.22
0.04
0.71
0.21
0.06
0.71
0.21
0.06
0.70
0.22
0.06
0.70
0.22
0.06
0.68
0.26
0.05
0.68
0.26
0.06
0.66
0.27
0.05
0.66
0.24
0.08
0.63
0.28
0.07
0.59
0.31
0.08
0.59
0.30
0.09
0.59
0.29
0.10
0.57
0.32
0.09
Large
(250+)
0.01
0.00
0.01
0.02
0.02
0.02
0.01
0.01
0.01
0.01
0.02
0.02
0.02
0.02
0.03
0.02
Country
New Zealand
Italy
Spain
Finland
Hungary
Sweden
Netherlands
Portugal
Japan
Brazil
Austria
France
Norway
Belgium
Luxembourg
United States
FIGURE 19: SOURCE DATA
Services
Firms
0.07
0.14
0.18
0.22
0.40
Firm Age Class
Firm births
Startups (1-2)
Young (3-5)
Mature (5-10)
Old (10+)
Manufacturing
Employment
0.02
0.08
0.14
0.20
0.56
Firms
0.04
0.09
0.13
0.19
0.56
Firm Age Class
Firm births
Startups (1-2)
Young (3-5)
Mature (5-10)
Old (10+)
Employment
0.01
0.05
0.09
0.14
0.72
FIGURE 20: SOURCE DATA
Country
code
BRA
FRA
ESP
HUN
NLD
PRT
LUX
AUT
USA
NZL
Services (size
of startups)
5.33
7.11
2.40
3.62
6.03
3.60
3.05
8.06
6.80
3.14
Services (share
of startups)
0.39
0.28
0.26
0.24
0.22
0.22
0.21
0.21
0.20
0.20
Manufacturing
(size of startups)
Manufacturing
(share of startups)
Country
Manufacturing
Share (x-axis
label position)
11.80
23.73
4.57
7.51
15.99
6.18
4.27
12.57
9.94
5.13
0.34
0.14
0.15
0.17
0.15
0.13
0.12
0.11
0.13
0.15
1.15
2.15
3.15
4.15
5.15
6.15
7.15
8.15
9.15
10.15
142
Country
Services
Share
(x-axis
label
position)
0.85
1.85
2.85
3.85
4.85
5.85
6.85
7.85
8.85
9.85
Country
Brazil
France
Spain
Hungary
Netherlands
Portugal
Luxembourg
Austria
United States
New Zealand
Country
code
Services (size
of startups)
SWE
BEL
NOR
ITA
JPN
FIN
Services (share
of startups)
4.77
4.85
8.46
3.24
3.01
5.05
Manufacturing
(size of startups)
Manufacturing
(share of startups)
Country
Manufacturing
Share (x-axis
label position)
10.01
10.11
15.23
5.85
4.04
17.93
0.11
0.09
0.09
0.10
0.04
0.06
11.15
12.15
13.15
14.15
15.15
16.15
0.19
0.17
0.14
0.12
0.11
0.09
Country
Services
Share
(x-axis
label
position)
10.85
11.85
12.85
13.85
14.85
15.85
FIGURE 21: SOURCE DATA
Country
Code
BEL
HUN
LUX
ITA
BRA
PRT
FIN
NZL
ESP
SWE
NLD
FRA
NOR
USA
AUT
Services
Services
Services
(young, up to
(old, >5)
5)
0.13
0.00
0.11
-0.01
0.11
0.02
0.10
0.01
0.09
0.02
0.09
0.00
0.09
0.01
0.07
0.00
0.06
0.00
0.04
0.00
0.04
-0.01
0.03
0.01
0.03
0.00
0.02
0.00
0.02
-0.01
Manufacturing
Manufacturing
(young, up to 5)
Manufacturing
(old, >5)
0.07
0.10
0.13
0.07
0.09
0.07
0.02
0.08
0.02
0.01
-0.01
-0.01
0.02
0.01
0.03
-0.02
-0.02
0.00
-0.02
0.02
-0.02
-0.02
-0.02
-0.03
-0.01
-0.02
-0.02
-0.02
-0.03
-0.01
Services
x-axis
label
position
0.82
1.82
2.82
3.82
4.82
5.82
6.82
7.82
8.82
9.82
10.82
11.82
12.82
13.82
14.82
Manufacturing
Country
x-axis label
position
1.24
2.24
3.24
4.24
5.24
6.24
7.24
8.24
9.24
10.24
11.24
12.24
13.24
14.24
15.24
Name
Belgium
Hungary
Luxembourg
Italy
Brazil
Portugal
Finland
New Zealand
Spain
Sweden
Netherlands
France
Norway
United States
Austria
FIGURE 22: SOURCE DATA
Sector
Size
Small (1-249)
Services
Large (250+)
Small (1-249)
Manufacturing
Large (250+)
Age
Young (1-5)
Old (>5)
Young (1-5)
Old (>5)
Young (1-5)
Old (>5)
Young (1-5)
Old (>5)
Contribution to
employment
0.20
0.46
0.06
0.28
0.11
0.46
0.06
0.38
143
Contribution to
job destruction
0.24
0.52
0.04
0.19
0.13
0.54
0.04
0.29
Contribution to
job creation
0.44
0.32
0.09
0.16
0.31
0.37
0.10
0.21
Country
Sweden
Belgium
Norway
Italy
Japan
Finland
FIGURE 23: SOURCE DATA
Services
Country code
BRA
ESP
NLD
HUN
FRA
PRT
NZL
NOR
SWE
AUT
LUX
ITA
BEL
USA
FIN
Age class
Young (1-5)
Old (>5)
Young (1-5)
Old (>5)
Young (1-5)
Old (>5)
Young (1-5)
Old (>5)
Young (1-5)
Old (>5)
Young (1-5)
Old (>5)
Young (1-5)
Old (>5)
Young (1-5)
Old (>5)
Young (1-5)
Old (>5)
Young (1-5)
Old (>5)
Young (1-5)
Old (>5)
Young (1-5)
Old (>5)
Young (1-5)
Old (>5)
Young (1-5)
Old (>5)
Young (1-5)
Old (>5)
Entrant
0.09
0.06
0.06
0.03
0.04
0.03
0.03
0.03
0.03
0.03
0.02
0.02
0.02
0.02
0.01
Exit
-0.02
-0.02
-0.03
-0.03
-0.03
-0.05
-0.01
-0.02
-0.01
-0.03
-0.01
-0.02
-0.01
-0.02
-0.01
-0.03
-0.01
-0.02
-0.01
-0.01
0.00
-0.01
-0.01
-0.02
0.00
-0.01
-0.01
-0.03
-0.01
-0.03
Manufacturing
Incumbent
0.04
0.01
0.01
0.00
0.01
-0.01
0.02
0.00
0.01
0.01
0.02
0.00
0.02
0.00
0.01
0.00
0.01
0.00
0.00
0.00
0.01
0.01
0.02
0.00
0.02
0.00
0.00
0.00
0.01
0.01
Country
Country code
Brazil
BRA
Spain
NLD
Netherlands
ESP
Hungary
NZL
France
HUN
Portugal
AUT
New Zealand
PRT
Norway
JPN
Sweden
FRA
Austria
ITA
Luxembourg
NOR
Italy
SWE
Belgium
BEL
United States
USA
Finland
FIN
LUX
144
Age class
Young (1-5)
Old (>5)
Young (1-5)
Old (>5)
Young (1-5)
Old (>5)
Young (1-5)
Old (>5)
Young (1-5)
Old (>5)
Young (1-5)
Old (>5)
Young (1-5)
Old (>5)
Young (1-5)
Old (>5)
Young (1-5)
Old (>5)
Young (1-5)
Old (>5)
Young (1-5)
Old (>5)
Young (1-5)
Old (>5)
Young (1-5)
Old (>5)
Young (1-5)
Old (>5)
Young (1-5)
Old (>5)
Young (1-5)
Entrant
0.07
N/A
0.04
N/A
0.02
N/A
0.01
N/A
0.01
N/A
0.02
N/A
0.02
N/A
0.02
N/A
0.02
N/A
0.01
0.02
0.01
0.01
0.01
0.01
0.00
Exit
-0.02
-0.02
-0.02
-0.04
-0.01
-0.03
0.00
-0.01
-0.01
-0.02
0.00
-0.02
0.00
-0.02
0.00
-0.03
0.00
-0.03
-0.01
-0.02
-0.01
-0.03
0.00
-0.02
0.00
-0.01
0.00
-0.03
0.00
-0.03
0.00
Incumbent
0.04
0.01
0.00
-0.01
0.00
-0.02
0.01
-0.02
0.01
-0.02
0.00
-0.01
0.01
-0.02
0.00
-0.01
0.00
-0.01
0.01
-0.02
0.00
-0.02
0.00
-0.01
0.00
-0.02
0.00
-0.02
0.00
-0.02
0.00
Country
Brazil
Netherlands
Spain
New Zealand
Hungary
Austria
Portugal
Japan
France
Italy
Norway
Sweden
Belgium
United States
Finland
Luxembourg
Country code
Age class
Old (>5)
Entrant
Exit
0.00
Incumbent
0.00
Country
145
FIGURE 24: SOURCE DATA
By young (0-5)
Net job creation by young
By old (>5)
Net job creation by old
Total
Net growth rate
Manufacturing
/Services
year
Manufacturing
2001-02
0.016615
-0.03457
-0.01795
Manufacturing
2002-03
0.023205
-0.02787
-0.00467
Manufacturing
2003-04
0.022267
-0.03082
-0.00855
Manufacturing
2004-05
0.019599
-0.03163
-0.01203
Manufacturing
2005-06
0.028778
-0.0302
-0.00142
Manufacturing
2006-07
0.025004
-0.02534
-0.00033
Manufacturing
2007-08
0.019216
-0.02698
-0.00776
Manufacturing
2008-09
0.008627
-0.07204
-0.06341
Manufacturing
2009-10
0.01778
-0.05194
-0.03416
Manufacturing
2010-11
0.013705
-0.02316
-0.00945
Services
2001-02
0.034049
-0.01985
0.014202
Services
2002-03
0.035746
-0.01969
0.016056
Services
2003-04
0.038936
-0.02212
0.016816
Services
2004-05
0.040754
-0.02062
0.020132
Services
2005-06
0.043429
-0.01764
0.025785
Services
2006-07
0.046946
-0.01185
0.0351
Services
2007-08
0.040413
-0.01834
0.022075
Services
2008-09
0.018389
-0.04957
-0.03118
Services
2009-10
0.029825
-0.03621
-0.00639
Services
2010-11
0.023871
-0.02065
0.003222
FIGURE 25: SOURCE DATA
Country
code
ARG
AUS
AUT
BEL
BGR
BRA
BRN
CAN
CHE
CHL
CHN
CZE
DEU
DNK
ESP
EST
FIN
FRA
GBR
1995
25.3
29.2
31.1
31.2
29.9
26.0
26.2
23.9
30.6
26.1
20.7
27.6
29.4
27.8
29.4
28.2
29.2
30.9
27.0
2000
27.2
29.5
29.8
32.5
28.1
34.1
22.3
24.9
32.3
29.3
21.6
29.5
31.2
29.2
31.0
30.6
29.9
32.1
30.2
2005
21.8
30.4
30.2
32.5
28.0
25.1
20.9
26.8
32.6
28.6
22.1
30.0
31.6
30.7
31.7
30.8
30.1
34.1
30.1
2009
24.1
31.8
32.4
34.0
32.1
29.6
22.3
29.5
35.1
29.9
24.2
30.8
34.7
31.9
34.2
31.7
31.4
35.0
31.3
146
Country
Argentina
Australia
Austria
Belgium
Bulgaria
Brazil
Brunei
Canada
Switzerland
Chile
China
Czech Republic
Germany
Denmark
Spain
Estonia
Finland
France
United Kingdom
Country
code
GRC
HKG
HUN
IDN
IND
IRL
ISL
ISR
ITA
JPN
KHM
KOR
LTU
LUX
LVA
MEX
MLT
MYS
NLD
NOR
NZL
PHL
POL
PRT
ROU
ROW
RUS
SAU
SGP
SVK
SVN
SWE
THA
TUR
USA
VNM
ZAF
1995
26.7
27.6
27.0
20.0
29.0
27.0
26.3
30.3
29.8
28.3
29.3
23.5
29.0
29.0
27.4
24.3
26.5
28.4
28.8
28.2
27.9
17.2
26.2
28.3
24.3
26.3
26.9
26.7
28.7
28.2
28.3
28.2
23.5
24.3
22.1
28.8
27.6
2000
2005
26.9
30.5
30.5
22.4
31.7
31.2
29.2
28.9
32.3
27.0
31.2
25.6
28.0
33.1
33.0
24.5
27.8
28.4
30.6
30.4
27.6
24.3
30.1
30.1
24.3
29.5
28.4
28.0
29.7
30.0
30.0
30.6
24.5
30.1
25.7
29.5
26.7
29.9
28.6
31.6
20.9
33.4
32.6
30.6
31.0
33.5
28.4
31.1
22.9
31.6
33.9
33.6
26.5
31.2
28.0
30.9
29.5
30.1
24.5
31.3
31.2
25.7
28.3
27.6
28.8
29.0
30.2
30.3
31.7
24.1
28.6
26.4
28.6
30.2
2009
Country
32.3
29.9
33.2
18.6
32.8
32.1
31.4
30.2
35.8
28.7
27.0
27.7
31.5
36.1
35.1
27.1
32.0
30.0
32.5
31.3
30.4
23.4
32.2
32.1
26.8
28.4
29.2
29.7
30.8
31.2
32.7
32.3
20.8
29.9
27.8
26.4
31.0
Greece
Hong Kong (China)
Hungary
Indonesia
India
Ireland
Iceland
Israel
Italy
Japan
Cambodge
Korea
Lithuania
Luxembourg
Latvia
Mexico
Malta
Malaysia
Netherlands
Norway
New Zealand
Philippines
Poland
Portugal
Romania
Rest of the world
Russian Federation
Saudi Arabia
Singapore
Slovak Republic
Slovenia
Sweden
Thailand
Turkey
United States
Vietnam
South Africa
FIGURE 26: SOURCE DATA
Country
code
ISL
FRA
ITA
DEU
BEL
FIN
ESP
IRL
Wholesale,
retail, hotels &
rest.
