Micro data linking Michael E. Nielsen & Jon Mortensen EU Twinning Project: Globalisation Statistics State Statistics Service of Ukraine, 28 April 2015

 An evolving national data warehouse  Micro data linking  TEC  Project for Nordic Council of Ministers Outline 2

 Increased demand for micro data linking from researchers and policy makers  Added value of collected, existing data – without raising respondent burden  Question is not “what do countries trade?” but “what kind of enterprises trade?” (size, activity, ownership etc.)  Empirical evidence shows that:  Enterprises are not homogeneous but heterogeneous.  Globalised enterprises are “better” than non-globalised ones, and  “The happy few” are heterogeneous too  Positive feed-back loop  Micro linking of data reveals that globalised enterprises are the sort of enterprises policy makers want to promote and nurture  more detailed knowledge needed  demand for more micro data linking An evolving national data warehouse: Why? 3

An evolving national database: - Addressing the stove pipe approach 4 Foreign trade (Services) Foreign trade (Goods) FATS Inward International sourcing Business Register Accounts Statistics FATS Outward

 Methodological issues  Complex enterprises, demographic events  analytical pitfalls  Revisions  Time consuming as tables are “handmade”  Confidentiality  Non-automated, time consuming, sensitive to multidimensional disaggregation  Data timeliness  t+18, t+10?, t+16?, Quality?  Resources  No additional burden on reporters. Producers, however… …thus creation of the national data warehouse is an ongoing, step-by-step process mostly driven by external funding General challenges 5

Linking trade in goods and enterprise statistics 6

 Exporting enterprise: An enterprise with an export of goods of  at least DKK 37,500 (EUR 5,000) and  accounting for at least 5 per cent of the enterprise’s turnover (in a given year)  Other enterprises:  Enterprises with export of goods below threshold/cut-off  Enterprises with no export of goods Exporting enterprises 7

Matching SBS and international trade in goods 8 Output from national databases Exporting enterprises Enterprises with export of goods below threshold Enterprises with no export of goods All enterprises (SBS)

Matching SBS and international trade in goods 9 Output from national databases. 2012

 Datasets are compiled by linking micro data from trade registers with business registers  Aims at describing trade flows from the view point of enterprises:  Characteristics of importing/exporting enterprises  Involvement of different industries in international trade  Involvement of small and medium enterprises (SMEs) in international trade  Impact of international trade on employment, growth and income  Effectiveness of export-promotion policies Trade by Enterprise Characteristics (TEC): New statistical domain 10

 First discussions started in late 1990s  However, more concrete objectives and methodological development during last 10 years  Methodology and indicators developed by Eurostat in co-operation with the EU Member States  The revised Intrastat and Extrastat Regulations include a module on TEC  Mandatory compilation from reference year 2009  Currently data from  data collected on voluntary basis TEC: project history 11

 Mandatory  Trade by activity (NACE) and enterprise size class  Concentration of trade by activity  Trade by partner country and activity  Trade by number of partner countries and activity  Trade by commodity (CPA) and activity  Voluntary  Trade by type of trader (one-way, two way)  Trade by ownership  Trade by export intensity  Trade by activity sectors  Trade by partner countries and size-class TEC: indicators 12

TEC: General findings 13

Number of Danish enterprises with trade/ percentage of total TEC: Danish results 14

TEC: Danish results – 15 Exporters by size-class

Number of danish enterprises trading with Ukraine (2013) What about Ukraine? 16 Exporters Total779 Top 5 industries Wholesale trade, except of motor vehicles259 Manufacture of machinery and equipment n.e.c.112 Wholesale and retail trade and repair of motor vehicles83 Manufacture of computer, electronic and optical products44 Manufacture of food products38 Importers Total315 Top 5 industries Wholesale trade, except of motor vehicles111 Retail trade, except of motor vehicles and motorcycles29 Manufacture of machinery and equipment n.e.c.27 Manufacture of computer, electronic and optical products17 TRANSPORTATION AND STORAGE16

 Still negotiated but…  SDMX (from 2015?)  Early publication of preliminary data to be revised later -Currently t+18 months, may become t+10 and t+16  Voluntary tables may become mandatory  TEC likely to become more important/ attract more focus (from Eurostat, other DCs, OECD) …  …and more demanding to compile Future/FRIBS 17

 Project for the Nordic Council of Ministers  Nordic NSIs, coordinated by STATDK  Nordic Council of Ministers project 18

Output from the Nordic project 19 Report available at:  Focus on  Exports, goods, enterprises  Strongholds – markets, products  Role of SMEs  Performance of on BRIC, Next-11, US markets  Existing trade data + new national databases

Market position for the Nordic countries 20 Benchmark: Share of EU-27 export of goods Based on Eurostat database on international trade (tables DS and DS ).

Distributed micro data research in the Nordic project: How? 21 1) Guidelines for database 2) SAS code for execution 3) Standardised output tables for analysis

Database contents Foreign Trade Markets (BRIC, Brazil, etc.) Products (Pharmaceuticals, Fish, etc.) New database Enterprises Activity Nationality Size class Employment Turnover Gross value added 22

What is the role of SMEs in Nordic goods exports? 23 Output from national databases. Enterprises in manufacturing and wholesale. 2011

How are SMEs, large enterprises performing? 24 Output from national databases. Exports of goods of enterprises in manufacturing and wholesale. 2011

Main markets of Danish SMEs, large enterprises? 25 Large enterprises 1. Germany 2. United Kingdom 3. United States 4. Sweden 5. China (incl. HK) 6. Norway 7. Netherlands 8. France 9. Italy 10. Spain Large enterprises 1. Germany 2. United Kingdom 3. United States 4. Sweden 5. China (incl. HK) 6. Norway 7. Netherlands 8. France 9. Italy 10. Spain Output from national database. Enterprises in manufacturing and wholesale SMEs 1. Germany 2. Sweden 3. Norway 4. United Kingdom 5. Netherlands 6. France 7. United States 8. Finland 9. China (incl. HK) 10. Poland SMEs 1. Germany 2. Sweden 3. Norway 4. United Kingdom 5. Netherlands 6. France 7. United States 8. Finland 9. China (incl. HK) 10. Poland

Danish SMEs, large enterprises’ main export products to China (incl. HK)? 26 Large enterprises 1. Hides, skins, furskins 2. Med., pharmaceutical products 3. G’ral industrial machinery, equipment, parts 4. Power-g’rating machinery, equipment 5. Professional, scientific, controlling instruments Large enterprises 1. Hides, skins, furskins 2. Med., pharmaceutical products 3. G’ral industrial machinery, equipment, parts 4. Power-g’rating machinery, equipment 5. Professional, scientific, controlling instruments Output from national database. 2-dg. SITC. Enterprises in manufacturing and wholesale SMEs 1. Meat, meat preparations 2. Telecom, sound-recording, reprod. apparatus, equipm. 3. G’ral industrial machinery, equipment, parts 4. Fish… 5. Machinery specialized for particular industries SMEs 1. Meat, meat preparations 2. Telecom, sound-recording, reprod. apparatus, equipm. 3. G’ral industrial machinery, equipment, parts 4. Fish… 5. Machinery specialized for particular industries

Where do SMEs have high shares of Danish export of goods? 27 Output from national database. Enterprises in manufacturing and wholesale. 2011

Thank you for your attention! Michael E. Nielsen Jon Mortensen