The French statistics on enterprise groups and the globalization Raoul Depoutot, INSEE, FRANCE Dominique Francoz, INSEE, FRANCE Présentation de l’enquête liaisons financières qui permet : de déterminer le périmètre des groupes d’entreprises et par appariement avec les fichiers SUSE de savoir ce que font les groupes en France.

The economic context Restructuring of economic activity Globalization Outsourcing

Outline of the presentation The statistical system to observe enterprise groups The economic use to follow up the globalization The ongoing projects

The organization of information on enterprise groups

The survey on FInancial LInks (LIFI) The target population : Firms reaching one of the following criteria : Total amount of equity interest > 1,2 M€ Number of employees > 500 Turnover > 30 M€ Head of an enterprise group directly controlled by a foreign corporation

The survey on FInancial LInks (LIFI), cont’d Information included in the questionnaire : Identification characteristic of the surveyed firm Information on the shareholders Information on the affiliates or subsidiary of the firm

The survey on FInancial LInks (LIFI), cont’d Variables included in the questionnaire :

The LIFI survey, cont’d Designing each group of enterprises Statistical unit : enterprise group Definitions : Enterprise group Head of the group Core of the enterprise group Extended enterprise group 100 % 40 % S4 S1 S2 S3 S5 S12 S11 30 % 20% 80 % Source : Insee Poitou-Charentes – Service statistique – Pôle national « Liaisons Financières »

The survey on FInancial LInks (LIFI), cont’d Need to complete this information Enlarge the target population Have more information on foreign activity (foreign affiliates and foreign parent companies) Add economic variables

The LIFI survey, cont’d : France F2 Abroad F1 G1 E2 E3 ? F3 Dree Diane If F1 surveyed ? E1 F3 F2 F1 G2 G1 Trésor Source : Insee Poitou-Charentes – Service statistique – Pôle national « Liaisons Financières »

DIANE To enlarge the target population Private database edited by COFACE SCRL and BVD Information published by the French corporation courts Data on small firms

The DREE survey To better cover the affiliates abroad Survey on French affiliates followed up by the commercial offices in the French Embassies To have information on the ultimate host To have economic information on the French affiliates abroad (turnover, employees)

The Treasury Board information To better cover the foreign parent companies Administrative information To have information on the ultimate beneficial owner To better attribute a citizenship to the firms under foreign control

The SUSE data To include economic data Result of both administrative and survey data At the level of legal units Available : Income statement Balance sheet Main activity code Breakdown of sales by product Workforce characteristics

Some results …

The use of the LIFI data in the economic analysis of globalization The weight of foreign firms in the economic activity

Breakdown of resident corporations (France – 2002)

Development of the foreign controlled economy

The use of the LIFI data in the economic analysis of globalization The weight of foreign firms in the economic activity Globalization and outsourcing of French activity

The use of the LIFI data in the economic analysis of globalization RoW France Indep. 100% Fr EGs 3.5 Foreign Millions of Employees

The current and future developments To consider enterprise groups as statistical units To define economic entities in the frame of group which will be the collection units (profiling) To develop a statistical register of EGs To produce consolidated economic data on EGs To integrate the EG as a data collection unit

The current and future developments, cont’d To develop a statistical register of EGs To define the continuity of EGs Develop relevant concepts for EGs demography Analyze the result of mergers / split off To coordinate with other French statistical offices To improve the registration of foreign corporation (abroad)

The current and future developments, cont’d To produce consolidated economic data on EGs To avoid double counts on some variables (Financial assets, sales)

The current and future developments, cont’d 2500 6000 200 1500 300 S3 S1 500 S2b 250 150 Consolidation of sales:    S2 = Economic flow

The current and future developments, cont’d To produce consolidated economic data on EGs To avoid double counts on some variables (Financial assets, sales) To have a better information of the international activity of MNEs

To produce consolidated economic data on EGs : an example

The current and future developments, cont’d To produce consolidated economic data on EGs : some difficulties Not compatible with the national territory No currently available for many EGS National sub-consolidation expansive

The current and future developments, cont’d To integrate the EG as a data collection unit A first experience : the survey on intangible assets (R&D and innovation, patents and licensing, marketing)

Thank you for your attention Insee Poitou-Charentes – Service statistique – Pôle national « Liaisons Financières »