22.0
8.5
11.5
8.0
13.2
7.1
12.3
10.6
Transport,
storage &
telecom.
4.7
4.8
6.2
5.4
5.8
6.5
6.0
3.3
Finance &
insurance
Business
services
Other
services
2.4
3.0
3.5
2.3
2.5
2.1
3.7
3.3
9.1
17.9
12.8
17.0
12.2
16.6
9.9
15.6
1.4
4.0
4.1
4.1
3.1
4.0
3.9
2.5
147
2009
total
39.6
38.3
38.1
36.9
36.7
36.3
35.7
35.4
1995
total
34.0
31.5
31.7
29.2
32.5
24.5
28.2
33.0
Country
Iceland
France
Italy
Germany
Belgium
Finland
Spain
Ireland
Country
code
IND
LUX
SWE
POL
CHE
EST
NLD
SVK
AUT
TUR
GRC
NZL
AUS
PRT
ISR
CHL
SVN
JPN
NOR
GBR
DNK
CZE
ZAF
CAN
BRA
RUS
MEX
HUN
KOR
USA
CHN
IDN
Wholesale,
retail, hotels &
rest.
14.7
9.6
8.1
14.9
8.6
12.0
8.6
12.8
8.3
13.1
14.5
8.2
7.9
9.1
9.0
6.5
11.6
9.2
8.5
10.2
11.7
11.7
9.1
10.9
13.6
14.6
11.1
8.8
7.9
5.1
7.3
7.3
Transport,
storage &
telecom.
Finance &
insurance
Business
services
Other
services
6.8
2.3
2.1
1.8
4.7
1.9
3.2
1.8
2.5
3.2
3.8
4.0
3.2
3.6
5.5
4.5
2.3
4.2
3.8
3.1
2.3
2.1
4.2
2.9
3.2
1.3
4.0
2.3
3.3
2.9
4.4
1.5
3.6
14.9
14.2
8.7
11.4
9.6
13.8
9.9
12.2
6.3
7.6
11.1
12.1
10.2
11.5
10.9
9.3
8.4
9.8
10.3
9.4
8.4
7.6
9.0
5.0
4.6
8.8
10.5
10.3
12.8
7.4
2.9
2.6
3.5
3.9
3.6
3.4
2.4
3.4
3.2
4.1
1.2
2.4
2.7
2.4
3.9
2.0
2.1
3.0
2.3
3.8
2.3
2.5
3.1
2.9
3.0
2.2
2.2
1.1
2.7
1.5
1.9
1.9
2.0
7.6
4.2
6.2
5.1
5.5
6.9
3.7
5.1
5.5
8.7
3.9
6.3
6.6
5.3
4.0
7.7
4.9
6.9
5.0
4.6
4.3
4.8
6.3
4.1
5.4
6.6
4.3
4.3
5.1
3.5
4.2
4.2
FIGURE 27: SOURCE DATA
Country
code
FRA
CHE
NLD
GBR
LUX
DEU
BEL
USA
DNK
AUT
FIN
NOR
IRL
2012
52.8
52.7
52.2
51.7
51.7
50.1
50.0
48.4
47.9
45.8
45.8
44.4
44.1
2002
37.8
#N/A
47.7
45.3
37.3
42.6
42.6
#N/A
40.3
34.9
40.4
39.7
39.7
Country
France
Switzerland
Netherlands
United Kingdom
Luxembourg
Germany
Belgium
United States
Denmark
Austria
Finland
Norway
Ireland
148
2009
total
35.3
34.5
34.4
34.1
33.7
32.8
32.8
32.7
32.6
32.4
32.2
32.2
32.2
32.1
31.9
31.7
31.2
31.1
30.9
30.6
30.2
30.2
30.0
29.8
29.5
29.4
29.3
28.7
28.2
26.3
25.2
17.9
1995
total
29.7
27.5
30.7
25.6
32.7
28.7
29.7
25.3
28.3
24.1
21.9
28.4
30.1
27.6
40.7
27.7
28.0
30.9
28.4
26.4
27.1
26.5
26.7
25.0
26.1
28.6
25.8
26.4
24.6
20.1
20.5
21.7
Country
India
Luxembourg
Sweden
Poland
Switzerland
Estonia
Netherlands
Slovak Republic
Austria
Turkey
Greece
New Zealand
Australia
Portugal
Israel
Chile
Slovenia
Japan
Norway
United Kingdom
Denmark
Czech Republic
South Africa
Canada
Brazil
Russian Fed.
Mexico
Hungary
Korea
United States
China
Indonesia
Country
code
SWE
EU28
ESP
ITA
SVN
ISL
CZE
GRC
POL
EST
SVK
PRT
HUN
TUR
2012
42.0
41.6
38.2
37.7
36.7
36.6
32.7
31.2
30.6
28.8
27.3
27.1
25.0
22.9
2002
39.9
#N/A
28.5
34.9
34.5
27.7
29.7
25.1
#N/A
22.9
25.8
21.9
24.9
#N/A
Country
Sweden
EU28
Spain
Italy
Slovenia
Iceland
Czech Republic
Greece
Poland
Estonia
Slovak Republic
Portugal
Hungary
Turkey
FIGURE 28: SOURCE DATA
Country
code
DNK
NOR
JPN
HUN
SVK
AUS
NLD
CHL
ESP
AUT
BEL
SVN
SWE
FRA
ISR
FIN
CZE
ITA
TUR
ZAF
USA
PRT
EST
GBR
Manufacturing
Product
innovators
innovating in
goods only
Manufacturing
Product
innovators
innovating in
services only
Manufacturing
Product
innovators
innovating in
goods and
services
76.0
89.7
71.2
76.7
78.3
70.1
69.7
58.8
69.5
72.2
66.4
#N/A
65.9
64.1
65.9
65.7
68.2
59.8
42.5
39.5
56.4
53.7
78.6
19.0
3.2
5.5
8.6
5.7
2.2
14.0
8.9
7.8
8.3
3.8
4.9
#N/A
9.7
7.7
11.7
7.6
6.8
7.9
7.1
17.5
13.1
11.2
8.8
8.3
20.9
4.8
20.2
17.5
19.5
15.9
21.5
33.4
22.2
24.1
28.6
#N/A
24.4
28.2
22.4
26.7
25.0
32.3
50.5
43.0
30.6
35.1
12.6
72.7
149
Services
Product
innovators
innovating
in goods
only
58.2
49.3
46.3
44.6
38.3
36.5
35.1
34.5
32.8
32.0
30.5
29.4
29.2
27.7
26.4
25.6
24.8
24.4
23.1
21.7
20.8
20.2
15.3
9.1
Services
Product
innovators
innovating
in services
only
17.3
41.8
29.2
25.1
40.9
44.8
40.2
33.5
35.1
32.4
38.9
40.8
40.2
35.0
42.7
45.2
42.6
30.0
29.3
37.5
46.8
37.6
59.1
27.2
Services
Product
innovators
innovating
in goods
and
services
24.5
8.9
24.6
30.3
20.8
18.7
24.8
32.0
32.1
35.6
30.6
29.9
30.5
37.3
30.9
29.2
32.6
45.5
47.6
40.8
32.4
42.2
25.6
63.7
Country
Denmark
Norway
Japan (2009-10)
Hungary
Slovak Republic
Australia (2010-11)
Netherlands
Chile (2009-10)
Spain
Austria
Belgium
Slovenia
Sweden
France
Israel (2006-08)
Finland
Czech Republic
Italy
Turkey
South Africa (2005-07)
United States
Portugal
Estonia
United Kingdom
FIGURE 29: SOURCE DATA
GVC PARTICIPATION: WHOLESALE AND RETAIL, HOTELS AND RESTAURANTS
Country
code
HKG
MLT
SGP
PHL
GRC
RUS
CHN
LVA
KHM
MYS
AUT
BGR
BEL
CHE
SWE
IRL
NLD
JPN
VNM
POL
FRA
BRA
NZL
HUN
ITA
IND
SVK
CZE
ISR
ROU
USA
NOR
THA
DEU
PRT
TUR
LTU
EST
KOR
CHL
LUX
FIN
SVN
ESP
DNK
CHN
MEX
Backward participation
9.5
6.1
4.3
1.1
1.6
0.3
0.7
1.0
4.2
1.1
1.4
2.5
1.4
1.1
1.7
2.6
1.2
0.2
1.9
0.3
0.7
0.2
1.4
1.3
0.3
0.8
0.5
0.4
1.0
0.7
0.2
0.8
0.6
0.6
0.8
0.4
0.7
0.4
0.7
0.8
1.2
0.8
0.4
0.2
0.5
0.3
0.3
Forward participation
10.4
2.4
3.5
4.8
4.2
5.2
4.6
4.2
0.9
3.7
3.3
2.1
3.1
3.3
2.8
1.6
2.7
3.7
1.7
3.2
2.7
3.1
1.9
1.8
2.8
2.3
2.5
2.6
2.0
2.2
2.7
2.1
2.3
2.2
1.8
2.3
1.9
2.2
1.9
1.7
1.3
1.6
1.9
2.0
1.6
1.8
1.8
150
Total participation
19.9
8.5
7.9
6.0
5.7
5.5
5.4
5.2
5.1
4.8
4.7
4.6
4.5
4.4
4.4
4.1
3.9
3.9
3.6
3.5
3.4
3.3
3.3
3.1
3.1
3.1
3.1
3.0
3.0
2.9
2.9
2.9
2.9
2.8
2.7
2.7
2.6
2.6
2.5
2.5
2.5
2.4
2.3
2.2
2.1
2.1
2.1
Country
Hong Kong, China
Malta
Singapore
Philippines
Greece
Russian Federation
Chinese Taipei
Latvia
Cambodia
Malaysia
Austria
Bulgaria
Belgium
Switzerland
Sweden
Ireland
Netherlands
Japan
Viet Nam
Poland
France
Brazil
New Zealand
