STD/PASS/TAGS – Trade and Globalisation Statistics Agenda Item 8a Linkages of trade and structural business statistics OECD progress report STD/PASS/TAGS – Trade and Globalisation Statistics Background • In the context of a globalized world economy, the demand for detailed information about the characteristics of trade operators is gaining more and more importance. •Trade data by size of enterprise, broken down by sector of activity, by export markets, and by location (e.g. region) would not only allow analyzing trade effects on employment and value added, but also identifying sectoral and/or regional performances. • Such an analysis requires data from two different statistical sources: business/industrial statistics and foreign trade statistics. 2 STD/PASS/TAGS – Trade and Globalisation Statistics Background • The usual key issue in this context is finding a common identifier between business and trade registers. While the EU Member States have shown a decent success in compiling sectoral trade statistics, the ability of Non-EU OECD member countries to perform a linkage exercise varies significantly between countries. • However, the positive reactions to the OECD pilot questionnaire from April 2005 encouraged the secretariat to head for a similar data collection approach as Eurostat, to avoid any duplicate work and to ensure consistency across OECD countries. 3 STD/PASS/TAGS – Trade and Globalisation Statistics Introduction • Upon invitation from Statistics Canada, the 1st Meeting of the Business Economic Statistics and Trade (BEST) Steering Group took place 19-21 June 2006 at Statistics Canada, Ottawa. •The 1st Steering Group meeting had very fruitful discussions and decided on the terms of reference, the name of the group, the general approach in terms of methodology and the installation of an electronic discussion group. •The next meeting of the Steering Group is scheduled to take place end 2007. 4 STD/PASS/TAGS – Trade and Globalisation Statistics Introduction • The project has been presented at the 2nd OECD Structural Business Statistics Expert Meeting (10-11 May 2007) and was supported by delegates. • Also representatives from some Non-OECD countries showed interest in the project. • Norway has already delivered results for 2003, according to OECD nomenclature. • OECD would especially appreciate the participation from Non-EU OECD candidate countries in this exercise, but also other nonOECD countries are invited to join the project they wish so... 5 STD/PASS/TAGS – Trade and Globalisation Statistics Electronic Discussion Group “B. E. S. T.” • A considerable number of methodological considerations and drawbacks have to be taken into account given the very different statistical systems in place in these countries. Therefore, the EDG B.E.S.T. will play a key role in enabling OECD and member countries to compile methodological recommendations. • The EDG has the following categories for input: – Methodologies (this category is pre-condition for the category ‘guidelines’), – Meetings (meeting documents and reports of meetings), – Guidelines (the development of a manual, suitable for Non-EU countries of the OECD, would be the optimum), – Globalisation (this category re-groups issues from the globalisation context which impact on the work of this group. For instance, intra-firm trade and multinationals), – Data and Indicators (this category is intended to assemble the basic data and indicators which have been compiled through this work). 