1 How to go beyond BPM in SITS October 1-3, 2008 Shin-Tsyr Jing Associate Research Fellow Chung-Hwa Institution for Economic Research

2 Purposes Service industry plays important roles in economic development and employment in Chinese Taipei We do not have sufficient statistics for the needs of trade negotiators and policy markers In order to break through this predicament, we did some experiments in past three years That is what I want to talk about today

3 Background Information 1 In 2007, service industry output reached NT$8.9 trillion (roughly US$ billions), accounting for 71.1% of GDP Service industry job-creation level is 5.96 millions jobs, accounting for 57.9% of total employment Production in the services industry grew 4.3 percent in 2007 Service international receipts increased to US$30,642 million, and service international payments rose to US$36,068 million However, we do not have separate transaction data with other countries in details

4 Background Information 2 Central Bank － collects 11 service sectors and some sub-sectors statistics, but insufficient for the needs of trade negotiations & policy markers The Investment Commission of the Ministry of Economic Affairs － collects FDI statistics, not collect the domestic sales by foreign affiliates The Bureau of Employment and Vocational Training, Council of Labor Affairs － collects short-term employment of foreign staff statistics

5 Experiments on Compiling Statistics for the GATS Modes of Supply Pick up the target sectors Find the population Collect the current available information of statistics Clarification of service industry classification Survey Questionnaire Content Sample Selection Trade in Services Statistics Instruction Manual

6 Pick up the target sectors Find the population Pick up the target sectors  Telecommunications, insurance and maritime service sectors  Licenses and highly regulation  It is relatively easy to survey them with the help from the government authorities Find the population  The DGBAS in Chinese Taipei － update the population of all industries once for 5 years  Each government authority － collects specific service- sector’s population

7 Collect available statistics Clarification of service industry classification Collect the current available information of statistics  Capital, foreign capital share, revenues, expenses, sale, etc from all possible sources  Import/export data not available Clarification of service industry classification  Build a correspondence table － GNS/W/120 components and our standard service industry components

8 Survey Questionnaire Content  Basic information  Business, investment, and employment statistics sales/purchases in total and countries, FDI, gross operating revenues/expenses in subsidiaries and branches abroad, total number of employees/total employee compensation  Opening questions work content and title of foreign employees, investment barriers, needs of the government assistance

9 Sample Selection  Special permission service sectors － the method of complete survey  Others － the method of sampling survey Current available data Program of the Chi-sqare Automatic Interaction Detection, CHAID, to divide the population into a set of target groups Proportionate quota sampling Field workers interview

10 Instruction Manual Trade in Services Statistics Instruction Manual  Trade in services statistics instruction manual  Manual content Introduction Clarification of service industry classification Inspection of the existing official business statistical data Investigation action program Analyses of survey results

11 Thank you