Hungary
Italy
India
Slovak Republic
Czech Republic
Israel
Romania
United States
Norway
Thailand
Germany
Portugal
Turkey
Lithuania
Estonia
Korea
Chile
Luxembourg
Finland
Slovenia
Spain
Denmark
China
Mexico
Country
code
GBR
AUS
CAN
ARG
ZAF
IDN
BRN
ISL
SAU
Backward participation
Forward participation
0.3
0.3
0.3
0.1
0.6
0.2
0.5
0.5
0.3
1.6
1.6
1.5
1.6
1.0
1.3
0.9
0.8
0.5
Total participation
1.9
1.8
1.8
1.7
1.6
1.5
1.4
1.3
0.9
Country
United Kingdom
Australia
Canada
Argentina
South Africa
Indonesia
Brunei
Iceland
Saudi Arabia
GVC PARTICIPATION: TRANSPORT, STORAGE AND COMMUNICATIONS
Country
code
DNK
GRC
HKG
EST
SGP
MLT
LVA
PRT
FIN
CHL
BEL
ESP
NOR
SVN
BGR
KOR
ARG
ISR
JPN
LTU
AUS
TUR
ROU
SWE
LUX
MYS
AUT
NZL
RUS
THA
ISL
CZE
NLD
POL
FRA
KHM
ITA
Backward participation
Forward participation
16.2
11.0
7.8
6.4
7.7
6.7
2.9
4.0
2.1
3.3
3.3
2.3
2.5
2.9
3.0
3.0
1.2
2.7
0.6
1.5
1.1
0.9
1.2
1.9
2.1
2.3
1.5
2.0
0.5
2.1
1.9
1.1
1.7
1.3
0.8
2.5
0.7
3.8
6.9
3.3
3.6
2.1
2.4
5.5
4.3
3.6
2.3
2.3
3.0
2.7
2.3
2.1
1.9
3.7
1.8
3.7
2.6
3.0
3.2
2.8
1.9
1.6
1.3
2.1
1.6
3.1
1.5
1.7
2.3
1.6
2.0
2.1
0.4
2.1
151
Total participation
20.0
17.9
11.1
10.0
9.8
9.1
8.4
8.2
5.7
5.6
5.5
5.4
5.2
5.1
5.1
4.9
4.8
4.5
4.3
4.1
4.1
4.0
4.0
3.9
3.7
3.7
3.6
3.6
3.5
3.5
3.5
3.4
3.4
3.4
3.0
2.9
2.7
Country
Denmark
Greece
Hong Kong, China
Estonia
Singapore
Malta
Latvia
Portugal
Finland
Chile
Belgium
Spain
Norway
Slovenia
Bulgaria
Korea
Argentina
Israel
Japan
Lithuania
Australia
Turkey
Romania
Sweden
Luxembourg
Malaysia
Austria
New Zealand
Russian Federation
Thailand
Iceland
Czech Republic
Netherlands
Poland
France
Cambodia
Italy
Country
code
PHL
HUN
USA
IND
DEU
GBR
ZAF
BRA
CHE
TWN
IDN
SVK
IRL
VNM
CAN
CHN
BRN
SAU
MEX
Backward participation
Forward participation
1.2
1.2
0.5
1.0
0.9
0.7
0.7
0.3
0.6
0.9
0.7
0.6
0.8
0.6
0.4
0.2
0.3
0.3
0.1
1.5
1.5
2.2
1.7
1.6
1.9
1.8
2.2
1.7
1.3
1.2
1.1
0.7
0.7
0.8
0.8
0.5
0.3
0.4
Total participation
2.7
2.7
2.7
2.6
2.6
2.6
2.5
2.4
2.3
2.2
1.9
1.7
1.5
1.4
1.2
1.0
0.8
0.6
0.5
Country
Philippines
Hungary
United States
India
Germany
United Kingdom
South Africa
Brazil
Switzerland
Chinese Taipei
Indonesia
Slovak Republic
Ireland
Viet Nam
Canada
China
Brunei
Saudi Arabia
Mexico
GVC PARTICIPATION: FINANCIAL INTERMEDIATION
Country
code
LUX
IRL
CHE
HKG
GBR
SGP
ISL
USA
LVA
ESP
MLT
NLD
MYS
BEL
AUT
ITA
JPN
IND
CHN
BGR
AUS
NOR
PHL
ISR
EST
DEU
GRC
Backward participation
Forward participation
40.3
6.1
1.6
1.9
1.4
1.6
1.3
0.2
0.6
0.3
0.9
0.7
0.1
0.4
0.3
0.1
0.0
0.1
0.0
0.2
0.0
0.1
0.1
0.2
0.3
0.2
0.1
4.8
2.1
4.3
3.7
3.1
1.9
1.7
2.0
1.6
1.7
1.0
1.1
1.6
1.2
1.3
1.3
1.4
1.1
1.1
0.9
1.1
1.0
0.9
0.8
0.7
0.8
0.8
152
Total participation
45.1
8.2
5.9
5.6
4.5
3.6
2.9
2.3
2.1
2.0
1.8
1.8
1.7
1.6
1.6
1.4
1.4
1.2
1.1
1.1
1.1
1.1
1.0
1.0
1.0
1.0
0.9
Country
Luxembourg
Ireland
Switzerland
Hong Kong, China
United Kingdom
Singapore
Iceland
United States
Latvia
Spain
Malta
Netherlands
Malaysia
Belgium
Austria
Italy
Japan
India
China
Bulgaria
Australia
Norway
Philippines
Israel
Estonia
Germany
Greece
Country
code
TWN
PRT
FRA
TUR
CHL
KOR
ZAF
BRA
NZL
FIN
SWE
CZE
RUS
BRN
ARG
SVN
DNK
ROU
KHM
HUN
MEX
CAN
POL
VNM
SAU
IDN
SVK
LTU
THA
Backward participation
Forward participation
0.0
0.1
0.1
0.2
0.0
0.1
0.1
0.0
0.0
0.2
0.1
0.1
0.0
0.0
0.0
0.1
0.1
0.0
0.4
0.0
0.0
0.1
0.0
0.1
0.0
0.0
0.0
0.0
0.0
0.9
0.8
0.8
0.7
0.8
0.7
0.7
0.7
0.6
0.4
0.4
0.5
0.5
0.5
0.5
0.4
0.4
0.4
0.0
0.4
0.4
0.3
0.3
0.2
0.2
0.2
0.2
0.2
0.2
Total participation
0.9
0.9
0.9
0.9
0.8
0.8
0.8
0.7
0.7
0.6
0.5
0.5
0.5
0.5
0.5
0.5
0.5
0.4
0.4
0.4
0.4
0.4
0.3
0.3
0.3
0.3
0.2
0.2
0.2
Country
Chinese Taipei
Portugal
France
Turkey
Chile
Korea
South Africa
Brazil
New Zealand
Finland
Sweden
Czech Republic
Russian Fed.
Brunei
Argentina
Slovenia
Denmark
Romania
Cambodia
Hungary
Mexico
Canada
Poland
Viet Nam
Saudi Arabia
Indonesia
Slovak Republic
Lithuania
Thailand
GVC PARTICIPATION: BUSINESS SERVICES
Country
code
IRL
HKG
ISL
SWE
IND
GBR
BEL
USA
ISR
MLT
ESP
AUT
FIN
LUX
DEU
FRA
EST
Backward participation
Forward participation
8.3
3.7
4.5
2.7
2.9
0.9
2.0
0.4
1.5
3.3
1.4
1.5
1.9
3.4
0.5
0.5
1.1
3.3
4.6
3.0
4.9
4.5
6.3
5.1
6.5
4.9
3.0
4.8
4.4
4.0
2.3
5.0
5.0
4.1
153
Total participation
11.6
8.3
7.6
7.6
7.4
7.3
7.1
6.9
6.4
6.3
6.2
5.9
5.8
5.8
5.5
5.5
5.2
Country
Ireland
Hong Kong, China
Iceland
Sweden
India
United Kingdom
Belgium
United States
Israel
Malta
Spain
Austria
Finland
Luxembourg
Germany
France
Estonia
Country
code
SGP
PRT
NLD
ITA
AUS
NOR
KOR
DNK
CZE
LVA
HUN
JPN
CHE
SVN
PHL
ROU
CHL
POL
GRC
SVK
NZL
TWN
BRA
CAN
CHN
RUS
MYS
TUR
ARG
BGR
LTU
BRN
ZAF
MEX
VNM
IDN
THA
SAU
KHM
Backward participation
Forward participation
2.2
0.8
0.5
0.4
0.3
0.6
0.3
0.7
0.9
0.7
0.8
0.0
0.1
0.5
0.2
0.7
0.1
0.5
0.3
0.3
0.2
0.1
0.1
0.3
0.5
0.0
0.4
0.1
0.0
0.1
0.1
0.2
0.0
0.0
0.0
0.2
0.1
0.0
0.0
1.8
3.1
3.4
3.5
3.4
2.8
2.7
2.2
2.0
2.1
2.0
2.7
2.6
2.2
2.5
1.8
2.4
2.1
2.0
1.9
1.9
1.8
1.7
1.4
1.2
1.7
0.9
1.1
1.1
1.0
0.8
0.7
0.8
0.7
0.6
0.4
0.3
0.4
0.2
154
Total participation
4.1
4.0
3.9
3.9
3.6
3.4
3.0
2.9
2.9
2.9
2.8
2.8
2.7
2.7
2.7
2.6
2.5
2.5
2.3
2.3
2.2
1.9
1.8
1.8
1.7
1.7
1.4
1.2
1.1
1.1
0.9
0.8
0.8
0.7
0.6
0.6
0.4
0.4
0.3
Country
Singapore
Portugal
Netherlands
Italy
Australia
Norway
Korea
Denmark
Czech Republic
Latvia
Hungary
Japan
Switzerland
Slovenia
Philippines
Romania
Chile
Poland
Greece
Slovak Republic
New Zealand
Chinese Taipei
Brazil
Canada
China
Russian Fed.
