1. STD/PASS/TAGS – Trade and Globalisation Statistics Linkages of trade and structural business statistics OECD progress report Agenda Item 8a Agenda

2. STD/PASS/TAGS – Trade and Globalisation Statistics 2 Background characteristics of trade operators In the context of a globalized world economy, the demand for detailed information about the characteristics of trade operators is gaining more and more importance. Trade data by size of enterprise, broken down by sector of activity, by export markets, and by location (e.g. region) would not only allow analyzing trade effects on employment and value added, but also identifying sectoral and/or regional performances. from two different statistical sources Such an analysis requires data from two different statistical sources: business/industrial statistics and foreign trade statistics.

3. STD/PASS/TAGS – Trade and Globalisation Statistics 3 common identifierThe usual key issue in this context is finding a common identifier between business and trade registers. While the EU Member States have shown a decent success in compiling sectoral trade statistics, the ability of Non-EU OECD member countries to perform a linkage exercise varies significantly between countries. However, the positive reactions to the OECD pilot questionnaire from April 2005 encouraged the secretariat to head for a similar data collection approach as Eurostat, to avoid any duplicate work and to ensure consistency across OECD countries. Background

4. STD/PASS/TAGS – Trade and Globalisation Statistics 4 Introduction Business Economic Statistics and Trade (BEST) Steering Group Upon invitation from Statistics Canada, the 1st Meeting of the Business Economic Statistics and Trade (BEST) Steering Group took place 19-21 June 2006 at Statistics Canada, Ottawa. The 1st Steering Group meeting had very fruitful discussions and decided on the terms of reference, the name of the group, the general approach in terms of methodology and the installation of an electronic discussion group. The next meeting of the Steering Group is scheduled to take place end 2007.

5. STD/PASS/TAGS – Trade and Globalisation Statistics 5 2ndOECD Structural Business Statistics Expert Meeting (10-11 May 2007)The project has been presented at the 2nd OECD Structural Business Statistics Expert Meeting (10-11 May 2007) and was supported by delegates. Also representatives from some Non-OECD countries showed interest in the project. Norway has already delivered results for 2003, according to OECD nomenclature. OECD would especially appreciate the participation from Non-EU OECD candidate countries in this exercise, but also other non- OECD countries are invited to join the project they wish so... Introduction

6. STD/PASS/TAGS – Trade and Globalisation Statistics 6 EDG B.E.S.TA considerable number of methodological considerations and drawbacks have to be taken into account given the very different statistical systems in place in these countries. Therefore, the EDG B.E.S.T. will play a key role in enabling OECD and member countries to compile methodological recommendations. EDGThe EDG has the following categories for input: –Methodologies –Methodologies (this category is pre-condition for the category ‘guidelines’), –Meetings –Meetings (meeting documents and reports of meetings), –Guidelines –Guidelines (the development of a manual, suitable for Non-EU countries of the OECD, would be the optimum), –Globalisation –Globalisation (this category re-groups issues from the globalisation context which impact on the work of this group. For instance, intra-firm trade and multinationals), –Data and Indicators –Data and Indicators (this category is intended to assemble the basic data and indicators which have been compiled through this work). Electronic Discussion Group “B. E. S. T.”

7. STD/PASS/TAGS – Trade and Globalisation Statistics 7 Electronic Discussion Group “B. E. S. T.”

8. STD/PASS/TAGS – Trade and Globalisation Statistics 8 Electronic Discussion Group “B. E. S. T.”

9. STD/PASS/TAGS – Trade and Globalisation Statistics 9 The first OECD Linkage Table (2007) This table gives an indication about the statistical relevance / significance of the results. The objective is, of course, to include a maximum of trade operators.

10. STD/PASS/TAGS – Trade and Globalisation Statistics 10 For a better interpretation of the resulting sectoral trade-by-enterprise-size class tables, background information about the general structure of the enterprises in the respective country is necessary (allocation of enterprises by number of employees and sector). The figures of these tables indicate the trade values produced by enterprise size (in terms of number of employees). The cross-tabulation by ISIC classification allows distinguishing the influence on external trade of the big / medium / small enterprises by sectors.

11. STD/PASS/TAGS – Trade and Globalisation Statistics 11 These tables help to identify the degree in which the top enterprises (in terms of trade value) determine the total trade / trade by sectors of the respective country.

12. STD/PASS/TAGS – Trade and Globalisation Statistics 12 In contrary to the ‘classic view’ of foreign trade statistics (trade value by partner country) these tables concentrate on the question of how many enterprises (in which sectors) trade with which countries. In other words, it’s a look at the number of trade relations (by sectors) instead of a look at the value of trade relations.

13. STD/PASS/TAGS – Trade and Globalisation Statistics 13 The ‘classic’ view towards trade values by partner countries, but broken-down by ISIC sections of the traders. STD/PASS/TAGS – Trade and Globalisation Statistics

14. 14 These tables show the degrees of (geographic) diversification by sectors in terms of number of partner countries and number of enterprises. STD/PASS/TAGS – Trade and Globalisation Statistics These tables show the degrees of (geographic) diversification by sectors in terms of number of partner countries and value of trade.

15. STD/PASS/TAGS – Trade and Globalisation Statistics 15 STD/PASS/TAGS – Trade and Globalisation Statistics Detailed cross-tabulation tables by CPC 1.0 (2-digit-level) and ISIC 3.1 (2-digit- level).

16. STD/PASS/TAGS – Trade and Globalisation Statistics 16 Some results: Norway

17. STD/PASS/TAGS – Trade and Globalisation Statistics 17 Some results: Norway

18. STD/PASS/TAGS – Trade and Globalisation Statistics 18 Some results: Norway

19. STD/PASS/TAGS – Trade and Globalisation Statistics 19 The process of building up a new database on trade by enterprise characteristics has been put into motion now with the sending out of the first version of the OECD Linkage Table. The next step consists in filling these out as much as possible by countries, identifying barriers to do so and clarifying concepts and definitions. This first stocktaking and initial combining of data is the obligatory first step before proceeding further. There is nothing OECD can do in this respect without the active participation of countries. OECD has created the Electronic Discussion Group “B.E.S.T.” to provide a one- stop-address for this work for collaborating countries. Both countries and OECD can now provide inputs; this is the immediate task for preparing the next meeting. The first inputs (methodology, data collection tables) have been provided, and the EDG is in the process of being populated. The road ahead

20. STD/PASS/TAGS – Trade and Globalisation Statistics 20 The road ahead [ctd] Step-by-step, cleared concepts and definitions should be compiled in a pilot recommendations manual for adoption by countries. It seems advisable to make the recommendations sufficiently broad so that they can be also applied by other countries, for instance the Big 5 Non-Member countries of OECD. After results from the first data collection will be available, OECD will set up (in close cooperation with Eurostat) a first set of OECD tables from the linkage exercise. A 2nd B.E.S.T. meeting is scheduled to take place towards end 2007 to allow the United States to sufficiently advance in their work. It will be important to assess best practice and core requirements to proceed further. A periodic review is planned to ensure that the project remains on track and is providing pertinent results.

21. STD/PASS/TAGS – Trade and Globalisation Statistics 21 Delegates are invited to: Comment on the project and -eventually- voice interest in active participation. Non-EU countries are invited to comment on their possibility to compile data according to the standard table framework provided and flag scope for co-operation with OECD. Comment on the project and -eventually- voice interest in active participation. Non-EU countries are invited to comment on their possibility to compile data according to the standard table framework provided and flag scope for co-operation with OECD.