Balance of Payments Division Statistics Canada Statistics Canada Programmes Addressing Globalization Art Ridgeway Balance of Payments Division July 2007

Balance of Payments Division Statistics Canada Organization A highly centralized statistical system –Full range of social and economic statistics Economic statistics divided into two part: –Business and trade statistics Structural surveys, merchandise trade and prices –National accounts and analytical studies National accounts, which includes –Balance of payments –Government financial statistics Analytical studies and current analysis 2

Balance of Payments Division Statistics Canada Corporations Returns Act Separate law (not Statistics Act) –directory of inter-corporate ownership showing “who owns who" in Canada Annual report to Parliament on the foreign ownership and control of Canadian businesses Country of ultimate control 3

Balance of Payments Division Statistics Canada Foreign Direct Investment Limited detail for quarterly –Balance of Payments, and –International Investment Position Detailed position data - annually the net stock of FDI assets has been positive since 1997 –outward FDI in around 150 countries –FDI in Canada from about 100 countries 4

Balance of Payments Division Statistics Canada Foreign Affiliate Trade Statistics Limited progress in this area –Annual program linked to FDI survey –Outward data on the sales of goods and services and employment only Limited data on inward to date –See globalization project below 5

Balance of Payments Division Statistics Canada Trade in Services Publish international trade in services data for –32 service commodities –60 countries and regions Three-year project to improve the data for international trade in services –Coverage improvement, particularly with respect to small and medium sized businesses –Aim to have annual provincial breakdown of Canada’s imports and exports of services by commodity 6

Balance of Payments Division Statistics Canada Trade in Goods: Exporter/Importer Registers Links customs data with the Business Register to provide demographics on trading enterprise Exporter Register database –value of merchandise exports for 1993 to 2005 period Importer Register database –currently available for 2000 –data for will be available this year Union of the Exporter and Importer databases –Insights into import content in exports 7

Balance of Payments Division Statistics Canada Trade in Intellectual Property: Licenses for Patents, Trademarks and Copyrights Technological balance of payments –includes payments and receipts for the acquisition and use of patents, licenses, trademarks, designs, know-how and closely associated technical services, as well as for research and development services Reconciled with balance of payments –to identify firms that purchase R&D services but perform no R&D themselves 8

Balance of Payments Division Statistics Canada Analytical Studies In-house personnel and external researchers –economic performance of multi-national enterprises –innovation related to multi-national enterprises –offshoring and outsourcing A survey paper covering research on multi- national enterprises is being prepared –It will review Statistics Canada’s work in this area over the past quarter century 9

Balance of Payments Division Statistics Canada Globalization Project Statistics Canada has initiated a globalization indicators project in response to the OECD Handbook –Canadian multinational enterprises Global Value Chains Data Development – Feasibility Study –currently drafting questions for testing in autumn

Balance of Payments Division Statistics Canada Commercialization A pilot survey of commercialization in Canada for reference year 2006 How are new developments brought to market? –for projects undertaken in Canada and commercialized there and –for projects developed by Canadian firms outside the country to exploit new markets 11

Balance of Payments Division Statistics Canada Business Register presently under redevelopment –additional emphasis is being put on recording the international links between Canadian businesses and their foreign parents or subsidiaries Multi-national enterprises clearly identified –foreign MNE, Canadian MNE, and non-MNE –importers, exporters, both, or neither 12

Balance of Payments Division Statistics Canada International Labour Supply and Remittances These are challenges for Canada –Relatively weak data sources –Rely on a number of households surveys –Questions added over the past year Increasing use of temporary workers –Primarily from Mexico and Caribbean –Recently more from eastern Europe 13

Balance of Payments Division Statistics Canada General Business Survey A pilot survey in with expectation of a full survey in Use, implementation and impact of business strategies in large firms In due course, expected to support longitudinal analysis 14

Balance of Payments Division Statistics Canada Conclusion – 15