Malaysia
Turkey
Argentina
Bulgaria
Lithuania
Brunei
South Africa
Mexico
Viet Nam
Indonesia
Thailand
Saudi Arabia
Cambodia
FIGURE 30: SOURCE DATA
Sector
Agriculture
Mining
Manufacturing
Utilities
Total economy
Country/Region
Australia
OECD
World
Australia
OECD
World
Australia
OECD
World
Australia
OECD
World
Australia
OECD
World
Decrease 1995
Decrease 2009
-25.1
-21.1
-17.9
-52.7
-47.6
-50.8
-45.1
-31.4
-31.3
-41.6
-39.3
-40.4
-82.4
-74.4
-72.8
-22.9
-18.6
-21.4
-55.2
-46.7
-55.4
-42.8
-34.3
-36.5
-42.0
-37.2
-42.8
-85.5
-80.1
-76.6
FIGURE 31: SOURCE DATA
International Standard Industrial Classification (ISIC)
Code
50T52: Wholesale and retail trade; repairs
55: Hotels and restaurants
60T63: Transport and storage
64: Post and telecommunications
65T67: Finance and insurance
70: Real estate activities
71: Renting of machinery and equipment
72: Computer and related activities
73: Research and development
74: Other Business Activities
75: Public admin., defence, social security
80: Education
85: Health and social work
90T93: Other services
Australia
-7.8
-3.5
-5.4
-2.2
-0.8
-1.7
0.0
-0.1
-0.1
-3.6
-3.5
-1.5
-1.9
-2.5
155
OECD
-5.1
-3.1
-3.7
-1.1
-1.3
-1.4
-0.3
-0.4
-0.2
-3.1
-4.7
-1.4
-3.8
-2.3
World
-4.7
-3.1
-4.0
-1.1
-1.2
-1.2
-0.2
-0.4
-0.3
-3.1
-4.3
-1.6
-3.7
-2.3
FIGURE 32: SOURCE DATA
International Standard Industrial
Classification (ISIC) Code
45: Construction
50T52: Wholesale and retail trade; repairs
55: Hotels and restaurants
60T63: Transport and storage
64: Post and telecommunications
65T67: Finance and insurance
70: Real estate activities
71T74: Other business activities
75: Public admin., defence, social security
80: Education
85: Health and social work
90T93: Other services
Agriculture
Mining
-2.4
-4.4
-4.2
-0.7
-0.4
-0.2
-0.5
-1.3
-0.6
-0.3
-0.4
-2.1
-6.9
-4.0
-0.7
-2.2
-0.8
-0.2
-0.8
-1.4
-0.9
-0.4
-0.5
-0.7
156
Manufacturing
-14.2
-6.5
-2.4
-4.1
-1.9
-0.4
-1.3
-2.9
-2.4
-1.1
-1.0
-1.9
Services
(incl. utilities)
-24.3
-19.2
-3.9
-12.1
-5.9
-10.3
-14.5
-18.2
-7.8
-4.8
-6.9
-6.9
Total
economy
-21.2
-15.9
-3.4
-10.0
-4.8
-7.9
-11.3
-14.4
-6.4
-3.8
-5.5
-5.6
FIGURE 33: SOURCE DATA
AUSTRALIA
1995
23.5
67.5
72.2
Exports
Value-added
Employment
1996
23.7
68.4
72.6
1997
23.0
68.6
72.8
1998
23.9
69.5
73.9
1999
26.0
69.6
73.0
2000
24.4
70.0
74.1
2001
22.9
69.6
73.9
2002
24.0
70.0
74.5
2003
27.4
70.0
74.8
2004
25.4
69.6
74.4
2005
23.2
68.6
74.4
2006
21.4
69.2
74.6
2007
22.6
69.3
74.7
2008
17.7
68.4
74.6
2009
24.4
70.3
75.2
2010
69.4
G7 COUNTRIES
Exports
Value-added
Employment
1995
19.2
69.8
71.3
1996
20.1
70.4
71.7
1997
20.5
71.1
72.1
1998
20.3
71.9
72.8
1999
20.7
72.4
73.4
2000
20.9
72.6
73.9
2001
21.0
73.8
74.5
2002
21.8
74.6
75.2
2003
21.5
74.7
75.7
2004
22.2
74.3
76.1
2005
22.2
74.5
76.3
FIGURE 34: SOURCE DATA
Industry Sector
Wholesale and retail trade
Transportation and storage
Accommodation and food service activities
Information and communication
Finance and insurance
Real estate, renting and business activities
Community, social and personal services
Australia
2010
Canada
2008
United Kingdom
2010
United States
2011
13.0
8.2
3.5
4.5
15.2
28.6
27.1
17.4
6.6
3.3
5.2
11.4
26.2
29.8
13.9
6.0
3.7
8.5
11.4
26.3
30.3
14.6
4.2
3.7
7.0
9.7
29.5
31.4
157
2006
22.4
74.6
76.5
2007
22.8
74.7
76.8
2008
21.7
75.0
77.2
2009
24.5
2010
FIGURE 35: SOURCE DATA
Total economy
Agriculture, forestry and fishing
Mining
Manufacturing
Electricity, gas, water and waste services
Construction
Total services
All industries
3663
1774
10147
1357
10113
83366
110841
Services sector
Wholesale and retail trade
Accommodation and food services
Transportation and storage
Information and communication
Finance and insurance
Real estate
Professional, scientific and technical services
Administrative and support services
Community, social and personal services
18674
7403
5620
2103
4230
1240
8654
3965
31477
FIGURE 36: SOURCE DATA
Value-added
Country
Australia
New Zealand
Canada
United Kingdom
United States
Norway
Mining
245.7
200.1
154.1
29.5
166.2
88.8
Manufacturing
Market services
35.6
18.4
-7.4
-0.5
22.3
46.5
101.6
59.1
53.8
57.8
50.9
78.1
Non-market services
100.7
96.7
56.2
76.2
77.8
106.7
Employment
Country
Australia
New Zealand
Canada
United Kingdom
United States
Norway
Mining
134.0
..
36.1
-20.8
40.9
99.3
Manufacturing
Market services
-5.2
-12.6
-21.0
-36.4
-31.8
-10.8
19.2
21.8
15.9
9.6
-0.4
12.8
158
Non-market services
35.7
26.0
19.9
20.2
16.3
20.0
FIGURE 37: SOURCE DATA
Sectors
AGC
MNG
MNF
UTI
CON
WHL
RTD
TRM
TSP
INFO
FINI
ART
1994-99
1999-2004
3.91
0.6
0.59
1.93
2.49
5.21
2.07
1.69
2.02
2.78
2.82
-1.85
2004-08
3.5
-0.04
1.33
-2.27
0.94
1.26
1.39
0.77
1.71
-0.96
2.27
0.98
-1.54
-4.09
-1.39
-4.92
0.63
-0.03
0.25
0.4
0.67
0.12
4.34
-1.87
FIGURE 38: SOURCE DATA
2001-2012
Country
code
EST
SWE
NOR
CZE
AUS
DNK
SVN
AUT
HUN
NLD
PRT
SVK
FIN
FRA
ESP
LUX
DEU
ITA
Trade, hotels and
transport
2.14
0.78
0.66
1.19
0.67
0.31
1.19
0.37
0.83
0.78
0.42
-0.24
0.70
0.17
0.47
-0.63
0.58
-0.26
Information and
communication
0.50
0.86
0.77
0.42
0.29
0.77
0.35
0.17
0.70
0.25
0.10
0.57
0.60
0.43
0.25
0.47
0.37
0.21
Finance and
insurance
0.64
0.31
0.58
0.29
1.05
0.81
0.60
0.51
-0.07
0.51
0.81
0.54
0.12
0.23
0.54
1.24
0.05
0.33
Professional
services
0.54
0.42
0.04
0.19
-0.08
0.00
-0.61
0.24
-0.22
-0.28
-0.20
0.43
-0.30
0.23
-0.40
-0.19
-0.40
-0.57
Country
code
EST
SWE
NOR
CZE
AUS
DNK
SVN
AUT
HUN
NLD
PRT
SVK
FIN
FRA
Trade, hotels and
transport
3.85
1.58
1.43
2.78
0.58
0.71
1.95
0.85
2.25
1.50
-0.11
-0.14
0.94
0.32
Information and
communication
0.98
1.07
1.03
0.88
0.36
0.96
0.58
0.36
0.94
0.54
0.31
0.68
0.76
0.72
2001-2007
Finance and
insurance
1.69
0.52
1.02
0.30
1.58
1.43
1.05
0.71
0.15
0.76
1.26
1.03
0.32
0.34
Professional
services
1.46
0.72
-0.16
0.36
-0.23
-0.31
-1.23
0.31
0.08
-0.23
-0.21
1.02
-0.23
0.33
159
Country
Estonia
Sweden
Norway
Czech Republic
Australia
Denmark
Slovenia
Austria
Hungary
Netherlands
Portugal
Slovak Republic
Finland
France
Spain
Luxembourg
Germany
Italy
Country
Estonia
Sweden
Norway
Czech Republic
Australia
Denmark
Slovenia
Austria
Hungary
Netherlands
Portugal
Slovak Republic
Finland
France
Country
code
ESP
LUX
DEU
ITA
Trade, hotels and
transport
-0.33
-0.13
1.28
-0.35
Information and
communication
0.33
0.13
0.18
0.36
Finance and
insurance
1.14
3.05
-0.09
0.40
Professional
services
-0.78
0.09
-0.17
-0.54
Country
code
EST
SWE
NOR
CZE
AUS
DNK
SVN
AUT
HUN
NLD
PRT
SVK
FIN
FRA
ESP
LUX
DEU
ITA
Trade, hotels and
transport
0.10
-0.18
-0.26
-0.72
0.81
-0.17
0.27
-0.21
-0.88
-0.08
1.07
-0.35
0.41
-0.01
1.43
-1.24
-0.27
-0.16
Information and
communication
-0.07
0.62
0.46
-0.13
0.18
0.55
0.08
-0.06
0.41
-0.10
-0.14
0.43
0.41
0.09
0.16
0.90
0.61
0.02
2007-2012
Finance and
insurance
-0.63
0.05
0.06
0.29
0.25
0.07
0.05
0.28
-0.34
0.20
0.27
-0.06
-0.12
0.09
-0.18
-1.02
0.21
0.24
Professional
services
-0.57
0.07
0.28
-0.03
0.15
0.38
0.14
0.15
-0.59
-0.33
-0.19
-0.27
-0.39
0.10
0.05
-0.54
-0.69
-0.61
Country
Spain
Luxembourg
Germany
Italy
Country
Estonia
Sweden
Norway
Czech Republic
Australia
