1. Global Value Chains and International sourcing status quo
Pekka Alajääskö

2. International sourcing - micro data linking
Global Value Chains and International Sourcing
Methodological development project
International organisation and souring of business functions –survey
A framework for measurement and narrative of global value chains and economic globalization
Future projects on micro data linking
Workshop

3. International sourcing micro data linking
In 2009 Eurostat launched a project on linking data at enterprise level from IS survey, SBS and ITGS
Organisational set-up for the micro data linking worked well
High matching rates between IS and SBS and between IS and ITGS

4. International sourcing micro data linking
Joint questionnaire design and synchronised micro data linking facilitated the data comparability across the participating countries
Micro data linking took place in participating countries:
enterprise level data stayed in the participating countries
aggregated data sets were provided to Eurostat

5. International sourcing micro data linking
There are some problematic issues to be tackled in future projects; e.g. how to deal with demographic events like mergers and acquisitions vs. organic growth
The size of populations can furthermore hamper micro data-linking, so there is a need to better co-ordinate samples across different business surveys

6. Global Value Chains and International Sourcing
Methodological development:
New questionnaire covering international sourcing and global value chains was developed
Project generated new and useful experiences in questionnaire development and testing simultaneously in several Member States
Project laid the ground for the ESSnet and International organisation and souring of business functions –survey
Furthermore it is significantly supported Eurostat's and participating countries' focus and work on global value chains

7. International organisation and souring of business functions –survey
Questionnaire is a result of a long development process by a group of countries and Eurostat
During this process the questionnaire was tested in more than 100 enterprises
The questionnaire includes 5 modules:
General information
Activities the surveyed enterprise
International sourcing and relocation of business functions of the surveyed enterprise
International organisation of activities in the foreign affiliates of the surveyed enterprise
Contracted activities of the surveyed enterprise

8. International organisation and souring of business functions –survey
Two additional modules were designed in the process:
Future plans of the surveyed enterprise
Activities in the domestic affiliates of the surveyed enterprise
Because of the length of the questionnaire and the nature of the modules it was decided that the additional modules would be optional

9. International organisation and souring of business functions –survey
Launch/
End
No. enterprises
Cut-off
Mandatory
Web
Response
rate
France
June/Oct
8000 50
Yes 72
Portugal
May/Sept
1000
100 92
Netherlands
May/Oct
2200 No 63
Romania
April/Sept
3000 97
Slovakia
Sept/Oct.
1500 95
Sweden
August/Oct 42
Lithuania
July/Oct 89
Latvia
May/July
700
Estonia
April/June
500 83
Ireland
1300 41
Belgium
June 37
Norway
1400 96
Denmark
5000 98
Finland
April/Oct
1200 85

10. International organisation and souring of business functions –survey
Common methodology and definitions used in the survey contribute significantly to the harmonisation of output
Very important feature of the survey is the use of business functions and the distinction between core and support business functions
Question about the enterprise conception of their core business function has now been included in the questionnaire

11. ESSnet on measuring global value chains
ESSnet is a network of European countries created and entrusted by Eurostat for a precise purpose
ESSnet on measuring global started its work on September 1, 2011 and the work will last 28 months until the end of 2013.
ESSnet is co-ordinated by Statistics Denmark
Statistics Finland, INSEE France, CBS the Netherlands, SSB Norway, INE Portugal and INS Romania are the partners of the ESSnet

12. ESSnet on measuring global value chains
There are 6 work packages in the ESSnet:
globalisation indicators, with CBS NL as the lead NSI;
GVC/IS survey support and methodological fine tuning, with Statistics Denmark and Finland as lead NSIs;
further development of the micro data linking methodology and support of the implementation and production of linking data sets, lead by Statistics Denmark and CBS NL,
"mirror statistics" analysis of Inward and Outward FATS, with SSB NO in the lead of the work package,
analysis and dissemination of the survey and micro data linking results
co-ordination, administration and organisation of meetings, and workshops. Denmark leads work packages 5 and 6

13. Framework for measurement and narrative of global value chains and economic globalization
The objective of this work is to create a harmonized framework to measure economic globalisation
The intention is to build upon the prior work by Eurostat on global value chains, international sourcing, and especially micro-data linking

14. Framework for measurement and narrative of global value chains and economic globalization
The on-going work by Eurostat on ITS, FDI, BoP and FATS form important building blocks towards a harmonised framework
The measurement framework will, among many things, identify existing data gaps and make proposals how to fill these data gaps

15. Future projects on micro data linking
International organisation and sourcing of business activities -survey (GVC/IS) includes questions only on issues, on which information could not be provided by micro data linking
Survey results will be linked with existing statistics such as SBS, FATS and ITGS.

16. Future projects on micro data linking
Purpose of this project is to produce linked micro-datasets for impact analysis of international sourcing or internationally fragmented production chains on, for example, economic performance, employment and international trade in goods patterns of enterprises
Project will be carried out in 2013

17. Future projects on micro data linking
Eurostat has reserved financing in Eurostat's 2014 budget for a project linking micro data from business and trade statistics
The purpose of the 2014 project is to extend the linking of ITGS (perhaps ITS), FATS, IS/GVC and Science Technology Innovation (STI) statistics with the whole business statistics population of SBS
Project will start in 2014

18. Workshop on global value chains and economic globalisation
A workshop on Global Value Chains including related issues from national accounts, business and trade statistics took place on October 9-10, 2012 in Luxembourg
First draft of the above mentioned measurement framework was presented and discussed extensively
Additionally, work packages and achievements of the ESSnet on measuring global value chains and also projects and policy initiatives of DG ENTR and DG TRADE were presented in the workshop

19. Workshop on global value chains and economic globalisation
Eurostat's work on input-output tables and Commission funded research project WIOD were presented
OECD presented the work done in co-operation with WTO on Trade in Value Added

20. Further developments (i)
Academic paper on Global Value Chains commissioned by Eurostat and written by MIT professor Tim Sturgeon
Proposed a framework for GVC and related data
Identified the gaps in current statistics
Starting from this Eurostat wants to fill the data gaps and proposes to develop integrated international data platform (IIDP)

21. Further developments (ii)
The report describes the IIDP as a platform that “would include, among other things, full datasets on trade and FDI, including related party flags on all international transactions; full, accurate, and up-to-date enterprise ownership information, internationally linked enterprise IDs; administrative data sets adapted for statistical use, and new survey information on international sourcing and other critical topics, such as the internationalization of R&D and innovation.”

22. Thank you for your attention