6 STD/PASS/TAGS – Trade and Globalisation Statistics Electronic Discussion Group “B. E. S. T.” 7 STD/PASS/TAGS – Trade and Globalisation Statistics Electronic Discussion Group “B. E. S. T.” 8 STD/PASS/TAGS – Trade and Globalisation Statistics The first OECD Linkage Table (2007) Table I: Trade and Business Registers Population concerned 1) All trade operators Imports Exports Number of foreign trade operatorsi Trade coverage ii (%) Number of foreign trade 2) All trade operators except operators i incomplete or ii wrong ID numbers Trade coverage (%) Number of foreign trade i 3) Trade operators operators Number of enterprises / successfully iii matched with the establishments BR Trade coverage iv (%) This table gives an indication about the statistical relevance / significance of the results. The objective is, of course, to include a maximum of trade operators. Total number of enterprises in Business Register: i : as defined by the identification number. Includes only the above exemption threshold operators. : trade identified in the trade register, as a proportion of total trade. Total trade includes an estimation of below-thresholds trade. ii iii : as defined in the BR. For the difference between trade operator and enterprise, see the methodological introduction (annex). iv: trade identified in the trade register, and matched with the BR, as a proportion of total trade. Total trade includes an estimation of below-thresholds trade Population 1 includes all trade operators above the statistical transaction threshold. Population 2 includes all trade operators from population 1 except incomplete or wrong identification codes. Population 3 includes all trade operators from population 2 that can be succesfully matched with business register. NB: Table corresponds to Eurostat's Table 1 9 STD/PASS/TAGS – Trade and Globalisation Statistics Table II: Number of enterprises by economic sector and employment size class ISIC Rev.3.1 (2-digit level) Imports 0-9 10-49 Exports 50-249 250 or more 0-9 Unknown Number of employees Number of employees For a better interpretation of the resulting sectoral trade-by-enterprise-size class tables, background information about the ISIC Rev.3.1 (2-digit level) Total general05 structure of Etc. the enterprises in the 01 02 10 99 respective country is necessary (allocation of enterprises by number of employees and sector). Total 01 02 05 10 Etc. 99 Table IV: Number of enterprises by economic sector and employment size class Total 10-49 50-249 250 or more Unknown NB: Table corresponds to Eurostat's Table 2.3a Total NB: Table corresponds to Eurostat's Table 2.4a Table III: Trade (1000 US$) by economic sector and employment size class ISIC Rev.3.1 (2-digit level) Imports Total 01 02 05 10 Etc. 99 The figures of these tables indicate the Table V: Trade (1000 US$) by economic sector and employment size classproduced by enterprise size 10-49 trade values 50-249 ISIC Rev.3.1 (2-digit level) (in terms of number of employees). The Exports Total 250 or more 01 02 05 10 Etc. by ISIC 99 cross-tabulation classification Unknown 0-9 allows distinguishing the influence on Total 10-49 external trade of the big / medium / small 50-249 250 or more NB: Table corresponds to Eurostat's Table 2.3b enterprises by sectors. Number of employees Number of employees 0-9 Unknown Total NB: Table corresponds to Eurostat's Table 2.4b 10 STD/PASS/TAGS – Trade and Globalisation Statistics Table VI: Concentration of trade (1000 US$) ISIC Rev.3.1 (2-digit level) Imports TableC-E VII: Concentration ofOthers trade (1000 Total US$) G Top 5 enterprises Top 10 enterprises ISIC Rev.3.1 (2-digit level) Exports C-E Top 20 enterprises Top 50 enterprises G Others Total Top 5 enterprises Top 100 enterprises Top 10 enterprises Top 500 enterprises Top 20 enterprises Top 1000 enterprises Top 50 enterprises All enterprises Top 100 enterprises Top 500 enterprises These tables help to identify the degree in All enterprises which the top enterprises (in terms of trade value) determine the total trade / trade by sectors of the respective NB: Table corresponds to Eurostat's Table 3.4 country. Top 1000 enterprises NB: Table corresponds to Eurostat's Table 3.3 11 STD/PASS/TAGS – Trade and Globalisation Statistics Table VIII: Number of enterprises by partner zone Imports Partner country or zone Belgium Germany Greece Spain France Ireland Italy Luxembourg Netherlands Austria Portugal Finland Denmark Sweden United Kingdom EU15 Czech Republic Estonia Cyprus Latvia Lithuania Hungary Malta Poland Slovenia Slovakia Norway Switzerland Romania