Denmark
Slovenia
Austria
Hungary
Netherlands
Portugal
Slovak Republic
Finland
France
Spain
Luxembourg
Germany
Italy
FIGURE 39: SOURCE DATA
Country code
SVN
FIN
CHE
NOR
BEL
NLD
SWE
CZE
AUT
ISR
SVK
DEU
GBR
JPN
EST
ZAF
ITA
CHL
HUN
PRT
DNK
ESP
POL
TUR
FRA
RUS
Manufacturing
Services
#N/A
85.8
79.5
77.8
74.9
70.7
69.5
66.8
66.3
62.7
61.2
60.8
60.0
59.0
54.8
54.5
54.0
52.8
47.5
47.1
45.9
42.9
41.3
34.8
34.0
29.9
Country
72.8
77.6
56.6
66.5
52.2
55.8
56.1
62.3
43.9
55.7
52.1
41.5
57.6
40.3
57.0
40.4
39.3
34.1
50.5
53.8
32.7
32.6
34.2
26.2
30.0
9.5
160
Slovenia
Finland
Switzerland (2009-11)
Norway
Belgium
Netherlands
Sweden
Czech Republic
Austria
Israel (2006-08)
Slovak Republic
Germany
United Kingdom
Japan (2009-10)
Estonia
South Africa (2005-07)
Italy
Chile (2009-10)
Hungary
Portugal
Denmark
Spain
Poland
Turkey
France
Russian Federation (2009-11)
Country code
Manufacturing
NZL
AUS
BRA
Services
29.2
27.8
13.3
Country
15.6
19.2
20.1
New Zealand (2009-10)
Australia (2011)
Brazil (2006-08)
FIGURE 40: SOURCE DATA
Country
code
AUT
FIN
NLD
DEU
BEL
ITA
ESP
PRT
CZE
FRA
EST
HUN
AUS
SVK
High-tech
manufacturing
46.2
41.0826
29.2046
27.3381
27.3
20.5888
19.7837
16.4686
14.2246
13.3374
10.2041
8.5869
6.2
6.1977
Other
manufacturing
20.9
20.0334
13.6548
14.2102
11.8
14.3282
8.9979
4.6789
7.5145
6.6334
8.1448
6.4516
6.3
3.8256
Knowledgeintensive services
17
15.3414
10.9389
17.1598
17.2
12.7161
19.5902
14.3985
8.0276
8.9125
5.8355
12.7663
5.4
2.2282
161
Other services
6.5
3.647
4.0911
6.0498
5
4.7878
5.4104
5.3615
2.627
2.0555
3.6269
3.4663
2.1
1.6813
Country
Austria
Finland
Netherlands
Germany
Belgium
Italy
Spain
Portugal
Czech Republic
France
Estonia
Hungary
Australia
Slovak Republic
FIGURE 41: SOURCE DATA
Country
code
LUX
CHE
ISL
GBR
BEL
IRL
CAN
USA
AUS
NLD
SVN
DNK
DEU
SWE
FRA
ITA
AUT
FIN
NOR
CZE
ESP
SVK
GRC
EST
HUN
POL
PRT
TUR
Information and
communication
4.0
3.1
4.3
3.9
2.4
4.1
2.2
3.0
1.8
3.0
2.6
3.8
3.0
3.6
2.9
2.6
2.5
3.9
3.3
2.4
2.4
2.5
1.8
2.8
2.5
2.0
1.6
0.9
Finance and
insurance
11.3
5.5
4.9
3.6
3.0
5.1
5.3
4.1
3.7
3.0
2.7
3.3
2.9
2.0
3.0
2.6
3.1
1.9
2.0
1.8
2.1
1.8
2.5
1.7
2.3
2.4
2.2
1.2
Professional, scientific
and technical activities
8.3
7.5
6.0
7.7
9.6
5.5
6.4
6.2
7.6
6.7
7.2
5.4
6.1
6.3
5.8
6.4
5.6
5.2
4.6
5.5
5.0
5.1
4.8
4.0
3.3
3.2
3.4
1.8
Total share
in 2000
20.9
14.4
#N/A
13.6
13.1
12.4
13.1
13.2
12.8
13.0
8.0
11.1
11.1
11.3
10.7
10.8
10.1
9.6
9.4
8.1
8.1
7.8
#N/A
6.5
6.5
#N/A
5.9
#N/A
Country
Luxembourg
Switzerland
Iceland
United Kingdom
Belgium
Ireland
Canada
United States
Australia
Netherlands
Slovenia
Denmark
Germany
Sweden
France
Italy
Austria
Finland
Norway
Czech Republic
Spain
Slovak Republic
Greece
Estonia
Hungary
Poland
Portugal
Turkey
FIGURE 42: SOURCE DATA
Country code
LUX
SWE
DNK
CHE
NOR
ISL
FIN
USA
FRA
SVN
CZE
GBR
NLD
ITA
IRL
EST
EU28
AUT
POL
DEU
BEL
HUN
Manufacturing
Business sector services
39.7
28.3
35.0
31.3
26.2
17.0
34.8
28.5
38.0
20.7
21.1
29.8
30.0
23.4
26.0
18.3
25.4
27.6
17.0
29.9
28.2
15.9
Country
58.6
41.0
40.7
39.3
38.1
38.0
37.7
35.4
33.1
32.6
32.2
31.9
31.2
30.2
29.9
29.8
29.5
28.9
28.6
28.5
28.2
28.1
162
Luxembourg
Sweden
Denmark
Switzerland
Norway
Iceland
Finland
United States
France
Slovenia
Czech Republic
United Kingdom
Netherlands (2011)
Italy
Ireland
Estonia
EU28
Austria
Poland
Germany
Belgium
Hungary
Country code
Manufacturing
SVK
PRT
GRC
ESP
TUR
AUS
Business sector services
Country
16.4
13.8
14.3
21.0
8.3
9.7
27.1
24.5
23.6
22.4
12.4
33.8
Slovak Republic
Portugal
Greece
Spain
Turkey
Australia
FIGURE 43: SOURCE DATA
Information-Processing Skills
Industry
Agriculture/forestry/ fishing
Manufacturing/mining/
other industries
Construction
Trade/transportation/ storage/
accommodation/food
Information and communication
Financial and insurance
Real estate
Professional/scientific/tech/admin/
support services
Public services
Other services
Reading at work
2.0
Writing at work
1.5
Numeracy at work
1.9
ICT at work
1.6
Problem solving
1.8
2.1
2.0
2.3
1.9
2.1
2.0
1.7
2.2
1.8
2.2
1.9
1.8
2.1
1.8
1.8
2.6
2.6
2.7
2.4
2.5
2.9
2.4
2.5
2.7
2.9
2.8
2.5
2.8
2.6
2.5
2.4
2.2
2.3
2.3
2.2
2.5
2.2
2.5
2.0
2.0
2.1
2.1
2.1
2.3
1.8
General Skills
Industry
Agriculture/forestry/ fishing
Manufacturing/mining/
other industries
Construction
Trade/transportation/storage/
accommodation/food
Information and communication
Financial and insurance
Real estate
Professional/scientific/tech/admin/
support services
Public services
Other services
Task
discretion
Learning
at work
Influencing
skills
Selforganising
skills
3.2
Dexterity
Physical
skills
1.7
Cooperative
skills
2.6
1.9
2.0
3.7
3.4
1.8
2.1
2.0
2.8
3.0
3.5
2.6
1.9
2.2
2.1
2.8
3.4
3.7
3.1
1.8
2.1
2.2
2.8
3.0
3.4
2.7
2.1
2.0
2.2
2.3
2.4
2.3
2.5
2.5
2.5
2.7
2.4
2.6
3.8
3.5
3.7
3.2
3.0
3.2
0.8
0.7
1.2
2.1
2.1
2.2
2.3
3.5
3.4
1.5
1.7
1.9
2.3
2.0
2.7
2.3
2.7
2.7
3.5
3.3
3.4
3.5
2.0
2.4
FIGURE 44: SOURCE DATA
Import penetration
Country code
LUX
IRL
ISL
DNK
EST
BEL
HUN
1995
23.1
14.3
5.9
4.8
12.1
6.4
5.1
2009
38.3
26.2
11.6
9.4
8.3
8.1
7.6
Country
Luxembourg
Ireland
Iceland
Denmark
Estonia
Belgium
Hungary
163
Country code
FIN
NOR
KOR
NLD
SWE
SVN
SVK
ISR
AUT
DEU
CZE
GRC
CHL
GBR
CHE
PRT
CAN
ESP
NZL
POL
ITA
FRA
AUS
TUR
MEX
USA
JPN
1995
4.8
4.7
5.3
7.2
4.1
4.6
5.7
4.2
6.1
3.1
7.5
2.4
4.3
2.7
2.1
3.2
3.4
2.6
3.5
2.8
3.7
2.7
1.9
3.2
1.9
1.2
1.2
2009
6.5
6.2
6.1
6.0
5.9
5.6
5.6
5.5
5.4
4.6
4.3
4.2
3.9
3.9
3.8
3.6
3.5
3.4
3.4
3.1
2.9
2.6
2.2
1.8
1.6
1.5
1.4
Country
Finland
Norway
Korea
Netherlands
Sweden
Slovenia
Slovak Republic
Israel
Austria
Germany
Czech Republic
Greece
Chile
United Kingdom
Switzerland
Portugal
Canada
Spain
New Zealand
Poland
Italy
France
Australia
Turkey
Mexico
United States
Japan
EXPORT RATIO
Country code
LUX
IRL
ISL
EST
DNK
BEL
HUN
AUT
SWE
CHE
NOR
SVN
FIN
GRC
NLD
ISR
GBR
KOR
PRT
CZE
ESP
SVK
DEU
POL
1995
44.5
8.3
9.2
19.9
8.6
9.3
11.1
10.3
6.1
6.9
9.7
8.5
6.2
11.0
10.6
6.9
6.2
5.5
6.9
11.5
7.2
12.1
3.3
5.6
2009
57.7
33.2
17.0
16.7
14.6
13.6
13.1
12.9
12.2
12.0
10.8
10.8
10.7
10.4
9.5
9.1
8.6
8.5
8.3
8.3
7.2
6.9
6.2
5.5
Country
Luxembourg
Ireland
Iceland
Estonia
Denmark
Belgium
Hungary
Austria
Sweden
Switzerland
Norway
Slovenia
Finland
Greece
Netherlands
Israel
United Kingdom
Korea
Portugal
Czech Republic
Spain
Slovak Republic
Germany
Poland
164
Country code
NZL
CHL
TUR
FRA
CAN
ITA
AUS
USA
MEX
JPN
1995
2009
6.1
5.9
10.2
5.4
4.6
5.4
3.6
2.9
3.8
1.1
Country
5.4
5.4
5.0
4.6
4.2
4.0
3.4
3.1
2.0
1.7
165
New Zealand
Chile
Turkey
France
Canada
Italy
Australia
United States
Mexico
Japan
FIGURE 45: SOURCE DATA
Figure 45: Source data
TRADE AND REPAIR (ISIC 45 TO 47)
Belgium
Denmark
Ireland
Japan
Netherlands
Poland
Portugal
Sweden
Estonia
Finland
Luxembourg
Slovak Republic
Slovenia
Spain
Hungary
Austria
France
Czech Republic
Norway
Italy
Germany
United States
United Kingdom
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
0
0
0
0
0
0.04
0.06
0.07
0.10
0.11
0.15
0.16
0.19
0.20
0.35
0
0
0
0
0
133
80
129
510
198
117
444
957
2,100
3,263
TRANSPORTATION AND STORAGE (ISIC 49 TO 53)
Belgium
Denmark
Germany
