Global Value Chains and International sourcing status quo Pekka Alajääskö

International sourcing - micro data linking Global Value Chains and International Sourcing Methodological development project International organisation and souring of business functions –survey A framework for measurement and narrative of global value chains and economic globalization Future projects on micro data linking Workshop

International sourcing micro data linking In 2009 Eurostat launched a project on linking data at enterprise level from IS survey, SBS and ITGS Organisational set-up for the micro data linking worked well High matching rates between IS and SBS and between IS and ITGS

International sourcing micro data linking Joint questionnaire design and synchronised micro data linking facilitated the data comparability across the participating countries Micro data linking took place in participating countries: enterprise level data stayed in the participating countries aggregated data sets were provided to Eurostat

International sourcing micro data linking There are some problematic issues to be tackled in future projects; e.g. how to deal with demographic events like mergers and acquisitions vs. organic growth The size of populations can furthermore hamper micro data-linking, so there is a need to better co-ordinate samples across different business surveys

Global Value Chains and International Sourcing Methodological development: New questionnaire covering international sourcing and global value chains was developed Project generated new and useful experiences in questionnaire development and testing simultaneously in several Member States Project laid the ground for the ESSnet and International organisation and souring of business functions –survey Furthermore it is significantly supported Eurostat's and participating countries' focus and work on global value chains

International organisation and souring of business functions –survey Questionnaire is a result of a long development process by a group of countries and Eurostat During this process the questionnaire was tested in more than 100 enterprises The questionnaire includes 5 modules: General information Activities the surveyed enterprise International sourcing and relocation of business functions of the surveyed enterprise International organisation of activities in the foreign affiliates of the surveyed enterprise Contracted activities of the surveyed enterprise

International organisation and souring of business functions –survey Two additional modules were designed in the process: Future plans 2012-2015 of the surveyed enterprise Activities in the domestic affiliates of the surveyed enterprise Because of the length of the questionnaire and the nature of the modules it was decided that the additional modules would be optional

International organisation and souring of business functions –survey   Launch/ End No. enterprises Cut-off Mandatory Web Response rate France June/Oct 8000 50 Yes 72 Portugal May/Sept 1000 100 92 Netherlands May/Oct 2200 No 63 Romania April/Sept 3000 97 Slovakia Sept/Oct. 1500 95 Sweden August/Oct 42 Lithuania July/Oct 89 Latvia May/July 700 Estonia April/June 500 83 Ireland 1300 41 Belgium June 37 Norway 1400 96 Denmark 5000 98 Finland April/Oct 1200 85

International organisation and souring of business functions –survey Common methodology and definitions used in the survey contribute significantly to the harmonisation of output Very important feature of the survey is the use of business functions and the distinction between core and support business functions Question about the enterprise conception of their core business function has now been included in the questionnaire

ESSnet on measuring global value chains ESSnet is a network of European countries created and entrusted by Eurostat for a precise purpose ESSnet on measuring global started its work on September 1, 2011 and the work will last 28 months until the end of 2013. ESSnet is co-ordinated by Statistics Denmark Statistics Finland, INSEE France, CBS the Netherlands, SSB Norway, INE Portugal and INS Romania are the partners of the ESSnet

ESSnet on measuring global value chains There are 6 work packages in the ESSnet: globalisation indicators, with CBS NL as the lead NSI; GVC/IS survey support and methodological fine tuning, with Statistics Denmark and Finland as lead NSIs; further development of the micro data linking methodology and support of the implementation and production of linking data sets, lead by Statistics Denmark and CBS NL, "mirror statistics" analysis of Inward and Outward FATS, with SSB NO in the lead of the work package, analysis and dissemination of the survey and micro data linking results co-ordination, administration and organisation of meetings, and workshops. Denmark leads work packages 5 and 6

Framework for measurement and narrative of global value chains and economic globalization The objective of this work is to create a harmonized framework to measure economic globalisation The intention is to build upon the prior work by Eurostat on global value chains, international sourcing, and especially micro-data linking

Framework for measurement and narrative of global value chains and economic globalization The on-going work by Eurostat on ITS, FDI, BoP and FATS form important building blocks towards a harmonised framework The measurement framework will, among many things, identify existing data gaps and make proposals how to fill these data gaps

Future projects on micro data linking International organisation and sourcing of business activities -survey (GVC/IS) includes questions only on issues, on which information could not be provided by micro data linking Survey results will be linked with existing statistics such as SBS, FATS and ITGS.

Future projects on micro data linking Purpose of this project is to produce linked micro-datasets for impact analysis of international sourcing or internationally fragmented production chains on, for example, economic performance, employment and international trade in goods patterns of enterprises Project will be carried out in 2013

Future projects on micro data linking Eurostat has reserved financing in Eurostat's 2014 budget for a project linking micro data from business and trade statistics The purpose of the 2014 project is to extend the linking of ITGS (perhaps ITS), FATS, IS/GVC and Science Technology Innovation (STI) statistics with the whole business statistics population of SBS Project will start in 2014

Workshop on global value chains and economic globalisation A workshop on Global Value Chains including related issues from national accounts, business and trade statistics took place on October 9-10, 2012 in Luxembourg First draft of the above mentioned measurement framework was presented and discussed extensively Additionally, work packages and achievements of the ESSnet on measuring global value chains and also projects and policy initiatives of DG ENTR and DG TRADE were presented in the workshop

Workshop on global value chains and economic globalisation Eurostat's work on input-output tables and Commission funded research project WIOD were presented OECD presented the work done in co-operation with WTO on Trade in Value Added

Further developments (i) Academic paper on Global Value Chains commissioned by Eurostat and written by MIT professor Tim Sturgeon Proposed a framework for GVC and related data Identified the gaps in current statistics Starting from this Eurostat wants to fill the data gaps and proposes to develop integrated international data platform (IIDP)

Further developments (ii) The report describes the IIDP as a platform that “would include, among other things, full datasets on trade and FDI, including related party flags on all international transactions; full, accurate, and up-to-date enterprise ownership information, internationally linked enterprise IDs; administrative data sets adapted for statistical use, and new survey information on international sourcing and other critical topics, such as the internationalization of R&D and innovation.”

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