Bulgaria Turkey Russia Other European Countries North Africa Other African countries Canada NACE Rev. 1.1 (section level) Table X: Number of enterprises by partner zone C-E G Others Total ISIC Rev.3.1 (2-digit level) Exports Partner country or zone Belgium Germany Greece Spain France Ireland Italy Luxembourg Netherlands Austria Portugal Finland Denmark Sweden United Kingdom EU15 Czech Republic Estonia Cyprus Latvia Lithuania Hungary Malta Poland Slovenia Slovakia Norway Switzerland Romania Bulgaria Turkey Russia Other European Countries C-E G Others Total In contrary to the ‘classic view’ of foreign trade statistics (trade value by partner country) these tables concentrate on the question of how many enterprises (in which sectors) trade with which countries. In other words, it’s a look at the number of trade relations (by sectors) instead of a look at the value of trade relations. 12 STD/PASS/TAGS – Trade and Globalisation Statistics Table IX: Value of trade (1000 US$) by partner zone Imports Partner country or zone Belgium Germany Greece Spain France Ireland Italy Luxembourg Netherlands Austria Portugal Finland Denmark Sweden United Kingdom EU15 Czech Republic Estonia Cyprus Latvia Lithuania Hungary Malta Poland Slovenia Slovakia Norway Switzerland Romania Bulgaria Turkey Russia Other European Countries North Africa Other African countries Canada NACE Rev. 1.1 (section level) Table of trade (1000 Total US$) by partner zone G XI: ValueOthers C-E ISIC Rev.3.1 (2-digit level) Exports Partner country or zone Belgium Germany Greece Spain France Ireland Italy Luxembourg Netherlands Austria Portugal Finland Denmark Sweden United Kingdom EU15 Czech Republic Estonia Cyprus Latvia Lithuania Hungary Malta Poland Slovenia Slovakia Norway Switzerland Romania Bulgaria Turkey Russia C-E G Others Total The ‘classic’ view towards trade values by partner countries, but broken-down by ISIC sections of the traders. 13 STD/PASS/TAGS – Trade and Globalisation Statistics Table XII: Number of enterprises according to number of partner countries Imports ISIC Rev.3.1 (2-digit level) G Others Total 1 partner country Table XIV: Number of enterprises according to number of partner countries 2 partner countries ISIC Rev.3.1 (2-digit level) 3 partner countries Exports C-E G Others 4-5 partner countries 1 partner country 6-7 partner countries 8-10 partner countries 2 partner countries 11-13 partner countries 3 partner countries 14+ partner countries 4-5 partner countries 6-7 partner countries Unknown 8-10 partner countries Total 11-13 partner countries 14+ partner countries Unknown Total5.3a NB: Table corresponds to Eurostat's Table Number of partner countries Number of partner countries C-E These tables show the degreesTotal of (geographic) diversification by sectors in terms of number of partner countries and number of enterprises. Table XIII: Value of trade (1000 US$) according to number of partner countries Imports ISIC Rev.3.1 (2-digit level) NB: Table corresponds to Eurostat's Table 5.4a Number of partner countries Number of partner countries C-E G Others Total 1 partner country Table XV: Value of trade (1000 US$) according to number of partner countries 2 partner countries ISIC Rev.3.1 (2-digit level) 3 partner countries Exports C-E G Others 4-5 partner countries 1 partner country 6-7 partner countries 8-10 partner countries 2 partner countries 11-13 partner countries3 partner countries 14+ partner countries 4-5 partner countries 6-7 partner countries Unknown 8-10 partner countries Total 11-13 partner countries 14+ partner countries Unknown NB: Table corresponds to Eurostat's Total Table 5.3a Total These tables show the degrees of (geographic) diversification by sectors in terms of number of partner countries and value of trade. NB: Table corresponds to Eurostat's Table 5.4b 14 Table XVI: Trade (1000 US$) by commodity and economic activity Imports Exports 01 03 01 04 02 11 03 12 04 13 11 14 12 15 13 16 14 17 23 18 24 21 25 22 26 23 27 24 28 25 29 26 31 27 32 32 37 33 38 34 39 35 41 36 42 37 43 38 44 39 CPC 1.0 (2-digit level) CPC 1.0 (2-digit level) 36 53 Detailed cross-tabulation tables by CPC 1.0 (2-digit-level) and ISIC 3.1 (2-digitlevel). 31 35 52 99 29 34 51 Etc. 28 33 49 10 17 22 48 05 16 21 47 02 15 18 46 Total 01 02 45 STD/PASS/TAGS – Trade and Globalisation Statistics ISIC Rev.3.1 Table (2-digitXVII: level)Trade (1000 US$) by commodity and economic activity Total 01 02 05 ISIC Rev.3.1 10 (2-digit Etc. 99 level) 41 42 43 44 45 46 47 15 STD/PASS/TAGS – Trade and Globalisation Statistics Some results: Norway Norway: Concentration of exports (% ), by ISIC Sectors, 2003 97 97 92 92 100 90 85 79 80 % of total exports 71 70 60 65 60 57 5355 59 C-E G Others 39 38 Total 26 30 20 76 72 48 50 40 88 80 69 68 99 99 96 96 16 10 0 Top 5 Top 10 Top 20 Top 500 Top 100 Top 500 Top 1000 16 STD/PASS/TAGS – Trade and Globalisation Statistics Some results: Norway Number of enterprises according to number of partner countries (exports), in % of total enterprises, 2003 % of total enterprises 80 68 70 54 54 60 50 40 C-E 39 G Others 30 Total 16171416 20 9968 10 119 5 8 64 34 63 23 3212 10 2 24 co un tr i pa es r tn er co 14 un + tri pa es r tn er co un tr i es s 11 -1 3 810 pa r tn er ou nt r ie s 67 pa rtn er c ou nt r ie es 45 pa rtn er c er co un tri es 3 pa r tn er co un tri pa r tn 2 1 pa r tn er co un try 0 17 STD/PASS/TAGS – Trade and Globalisation Statistics Some results: Norway Value of trade according to number of partner countries (exports), in % of total trade, 2003 75 80 71 70 56 % of total trade 60 C-E 50 40 40 Others 27 30 G Total 20 12 10 6 14 3 12 1 2 43 3 33 13 2 811 8 3 9 7 98 9 5 s tri e un co er 14 -1 3 11 + pa r tn pa r tn er er co co un un tri tri es es tr i es 8- 10 pa pa rtn rtn er co un 7 6- pa rtn er co un tr i es s tri e un co 5 4- 3 pa r tn er co er pa r tn 2 1 pa r tn er co un un tri e s try 0 18 STD/PASS/TAGS – Trade and Globalisation Statistics The road ahead • The process of building up a new database on trade by enterprise characteristics has been put into motion now with the sending out of the first version of the OECD Linkage Table. • The next step consists in filling these out as much as possible by countries, identifying barriers to do so and clarifying concepts and definitions. This first stocktaking and initial combining of data is the obligatory first step before proceeding further. There is nothing OECD can do in this respect without the active participation of countries. • OECD has created the Electronic Discussion Group “B.E.S.T.” to provide a onestop-address for this work for collaborating countries. Both countries and OECD can now provide inputs; this is the immediate task for preparing the next meeting. The first inputs (methodology, data collection tables) have been provided, and the EDG is in the process of being populated. 19 STD/PASS/TAGS – Trade and Globalisation Statistics The road ahead [ctd] • Step-by-step, cleared concepts and definitions should be compiled in a pilot recommendations manual for adoption by countries. It seems advisable to make the recommendations sufficiently broad so that they can be also applied by other countries, for instance the Big 5 Non-Member countries of OECD. • After results from the first data collection will be available, OECD will set up (in close cooperation with Eurostat) a first set of OECD tables from the linkage exercise. • A 2nd B.E.S.T. meeting is scheduled to take place towards end 2007 to allow the United States to sufficiently advance in their work. It will be important to assess best practice and core requirements to proceed further. • A periodic review is planned to ensure that the project remains on track and is providing pertinent results. 20 STD/PASS/TAGS – Trade and Globalisation Statistics Delegates are invited to: • Comment on the project and -eventuallyvoice interest in active participation. • Non-EU countries are invited to comment on their possibility to compile data according to the standard table framework provided and flag scope for co-operation with OECD. 21