1. Globalisation Statistics: General Introduction Michael E. Nielsen & Jon Mortensen EU Twinning Project: Globalisation Statistics State Statistics Service of Ukraine, 28 April 2015

2.  Drivers of globalisation – measurement challenges  Globalisation statistics  FATS – IFATS, OFATS  Outsourcing  MDL  TEC  Globalisation indicators  Future/FRIBS Today’s presentation 2

3.  Increased liberalisation of international trade and movement of capital (and individuals)  Technological development lowering costs of transportation, travel and communication  Increased modularisation of the production process – both for manufacturing and services, as market transactions substitute for hierarchical organisation – enabled by technology and regulatory reform  New ways of organising the production processes  Importance of emerging new markets Drivers of globalisation 3

4. Lowering of tariffs 4 OECD, Economic Outlook, 2007/1, No. 81

5. Drop in real transport, communication costs 5 OECD, Economic Outlook, 2007/1, No. 81

6. Growth in world trade and FDI 6 WTO International Trade Statistics 2014 and UNCTAD World Investment Report 2014

7.  Official statistical production systems mainly designed to measure domestic activities  The dynamics of globalisation requires introduction of new concepts, e.g.  Business functions  Enterprise groups  Changed environment with focus on diminishing respondent burden on enterprises Challenges in measuring globalisation 7

8. Why different statistical domains and stakeholders need to co-operate 8 What is globalisation?

9.  FATS  IFATS  OFATS  Outsourcing  MDL  TEC  Globalisation indicators Globalisation statistics 9

10.  Foreign controlled enterprises resident in the country that compiles the statistics  Residency of the ultimate controlling institutional unit (UCI) defines the nationality of an enterprise  Variables  Country of UCI  Turn-over (of affiliate)  Number of employees  Number of affiliates  Activity (NACE)  Thus, inward FATS describe how many jobs, how much turnover, etc. are generated by foreign investors in the host economy http://ec.europa.eu/eurostat/statistics-explained/index.php/Foreign_affiliates_statistics_-_FATS Inward FATS (IFATS) 10

11. 11 IFATS: Enterprises by ownership in EU-28, 2011 376 enterprises

12.  Enterprises controlled from the compiling country, but resident abroad  Examples of variables  Number of affiliates  Country of affiliates  Number of employees (of affiliates)  Activity (NACE)  Thus, OFATS describe the number of employees, the activity and geography of foreign affiliates Outward FATS (OFAT) 12

13. Number of foreign affiliates, 2012 OFATS: Results 13

14. Policy issues addressed How many jobs are moved across borders? Which type of jobs and in which sectors? Who are the receiving countries? Is there a risk of “hollowing out“ skill based activities? What is the impact of international sourcing on the value creation of European firms? What are the employment impacts – in terms of job losses or gains? Survey on International organisation and sourcing of business functions 14

15. Mainly manufacturing enterprises sourcing internationally 15 Enterprises sourcing internationally 2009-2011 broken down by main sector. Share of total number of enterprises in non-financial market economy with 100 or more employees. Survey results published by Eurostat, International sourcing of business functions, 2013

16. Business Register Interna- tional Sourcing Inward FATS Accounts statistics Foreign trade (goods) Micro data linking

17. Employment and international sourcing 17 Results from micro data linking. Denmark, 2001-2007.

18.  Datasets are compiled by linking micro data from trade registers with business registers  Aims at describing trade flows from the view point of enterprises:  Characteristics of importing/exporting enterprises  Involvement of different industries in international trade  Involvement of small and medium enterprises (SMEs) in international trade  Impact of international trade on employment, growth and income  Effectiveness of export-promotion policies http://ec.europa.eu/eurostat/statistics-explained/index.php/International_trade_by_enterprise_characteristics Trade by Enterprise Characteristics (TEC): New statistical domain 18

19.  Mandatory (from reference year 2009)  Trade by activity (NACE) and enterprise size class  Concentration of trade by activity  Trade by partner country and activity  Trade by number of partner countries and activity  Trade by commodity (CPA) and activity  Voluntary  Trade by type of trader (one-way, two way)  Trade by ownership  Trade by export intensity  Trade by activity sectors  Trade by partner countries and size-class TEC: indicators 19

20. TEC: General findings 20

21. International trade International investments International sourcing and organisation R&D and technology Globalisation indicator themes 21 Employment Business dynamics Economic growth http://ec.europa.eu/eurostat/web/economic-globalisation-indicators/indicators

22. Globalisation indicator: Share of exports of goods in GDP - change 2000 - 2012 22

23. IFATS/Globalisation indicator: Employment in foreign controlled enterprises as share of total employment 23

24.  Framework regulation integrating business statistics (FRIBS)  International sourcing survey as multi-yearly survey  IFATS  Covering more activities (NACE Rev.2 sections O-S)  A*38 alignment: we expect more detail in IFATS data, confidentiality spill-over to SBS, spill-back to IFATS confidentiality  OFATS  New variables: Personnel costs, investments  Intra-EU affiliates included Future/FRIBS 24

25. Thank you! 25