New Zealand’s International Trade Towards an integrated approach February 2011

Outline Institutional arrangements International frameworks International trade in services survey Longitudinal business database Options for further integration. 2

Institutional arrangements Overseas Merchandise Trade Based in Christchurch Part of Industry and Labour Statistics area Monthly release of statistics Works closely with New Zealand Customs Service Solely use administrative data. 3

Institutional arrangements Services data collected by Balance of Payments Based in Wellington Part of Macroeconomic and Environment Statistics Quarterly release of goods and services statistics Enterprise surveys –international trade in services –goods on consignment No plans to integrate these two areas. 4

Framework BoP goods and services on a BPM5 basis BPM6 work planned from Priorities within BPM6 implementation, and extending into MSITS 2010, must be user driven Key users are interested in a more integrated approach. 5

International trade in services survey (ITSS) Full coverage for June 2011 year as extracted from the Statistics NZ Business Frame Joint survey with Ministry of Foreign Affairs and Trade (MFAT) co-funded share unit records declaration of secrecy input into questionnaire design. 6

ITSS redesign New questions likely to include: contract manufacturing fees for processing goods sales of goods manufactured abroad published software delivered electronically EBOPS and GATS W120 updates mode of supply: “How were these services delivered?” 7

ITSS dissemination Data incorporated into BoP current account Stand alone ‘commercial services’ report to be published in February 2012 will include: detailed categories partner country and economic groupings industry breakdowns Longitudinal Business Database (LBD). 8

What is the LBD? A longitudinal dataset of integrated business- related data Prototype created in December 2007 Aim is to produce new information from existing data and without additional respondent burden. 9

Structure of the LBD Microsoft SQL server database Aggregates input data to give yearly information at enterprise level for each data source Can be easily queried from SQL or SAS 150 gigabytes in size (including 10 gigabytes of indexes). 10

What’s in the LBD? 11 Longitudinal Business Frame Contains longitudinally linked data for most enterprises operating in NZ. Includes information on: employment location industry ownership relationship Allows individual business to be tracked over time. Administrative data Annual Enterprise Survey Business Operations Survey Manufacturing and Energy Use Survey Business Finance Survey Research and Development Survey International Trade in Services and Royalties Survey data Goods and services tax data Financial accounts (IR10) Company tax returns (IR4) Linked Employer Employee Database Overseas merchandise trade Government assistance data Longitudinal Business Database

Protocols for using the LBD Integrating data raises issues around privacy, confidentiality, and security access is granted to government employees for research purposes non-departmental research access is by secondment anonymised data accessed only through the Data Lab outputs subject to confidentiality checks. 12

Initial research results MFAT initiated and funded integration of the ITSS into the LBD Comparisons of goods and services exporters employee count foreign ownership profit productivity market analysis. 13

Examples of research Exporting and firm performance Entrepreneurship and trade growth Exporters’ currency hedging behaviour Export market choices of New Zealand firms LBD homepage 14

Where to from here for the LBD? Work in progress – new datasets can be added Add International Investment Survey data – possible foreign affiliate statistics From existing LBD datasets: Impact of exchange rate volatility on exporters Intensive v extensive exporting Global financial crisis analysis 15

Options for further integration More detailed BoP goods Increasing bilateral data for services to allow presentation of total goods and services trade No plans for: intra-group trade in goods and services integrated industry-based presentation. But… new opportunities may arise! 16

Thanks! »Matthew Haigh »Project Manager: BoP Commerce & Development »Statistics New Zealand » »Phone: »Yolandi de Beer »Statistical Analyst: Business Infrastructure & Performance »Statistics New Zealand » »Phone: