DSTI-EAS-IND-WPIA(2009)10 Norihiko YAMANO and Colin WEBB Directorate for Science, Technology and Industry WPTGS November 2009

I-O system A useful tool for international analyses 2 Input-output Supply and Use Globalisation International Outsourcing Fragmentation Vertical Specialisation Regional Integration Impact of Economic Crisis Technology Diffusion Environment Material Flows Embodied CO2 KLEMS Productivity (MFP)

OECD Input-Output tables Format –Symmetric Industry x industry: 48 sectors (max) –ISIC Rev. 3 industry classification –Import and domestic transactions are separated –Basic price valuation (1993 SNA) History –1995 edition : 10 countries ( ) –2002 edition: 24 countries (1995) –2006/09 edition : 40+ countries ( ) OECD -1 / Accession countries / BRIICS/ (G20 -1 ) –Many mid-2000 tables are preliminary. They will be replaced as national benchmarks become available … 3

Country coverage 4

Data sources available for OECD I-O 5

Linking I-O tables with bilateral trade Multi-regional Input-Output (MRIO): a powerful tool that links flows of goods and services across countries, revealing inter-dependencies and allowing n th degree effects of various global phenomena to be analysed... … but ideally requires best estimates of trade in intermediates (c.f. TAD paper and WIOD) … … which in turn requires adjustments and/or improvements to measured trade as published by international organisations …

Trade in goods – Data issues (WPTGS 2008) Re-exports –Trade discrepancies: Classic case = China /HK/USA Un-allocated trade data (confidential trade) –Could be concentrated in certain industries and partners Trade in second-handed goods –Not linked to recent manufacturing production Scrap and waste products –Some identified by HS, others not (e.g. PCs) I-O = SNA (i.e. BOP) v. Customs trade data Identifying domestic using industries –Standard HS to ISIC Rev. 3 conversion estimates imports from partners’ industries

Trade in services (BOP) – Data issues (WPTGS 2008) Limited availability of bilateral data Conceptual differences between EBOPS and Industry classification Particular measurement issues –Goods sent abroad for processing –Merchanting

Wish list (WPTGS 2008) short-term –Re-exports: more information from countries, particularly for key I-O years (1995, 2000, 2005). – Un-allocated (confidential) trade: more information longer-term –Systematic reporting of re-exports –New HS codes for scrap, waste, second-hand goods etc ? –Reporting of BOP trade in goods by product groups (cf. Australia’s BOP BEC) –More bilateral trade in services data + Trade statisticians work with National I-O compilers to estimate imported intermediates matrices

DSTI-EAS-IND-WPIA(2009)10