1. 1 ICES III Montreal 18-21 June 2007 Session 4 The statistical measurement of services: recent international achievements and what next? William Cave OECD Statistics Directorate

2. 2 ICES III Montreal 18-21 June 2007 Session 4 The rise of services? Ubiquity and diversity Break the problem down Expanding base of information Outsourcing raises the visibility of services Internationalisation aspects ICT progress enables: –new forms of business organisation –more remote delivery for certain services (offshoring) –further internationalisation of production –new kinds of services Co-location of customer and supplier remains important Importance of regulatory environment….

3. 3 ICES III Montreal 18-21 June 2007 Session 4 Services trade negotiations and agreements GATS 1995 Regional trade agreements: EU, NAFTA, Andean Community … 4 modes of supply: –Cross-border; consumption abroad; commercial presence; presence of persons Market access Regulatory barriers Doha round

4. 4 ICES III Montreal 18-21 June 2007 Session 4 Other policy issues related to services Competitiveness Sectoral regulation (e.g. health, legal, insurance, telecoms, gambling..) Need to measure growth/ comparable national accounts Productivity growth Offshoring concerns Services generate employment –which ones? Monetary policy needs short-term indicators How many work permits for foreign service workers? Efficiency of infrastructure services

5. 5 ICES III Montreal 18-21 June 2007 Session 4 Which services have expanded their contribution to national GVA? Expansion of ICT, professional, scientific, business services, personal, cultural, and financial services in domestic economy

6. 6 ICES III Montreal 18-21 June 2007 Session 4 Internationalisation of services FDI

7. 7 ICES III Montreal 18-21 June 2007 Session 4 International Trade in Services: Growth by service?

8. 8 ICES III Montreal 18-21 June 2007 Session 4 International Trade in Services: Growth v GDP?

9. 9 ICES III Montreal 18-21 June 2007 Session 4 International trade in services v FATS

10. 10 ICES III Montreal 18-21 June 2007 Session 4 Progress in international methodological work 1 1993 SNA Rev 1 (BPM6 revisions) –R&D * –Originals and copies * –Leases and licenses * –Goods for processing and merchanting * –Financial and insurance services * –SNA/ISIC 4 high-level aggregations –Guidelines for non-market output –SPEs

11. 11 ICES III Montreal 18-21 June 2007 Session 4 Progress in international methodological work 2 Classifications ISIC 4, CPC 2 –Increased international comparability –Information sector –ICT friendly –More detail in services –CPC elaborates IP products International trade in services –BPM6 –Manual on Statistics of International Trade in Services – Revise EBOPS – FATS + classification – More on modes of supply

12. 12 ICES III Montreal 18-21 June 2007 Session 4 Progress in international methodological work 3 Multinationals and FDI –HEGI 2005 –Eurostat FATS Recommendations Manual 2007 –Benchmark Definition 4 planned 2008 Short-term indicators –ISP Compilation manual OECD 2007 Service PPIs –Voorburg Group –SPPI Methodological guide OECD-Eurostat 2006 New definitions of ICT

13. 13 ICES III Montreal 18-21 June 2007 Session 4 What Next? Implementation of revised and new frameworks –SNA,ISIC,MSITS …. Research on intellectual property? Price and volume in services work remains a priority Services that are partly private and partly public sector e.g. Health, education, cultural services etc Internationalisation - trade in services – FATS - modes of delivery Improving product information Defining national priority areas by sector How to improve use of data sources – Registers, surveys, admin sources, private sector sources and data linking

14. 14 ICES III Montreal 18-21 June 2007 Session 4 The End Thank you for your attention Contact hotline: STD.servstat@oecd.org