Hungary
Japan
Netherlands
Portugal
Sweden
United States
Austria
Czech Republic
Estonia
Ireland
Luxembourg
Norway
Poland
Slovak Republic
Slovenia
Spain
Italy
France
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
0
0
0
0
0
0
0
0
0
0
0.32
0.54
166
0
0
0
0
0
0
0
0
0
0
170
398
United Kingdom
Finland
0.80
5.39
2,422
698
INFORMATION AND COMMUNICATION (ISIC 58 TO 63)
Czech Republic
France
Germany
Netherlands
Poland
Spain
Sweden
United States
Austria
Belgium
Denmark
Estonia
Ireland
Luxembourg
Portugal
Slovak Republic
Slovenia
Norway
Hungary
United Kingdom
Italy
Finland
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
0
0
0
0
0
0
0
0
0
0.01
0.02
1.34
3.44
4.63
0
0
0
0
0
0
0
0
0
3
8
4,119
2,779
1,082
FINANCE AND INSURANCE (ISIC 64 TO 66)
Austria
Belgium
Czech Republic
Finland
France
Italy
Japan
Denmark
Estonia
Hungary
Norway
Poland
Portugal
Slovak Republic
Slovenia
Spain
Germany
United States
United Kingdom
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
0
0
0
0
0
0
0
0
0
0.25
2.08
5.15
167
0
0
0
0
0
0
0
0
0
244
8,500
16,729
PROFESSIONAL, SCIENTIFIC AND TECHNICAL
ACTIVITIES (ISIC 69-75)
Belgium
Czech Republic
Denmark
France
Germany
Hungary
Ireland
Italy
Luxembourg
Netherlands
Poland
Slovak Republic
Slovenia
Spain
Sweden
United States
Estonia
Portugal
Austria
Norway
Finland
United Kingdom
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
0
0
0.11
0.14
0.77
2.12
0
0
18
24
115
4,145
ADMINISTRATIVE AND SUPPORT SERVICE ACTIVITIES
(ISIC 77-82)
Belgium
Czech Republic
Hungary
Ireland
Netherlands
Slovenia
Spain
Sweden
United States
Denmark
Estonia
Finland
Luxembourg
Poland
Portugal
Slovak Republic
Norway
Austria
France
Germany
Italy
United Kingdom
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
0
0
0
0
0
0
0
0.05
0.25
0.43
0.73
1.02
1.83
168
0
0
0
0
0
0
0
24
143
635
2,344
1,518
5,902
FIGURE 46: SOURCE DATA
Country by direction of flow
Inward
United Kingdom
Outward
Inward
France
Outward
Inward
Australia
Outward
Inward
Germany (2010)
Outward
Inward
Turkey
Outward
Inward
United States
Outward
Inward
Italy
Outward
Inward
Korea
Outward
Inward
Japan
Outward
Total FDI
48.2
69.0
35.0
57.5
33.9
22.7
27.0
34.3
18.1
3.4
16.4
26.8
15.5
23.7
12.0
29.7
3.8
16.3
Services
28.9
38.9
29.0
46.7
13.1
8.8
23.9
27.3
7.2
2.2
9.6
21.7
9.5
16.4
7.2
11.5
2.2
6.7
FIGURE 47: SOURCE DATA
INWARD FDI STOCKS
Wholesale and retail
trade, repair
0.264
Hotels and
restaurants
0.0298
Transports, storage
and communication
0.2
Financial
intermediation
0.332
Real estate, renting and
business activities
0.154
OUTWARD FDI STOCKS
Wholesale and retail
trade, repair
0.0258
Transports, storage
and communication
0.0462
Financial
intermediation
0.8046
169
Real estate, renting
and business activities
0.0652
Other services
0.0582
Other
services
0.0209
FIGURE 48: SOURCE DATA
Year
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Exports
Imports
13.3
14.4
15.9
18.5
20.0
22.8
24.7
26.1
27.5
29.1
34.4
34.6
35.7
36.1
37.7
40.0
43.9
48.3
51.4
51.1
50.5
50.0
51.2
18.1
17.8
19.2
20.5
22.0
24.1
24.7
26.6
29.5
29.8
33.4
33.8
34.0
34.1
38.5
40.7
44.1
50.1
58.4
54.1
56.1
59.9
62.4
FIGURE 49: SOURCE DATA
EXPORTS
1992 share (%)
1992
Sector
Passenger transport
Freight transport
Other transport
Postal and courier transport
Business travel
Education-related personal travel
Other personal travel
Insurance and pension services
Financial services
Intellectual property
Telecom., computer & information serv.
Other business services
Personal, cultural and recreational services
Government
Other services
Services
1,974
705
1,904
503
606
1,210
4,706
368
1,011
202
904
1,062
171
470
91
15,887
170
2012 share (%)
2012
2,490
348
2,286
1,040
4,102
14,467
12,173
457
1,596
831
1,668
7,824
878
912
110
51,182
12.4
4.4
12.0
3.2
3.8
7.6
29.6
2.3
6.4
1.3
5.7
6.7
1.1
3.0
0.6
100.0
4.9
0.7
4.5
2.0
8.0
28.3
23.8
0.9
3.1
1.6
3.3
15.3
1.7
1.8
0.2
100.0
1992
1992 share (%)
2012 share (%)
1992 share (%)
2012 share (%)
2012
Sector
IMPORTS
1992
Sector
Passenger transport
Freight transport
Other transport
Postal and courier transport
Business travel
Education-related personal travel
Other personal travel
Insurance and pension services
Financial services
Intellectual property
Telecom., computer & information serv.
Other business services
Personal, cultural and recreational services
Government
Other services
Services
2012
2,465
3,693
35
147
1,313
331
3,665
786
804
1,146
946
2,765
490
554
20
19,160
6,901
9,228
480
79
3,386
1,020
22,132
714
777
4,044
1,790
8,804
1,623
968
493
62,439
12.9
19.3
0.2
0.8
6.9
1.7
19.1
4.1
4.2
6.0
4.9
14.4
2.6
2.9
0.1
100.0
11.1
14.8
0.8
0.1
5.4
1.6
35.4
1.1
1.2
6.5
2.9
14.1
2.6
1.6
0.8
100.0
FIGURE 50: SOURCE DATA
EXPORTS
2000 Share (%)
2000
Country
United Kingdom
Other EU27
Other Europe
United States
Other Americas
Japan
China
Hong Kong (China)
India
Malaysia
Singapore
Korea
Other Asia
Oceania
Africa
Services
2012 Share (%)
2012
2263
1698
648
3231
481
1969
472
696
271
526
1092
453
2378
2104
239
18,520
171
4024
4667
1397
5438
2235
2031
5945
1804
1855
1727
3288
1824
8041
4989
1102
50,372
12.2
9.2
3.5
17.4
2.6
10.6
2.5
3.8
1.5
2.8
5.9
2.4
12.8
11.4
1.3
100.0
8.0
9.3
2.8
10.8
4.4
4.0
11.8
3.6
3.7
3.4
6.5
3.6
16.0
9.9
2.2
100.0
2000
2000 Share (%)
2012 Share (%)
2000 Share (%)
2012 Share (%)
2012
Country
IMPORTS
2000
United Kingdom
Other EU27
Other Europe
United States
Other Americas
Japan
China
Hong Kong (China)
Indonesia
Malaysia
Singapore
Thailand
Other Asia
Oceania
Africa
Services
2012
2481
1958
957
4101
551
1018
428
725
442
478
1167
353
1269
1406
250
17,583
5224
8760
2801
11436
1870
2333
1939
2085
2263
1317
4491
2566
7541
5546
838
61,009
FIGURE 51: SOURCE DATA
Country code
USA
GBR
DEU
FRA
CHN
BLX
IND
ESP
JPN
SGP
KOR
IRL
NLD
ITA
HKG
CAN
CHE
DNK
RUS
SWE
AUT
1998
19.3
8.3
6.2
6.3
1.8
2.8
0.9
3.6
4.6
1.8
1.9
1.2
3.7
5.0
2.5
2.5
2.0
1.1
0.9
1.4
1.7
2012
15.8
7.1
6.5
4.9
4.8
4.3
3.5
3.3
3.3
2.9
2.7
2.6
2.6
2.5
2.4
2.0
1.7
1.6
1.5
1.5
1.4
Country
United States
United Kingdom
Germany
France
China
Belgium + Luxembourg
India
Spain
Japan
Singapore
Korea
Ireland
Netherlands
Italy
Hong Kong (China)
Canada
Switzerland
Denmark
Russian Federation
Sweden
Austria
172
14.1
11.1
5.4
23.3
3.1
5.8
2.4
4.1
2.5
2.7
6.6
2.0
7.2
8.0
1.4
100.0
8.6
14.4
4.6
18.7
3.1
3.8
3.2
3.4
3.7
2.2
7.4
4.2
12.4
9.1
1.4
100.0
Country code
AUS
THA
TUR
BRA
POL
MYS
NOR
GRC
ISR
FIN
PRT
IDN
CZE
HUN
UKR
EGY
PHL
MEX
MAR
ZAF
ARG
ROU
CHL
HRV
NZL
SAU
KWT
VNM
PAN
1998
2012
1.3
1.0
1.7
0.6
0.8
0.9
1.2
1.0
0.7
0.5
0.7
0.3
0.6
0.4
0.3
0.6
0.6
0.8
0.2
0.4
0.4
0.1
0.3
0.3
0.3
0.3
0.1
0.2
0.1
1.3
1.2
1.1
1.0
0.9
0.9
0.9
0.9
0.7
0.6
0.6
0.6
0.6
0.5
0.5
0.5
0.5
0.4
0.4
0.4
0.4
0.3
0.3
0.3
0.3
0.3
0.2
0.2
0.2
Country
Australia
Thailand
Turkey
Brazil
Poland
Malaysia
Norway
Greece
Israel
Finland
Portugal
Indonesia
Czech Republic
Hungary
Ukraine
Egypt
Philippines
Mexico
Morocco
South Africa
Argentina
Romania
Chile
Croatia
New Zealand
Saudi Arabia
Kuwait
Viet Nam
Panama
FIGURE 52: SOURCE DATA
Country or Regional Bloc
OECD EU
1995
2011
1995 Share
(%)
2011 Share
(%)
