THE IMPORTANCE OF STATISTICS ON TRADE IN SERVICES Australia Indonesia Partnership for Economic Governance THE IMPORTANCE OF STATISTICS ON TRADE IN SERVICES by Ramonette B. Serafica

Outline Background Basic concepts and trends Various user needs for services statistics (trade and others)

What are services?

How important are services? HIC WLD UMC LMC LIC Source of data: http://data.worldbank.org/

What are its characteristics? Intangible Non-storable Variable Proximity Different ways to trade – four modes of supply

How are services traded? Cross-border trade The service (1) , the consumer or his/her property (2), or the supplier (4) crosses the border Trade by foreign affiliates The service is supplied through the establishment of commercial presence (3) in the host country

Trends in services trade Source of data: http://www.wto.org/english/res_e/statis_e/statis_e.htm

Commercial Services (World) Source of data: http://www.wto.org/english/res_e/statis_e/statis_e.htm

Growing share of Asia in services trade Source: Asian Development Outlook 2012 Update Services and Asia’s Future Growth (ADB 2012)

Mode 3 is significant http://www.bea.gov/international/international_services.htm#summaryandother (Table A. Services Supplied to Foreign and U.S. Markets Through Cross-Border Trade and Through Affiliates)

Uses of data and statistics Policy analysis and formulation Negotiations (trade & investment) Stakeholder engagement Monitoring & Evaluation of initiatives

Policy analysis and formulation Example: Sector development Trade performance (what if not a major category in EBOPS? e.g. environmental services) Other indicators such as labor productivity, prices, quality, variety, and access Inter-sectoral linkages (backward & forward linkages)

Negotiations (trade & investment) Example: Assessment of export and import interests across 160 services sub-sectors and 4 Modes of Supply (MOS) Priority sub-sectors and MOS to request MA/NT commitments Priority sectors for investment, technology transfer, capacity building/technical cooperation

Stakeholder engagement Example: The contribution of foreign companies to the economy Domestic employment generated and compensation of employees Value-added Purchases of local goods and services R&D expenditures

M&E of initiatives Example: Assessment of the effectiveness of initiatives for SME service exporters Determine baseline and set specific targets for increasing the number of service exporters Track and analyze growth of SME service exporters by sector, by destination

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