5,559,924,388,078
11,200,139,401,616
29.8
25.6
238,505,580,455
3,145,571,226,671
1.3
7.2
United States
5,320,100,000,000
11,926,820,798,798
28.5
27.2
Other Asia & Oceania
1,081,224,786,316
3,873,908,105,094
5.8
8.8
Japan
3,467,295,811,664
4,179,993,411,966
18.6
9.5
Other OECD
1,610,607,310,032
4,898,921,292,534
8.6
11.2
South & Central America
863,839,237,144
2,413,413,195,784
4.6
5.5
Other Europe
282,577,577,387
1,307,949,134,025
1.5
3.0
Africa
258,213,777,483
843,957,885,565
1.4
1.9
World
18,685,424,069,276
43,798,115,272,310
100.0
100.0
China
173
FIGURE 53: SOURCE DATA
5. Construction
3.2. Freight transport
8. Charges for the use of intellectual property n.i.e.
6. Insurance and pension services
9.Telecommunications, computer, and information services
10.3. Technical, trade-related, and other business services
7. Financial services
10.1. Research and development services
11.1. Audiovisual and related services
3.3.2. Other transport
10.2. Professional and management consulting services
12. Government goods and services n.i.e.
3.1. Passenger transport
4.2.1+4.2.3. Other personal travel
11.2. Other personal, cultural, and recreational services
4.1. Business travel
3.3.1. Postal and courier services
4.2.2. Education-related personal travel
0.051
0.082
0.293
0.341
0.365
0.379
0.380
0.418
0.802
0.819
0.867
0.928
1.102
1.122
1.488
2.024
5.036
10.364
FIGURE 54: SOURCE DATA
Total Services
Transport: passenger
Transport: freight
1.33
1.39
0.07
100.00
4.49
13.50
Growth of imports 20052011
64.65
43.95
60.23
Transport: other
7.76
3.99
2.70
3.67
0.08
0.45
0.01
1.23
0.17
0.98
0.41
0.18
1.03
0.62
0.72
1.15
0.47
6.18
0.30
3.15
17.46
2.16
1.25
3.36
0.24
0.34
3.21
5.98
1.80
3.02
0.22
1.68
6.69
17.52
84.18
30.59
22.64
35.90
72.32
62.63
79.24
144.46
8.28
78.67
71.27
92.62
115.79
73.77
84.08
124.01
74.41
0.63
1.69
0.78
0.73
0.92
2.60
19.25
260.18
42.22
Industry
Share of AUS in IMP
Postal & courier
Travel: business
Travel: personal
Construction
Direct insurance
Reinsurance
Auxiliary insurance serv.
Pension & standardized guaranteed serv.
Financial services
Intellectual property
Telecommunications services
Computer services
Information services
R&D services
Professional & management consulting serv.
Technical, trade-related & other bus. serv.
Audio-visual and related services
Other personal, cultural & recreational serv.
Government goods and services n.i.e.
174
Market size (%)
FIGURE 55: SOURCE DATA
Variable
USA
JPN
KOR
Chin
India
CAN
Rus.
Fed.
MEX
Market size (%)
10.8
4.4
2.5
6.0
3.1
2.7
2.3
0.8
Share of AUS in IMP
1.25
1.13
1.78
2.44
1.78
0.78
0.13
0.21
43
26
69
184
164
65
126
33
Growth of total imports
NZ
0.3
28.9
5
42
Other
South
East Asia
7.6
Switz
South
Africa
All
countries
GER
FRA
UK
Italy
NLD
SWE
NOR
7.7
4.8
2.9
2.4
1.4
1.2
1.3
0.5
100.0
2.98
0.33
0.35
0.29
0.46
0.42
0.51
1.54
2.29
1.30
78
39
78
4.5
2.2
4
11
29
30
63
59
101
62
65
GER
FRA
UK
Italy
NLD
SWE
NOR
Switz
South
Africa
7.7
39
54
4.8
78
94
2.9
29
73
2.4
30
10
1.4
63
22
1.2
59
40
1.3
101
124
0.5
62
127
FIGURE 56: SOURCE DATA
Variable
Market size (%)
Share of AUS in IMP
Growth of total imports
USA
JPN
KOR
Chin
India
CAN
Rus.
Fed.
MEX
10.8
43
58
4.4
26
-17
2.5
69
75
6.0
184
150
3.1
164
136
2.7
65
103
2.3
126
178
0.8
33
83
NZ
0.3
42
39
Other
South
East Asia
7.6
78
85
4.5
11
17
All
countries
100.0
65
69
FIGURE 57: SOURCE DATA
ASIA (INCL. JPN &
KOR)
Market size (%)
Share of AUS in IMP
Growth of total imports
Growth of imports from AUS
Transport
Travel
Construction
Insurance
and pension
services
Financial
services
11.3
0.74
86
11
73.1
7.71
73
91
0.2
0.23
85
494
0.7
0.34
155
143
1.6
1.60
199
140
Charges for the
use of intellectual
property n.i.e.
1.2
0.38
73
297
175
Telecom.,
computer, and
information
services
1.5
1.27
110
41
Other
business
services
8.5
0.86
105
88
Personal,
cultural, and
recreational
services
1.1
2.23
138
83
Government
goods and
services n.i.e.
0.7
2.33
47
27
Total
services
100.0
2.21
86
76
Transport
Travel
Construction
Insurance
and pension
services
4.2
0.31
183
60
89.7
7.20
234
161
0.1
0.11
130
440
0.6
0.19
174
342
CHINA
Market size (%)
Share of AUS in IMP
Growth of total imports
Growth of imports from AUS
Financial
services
Charges for the
use of
intellectual
property n.i.e.
Telecom.,
computer, and
information
services
Other
business
services
Personal,
cultural, and
recreational
services
Government
goods and
services n.i.e.
Total
services
0.7
5.80
368
1318
0.4
0.15
176
35
0.4
0.49
126
8
2.4
0.35
141
100
0.9
12.91
160
133
0.5
2.71
71
35
100.0
2.44
184
150
176
BOX 5: SOURCE DATA
Country
code
AUS
AUT
BEL
BRA
CAN
CHE
CHL
CHN
CZE
DEU
DNK
ESP
EST
FIN
FRA
GBR
GRC
HUN
IDN
IND
IRL
ISL
ISR
ITA
JPN
KOR
LUX
MEX
NLD
NOR
NZL
POL
PRT
RUS
SVK
SVN
SWE
TUR
USA
ZAF
Restrictions on
foreign entry
0.027
0.067
0
0.053
0.040
0.027
0.013
0.080
0
0.027
0.013
0.053
0.027
0.040
0
0
0.027
0.013
0.067
0.013
0.027
0.067
0.040
0.053
0.027
0
0.040
0.013
0
0.040
0.013
0.027
0
0.013
0.027
0.013
0.040
0.013
0.013
0.053
Restrictions to
movement of people
0.055
0.183
0.091
0.164
0.055
0.164
0.073
0.128
0.183
0.091
0.055
0.128
0.383
0.091
0.091
0.091
0.128
0.164
0.201
0.110
0.091
0.110
0.183
0.164
0.110
0.055
0.110
0.110
0.055
0.055
0.055
0.383
0.183
0.183
0.383
0.164
0.055
0.091
0.164
0.256
Other discriminatory
measures
0
0.021
0.011
0.032
0.011
0
0
0.011
0.011
0.011
0
0.011
0.021
0
0.011
0.011
0.011
0.011
0.011
0.011
0.011
0.021
0
0.021
0.021
0
0.021
0.011
0.011
0.011
0.011
0.011
0.032
0.011
0.011
0
0.011
0.021
0.021
0.032
Barriers to
competition
0
0
0
0.011
0.011
0
0.011
0.021
0
0.021
0
0
0.011
0
0
0
0.021
0.011
0
0
0
0
0.011
0
0
0
0.021
0
0
0
0
0.011
0.011
0.011
0.021
0.011
0
0.011
0
0.032
Regulatory
transparency
0
0.047
0.016
0.031
0
0
0.047
0.047
0.047
0.016
0
0.047
0
0
0
0
0.031
0
0.047
0.063
0
0
0.016
0.031
0.031
0.031
0.016
0.016
0
0
0.016
0.031
0
0.031
0
0
0
0.031
0
0
Average
0.203
0.203
0.203
0.203
0.203
0.203
0.203
0.203
0.203
0.203
0.203
0.203
0.203
0.203
0.203
0.203
0.203
0.203
0.203
0.203
0.203
0.203
0.203
0.203
0.203
0.203
0.203
0.203
0.203
0.203
0.203
0.203
0.203
0.203
0.203
0.203
0.203
0.203
0.203
0.203
BOX 9: SOURCE DATA
Country
code
BRA
ZAF
Wholesale, retail,
hotels & rest.
6.7%
4.0%
Transport, storage &
telecom.
7.4%
10.9%
Finance &
insurance
2.3%
3.6%
177
Business
services
8.2%
3.9%
Other
services
3.8%
3.5%
2009 total
1995 total
28.4%
25.9%
28.5%
23.6%
Country
code
AUS
CHN
RUS
USA
CAN
GBR
NOR
IND
CHL
MEX
NLD
IDN
Wholesale, retail,
hotels & rest.
3.6%
5.7%
6.0%
1.7%
5.2%
2.3%
2.3%
4.1%
1.7%
3.1%
1.1%
1.2%
Transport, storage &
telecom.
4.4%
4.0%
5.1%
2.3%
1.7%
2.3%
1.9%
2.2%
2.4%
1.3%
1.4%
0.9%
Finance &
insurance
3.7%
3.5%
1.5%
1.8%
2.0%
2.1%
2.3%
2.6%
1.6%
2.4%
1.2%
0.5%
Business
services
7.3%
4.6%
3.7%
8.4%
5.0%
5.7%
5.2%
0.8%
5.5%
3.2%
4.6%
0.8%
Other
services
2.5%
1.9%
2.4%
2.0%
2.2%
1.8%
1.4%
2.3%
0.7%
0.2%
0.8%
1.3%
2009 total
1995 total
21.5%
19.7%
18.7%
16.2%
16.1%
14.2%
13.2%
12.0%
11.9%
10.2%
9.1%
4.6%
20.5%
16.8%
#N/A
13.4%
19.5%
20.2%
14.1%
11.2%
21.8%
10.1%
16.2%
8.5%
BOX 11: SOURCE DATA
Sector
Computer
Construction
Legal
Accounting
Architecture
Engineering
Telecom
Distribution
Broadcasting
Motion pictures
Sound recording
Commercial banking
Insurance
Air transport
Maritime transport
Road transport
Rail transport
Courier
Restrictions
on foreign
entry
0.052
0.084
0.029
0.071
0.026
0.027
0.075
0.063
0.126
0.055
0.042
0.098
0.099
0.135
0.160
0.074
0.046
0.135
Restrictions
to
movement
of people
0.062
0.039
0.057
0.064
0.108
0.055
0.012
0.016
0.023
0.044
0.044
0.019
0.020
0.013
0.038
0.032
0.024
0.022
Other
discriminatory
measures
Barriers to
competition
Regulatory
transparency
Average
Minimum
0
0.034
0.010
0
0.012
0
0
0
0.011
0
0
0
0.005
0
0.006
0
0
0.013
0
0
0.018
0
0.012
0
0.103
0
0.022
0
0
0.011
0.005
0.110
0.022
0
0.130
0.099
0
0
0
0
0
0
0
0
0
0
0
0.011
0.006
0
0.007
0
0
0.039
0.175
0.166
0.316
0.304
0.227
0.203
0.220
0.130
0.279
0.178
0.158
0.192
0.199
0.437
0.249
0.162
0.221
0.263
0.079
0.054
0.114
0.133
0.066
0.065
0.056
0.022
0.070
0.060
0.049
0.064
0.047
0.258
0.070
0.081
0.057
0.070
178
SOURCE DATA FOR ANNEX 2 – TURNOVER OF MNE AFFILIATES ABROAD
Wholesale and retail trade, repair
Transportation and storage
Accommodation and food services
Information and communication
Finance and insurance
Real estate
Professional, scientific and technical services
Administrative and support services
50.3%
4.7%
1.5%
10.3%
24.5%
0.7%
5.0%
3.0%
SOURCE DATA FOR ANNEX 2 – FDI (OUTWARD) STOCKS
Wholesale and retail trade, repair
Hotels and restaurants
Transportation, storage and communications
Finance and insurance
Real estate
Renting
Computer activities
Research and development
Other business activities
8.1%
0.9%
6.2%
32.2%
2.5%
1.5%
1.3%
0.4%
47.0%
SOURCE DATA FOR ANNEX 2 – EXPORTS OF SERVICES (MODES 1, 2 AND 4)
Manufacturing services on physical inputs owned by others
Maintenance and repair services n.i.e.
Transport
Travel
Construction
Insurance and pension services
Financial services
Intellectual property
Telecom., computer & information serv.
Other business services
Personal, cultural & recreational services
Government
1.5%
0.8%
24.4%
23.4%
2.6%
4.2%
3.2%
6.9%
4.9%
24%
1.2%
2.7%
179
SOURCE DATA FOR FIGURES IN ANNEX 4
Code
50T52: Wholesale and retail
trade; repairs
55: Hotels and restaurants
60T63: Transport and storage
64: Post and
telecommunications
65T67: Finance and insurance
70: Real estate activities
71: Renting of machinery and
equipment
72: Computer and related
activities
73: Research and development
74: Other Business Activities
75: Public admin., defence,
social security
80: Education
85: Health and social work
90T93: Other services
Agriculture
Australia
OECD
World
Australia
Mining
OECD
World
Manufacturing
Australia
OECD
World
Services (incl. utilities)
Australia
OECD
World
Total economy
Australia
OECD
World
-5.94
-2.75
-2.52
-8.66
-5.89
-6.13
-7.76
-5.08
-4.71
-19.85
-17.56
-18.73
-16.97
-14.06
-13.84
-7.55
-1.39
-8.17
-0.74
-9.10
-1.48
-2.94
-11.60
-2.26
-8.61
-2.71
-10.02
-3.54
-5.39
-3.08
-3.66
-3.13
-4.03
-4.17
-12.52
-5.65
-9.08
-5.95
-9.86
-4.06
-11.15
-5.02
-7.59
-5.17
-7.92
-0.53
-0.29
-0.26
-1.80
-1.15
-1.10
-2.18
-1.15
-1.07
-6.02
-4.51
-4.21
-5.04
-3.56
-3.09
-0.46
-0.66
-0.44
-0.49
-0.62
-0.44
-1.33
-1.98
-1.50
-2.19
-1.46
-1.75
-0.77
-1.69
-1.27
-1.37
-1.25
-1.20
-10.51
-14.70
-11.40
-13.76
-11.09
-12.10
-8.20
-11.58
-8.58
-10.32
-7.66
-8.32
-0.03
-0.09
-0.07
-0.16
-0.36
-0.29
-0.04
-0.28
-0.22
-0.02
-1.65
-1.39
-0.04
-1.27
-0.98
-0.06
-0.11
-0.14
-0.22
-0.34
-0.34
-0.09
-0.43
-0.43
-0.07
-1.99
-1.80
-0.08
-1.55
-1.31
-0.07
-1.79
-0.06
-1.02
-0.20
-1.12
-0.37
-3.76
-0.22
-3.52
-0.41
-3.19
-0.09
-3.62
-0.23
-3.11
-0.29
-3.06
-0.04
-18.40
-0.48
-13.47
-0.79
-11.81
-0.07
-14.82
-0.40
-10.56
-0.62
-8.72
-1.43
-1.74
-2.21
-4.55
-7.76
-6.48
-3.45
-4.67
-4.29
-8.29
-13.43
-13.77
-7.16
-10.99
-10.48
-0.88
-1.24
-2.66
-0.80
-1.78
-1.03
-1.07
-2.42
-1.30
-1.94
-4.02
-3.12
-1.89
-3.37
-2.52
-2.48
-3.81
-2.63
-1.50
-1.95
-2.46
-1.41
-3.77
-2.27
-1.60
-3.67
-2.31
-4.95
-7.26
-7.13
-5.66
-10.80
-7.75
-6.15
-9.56
-7.25
-4.14
-6.11
-6.06
-4.47
-8.81
-6.21
-4.58
-7.48
-5.52
180
SOURCE DATA FOR FIGURES IN ANNEX 5
AUSTRALIA, 2009
01-99
10-33
45-99
Average
wage
499
527
507
454
45-82
84-99
503
513
100.8
102.9
321
522
589
1347
565
64.4
104.8
118.1
270.1
113.4
ISIC Rev.4
Sector
Total economy
Manufacturing
Total services
Other industries
Blank (Graph spacing)
Market services
Non-market services
Blank (Graph spacing)
Trade; accommodation and food services
Transport and storage
Information and communication
Finance and insurance
Real estate, renting and business act.
45-47; 55-56
49-53
58-63
64-66
68-82
Index
total economy =100
105.7
101.6
91.1
UNITED STATES, 2011
01-99
10-33
45-99
Average
wage
4523
5879
4419
4221
45-82
84-99
4593
4201
101.6
92.9
45-47; 55-56
49-53
58-63
64-66
68-82
3067
4588
8127
8551
5152
67.8
101.4
179.7
189.1
113.9
ISIC Rev.4
Sector
Total economy
Manufacturing
Total services
Other industries
Blank (Graph spacing)
Market services
Non-market services
Blank (Graph spacing)
Trade; accommodation and food services
Transport and storage
Information and communication
Finance and insurance
Real estate, renting and business act.
Index
total economy =100
130.0
97.7
93.3
CANADA, 2009
ISIC Rev.4
Sector
Total economy
Manufacturing
Total services
Other industries
Blank (Graph spacing)
01-99
10-33
45-99
181
Average
wage
4782
6029
4620
5442
Index
total economy =100
126.1
96.6
113.8
ISIC Rev.4
Sector
Market services
Non-market services
Blank (Graph spacing)
Trade; accommodation and food services
Transport and storage
Information and communication
Finance and insurance
Real estate, renting and business act.
45-82
84-99
45-47; 55-56
49-53
58-63
64-66
68-82
Average
wage
4280
5192
Index
total economy =100
89.5
108.6
3063
5289
6813
7118
4674
64.0
110.6
142.5
148.8
97.7
UNITED KINGDOM, 2010
01-99
10-33
45-99
Average
wage
2552
3911
2450
2263
45-82
84-99
2413
2506
94.6
98.2
45-47; 55-56
49-53
58-63
64-66
68-82
1821
3013
4258
5308
1974
71.4
118.1
166.9
208.0
77.4
ISIC Rev.4
Sector
Total economy
Manufacturing
Total services
Other industries
Blank (Graph spacing)
Market services
Non-market services
Blank (Graph spacing)
Trade; accommodation and food services
Trade; accommodation and food services
Information and communication
Finance and insurance
Real estate, renting and business act.
182
Index
total economy =100
153.3
96.0
88.7
SOURCE DATA FOR FIGURES IN ANNEX 7
Transport
Travel
Construction
29.6
1.19
23
-15
52.8
3.85
-27
-28
0.9
0.23
62
JAPAN
Market size (%)
Share of AUS in IMP
Growth of total imports
Growth of imports from AUS
Transport
Travel
Construction
4.9
0.29
50
2
91.2
8.25
29
90
0.0
0.00
332
KOREA
Market size (%)
Share of AUS in IMP
Growth of total imports
Growth of imports from AUS
Transport
Travel
Construction
INDIA
Insurance
and pension
services
Financial
services
Charges for
the use of
intellectual
property n.i.e.
Telecom.,
computer, and
information
services
Other
business
services
Personal,
cultural, and
recreational
services
Government
goods and
services n.i.e.
Total
services
1.3
0.38
258
78
3.4
2.00
25
339
1.9
0.20
31
316
1.4
0.52
70
-53
7.5
0.33
74
37
0.8
1.58
-12
-22
0.5
0.56
12
35
100.0
1.13
26
-17
Insurance
and pension
services
Financial
services
Charges for
the use of
intellectual
property n.i.e.
Telecom.,
computer, and
information
services
Other
business
services
Personal,
cultural, and
recreational
services
Government
goods and
services n.i.e.
Total
services
0.6
1.65
-6
112
0.1
0.23
280
-32
0.2
0.04
60
103
0.4
0.49
55
-37
1.9
0.10
123
-31
0.3
0.60
115
103
0.2
0.27
55
35
99.9
1.78
69
75
Insurance
and pension
services
Financial
services
Charges for
the use of
intellectual
property n.i.e.
Telecom.,
computer, and
information
services
Other
business
services
Personal,
cultural, and
recreational
services
Government
goods and
services n.i.e.
Total
services
Market size (%)
1.1
93.5
0.0
0.4
0.1
0.9
1.9
1.5
0.4
0.1
100.0
Share of AUS in IMP
0.04
15.09
0.09
0.14
0.04
0.69
1.32
0.13
0.37
1.78
Growth of total imports
171
122
88
160
320
117
88
81
164
-2
164
845
103
0.14
348
267
454
-68
143
1
136
Growth of imports from AUS
116
183
OTHER SOUTH
EAST ASIA
Market size (%)
Share of AUS in IMP
Growth of total imports
Growth of imports from AUS
Transport
Travel
Construction
Insurance
and pension
services
Financial
services
Charges for
the use of
intellectual
property n.i.e.
Telecom.,
computer, and
information
services
Other
business
services
Personal,
cultural, and
recreational
services
Government
goods and
services n.i.e.
Total
services
15.5
1.35
67
21
58.9
8.16
91
84
0.2
0.74
17
230
0.7
0.61
109
127
2.4
2.77
156
90
1.9
0.70
71
440
2.4
2.09
137
71
15.4
2.16
110
130
1.5
11.81
-50
93
1.1
6.56
68
25
100.0
2.91
71
76
184