1 / 11

Data Collection on Factoryless Goods Producers and Global Production

This research project explores the impact of globalization on national accounts and provides explicit guidance on classifying factoryless goods producers (FGPs) in the manufacturing sector. It analyzes data from BEA and Census surveys to assess the prevalence of domestic purchases of contract manufacturing services (CMS) and identifies firms that purchased CMS from foreign firms.

dasilva
Download Presentation

Data Collection on Factoryless Goods Producers and Global Production

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Data Collection on Factoryless Goods Producers and Global Production Brent Moulton (with Maria Borga) Group of Experts on National Accounts – UNECE Geneva May 9, 2014

  2. Globalization • Globalization has affected global manufacturing arrangements: • Traditional, integrated manufacturer • Manufacturing service provider • Factoryless goods producer • International guidelines and manuals: • System of National Accounts 2008 • Balance of Payments and International Investment Position Manual, 6th edition • The Impact of Globalization on National Accounts

  3. International Standards: BPM6 and SNA 2008 • New treatment of “goods-for-processing” • When ownership does not change and goods are returned after processing • Gross merchandise trade flows are excluded • Value of the processing service included as services trade measured by the processing fee • No impact on overall trade balance but it shifts the balance between goods and services • Impacts input-output accounts

  4. U.S. Classification Guidance on Factoryless Goods Producers • Explicit guidance to classify factoryless goods producers (FGP) in the manufacturing sector • Report the value of final product produced • Report purchases of contract manufacturing services (CMS) • Manufacturing service providers are also classified in manufacturing sector • Report receipts from CMS

  5. Contract Manufacturing Services • CMS is a key element in identifying the relationship between firms that outsource the fabrication of products—while still controlling the production process— and firms that do the processing • May help classify units to appropriate industry • May help identify the “goods-for-processing” international trade flows

  6. Surveys with CMS Questions • BEA Surveys • 2009 Benchmark Survey of U.S. Direct Investment Abroad (BE-10) • 2011 Benchmark Survey of Transactions in Selected Services and Intellectual Property Products with Foreign Persons (BE-120) • Census Bureau Surveys • 2007 Economic Census • 2011 Report of Organization Survey (COS) • 2012 Economic Census

  7. Responses on CMS from BE-10 Survey • 23% of US parents reported purchasing CMS

  8. Responses on CMS from BE-10 Survey • Within manufacturing, 24% of parents that purchased CMS were in computers and electronic products manufacturing • Other prominent industries included machinery, chemicals, medical equipment, transportation • US manufacturing parents that purchased CMS accounted for • 39% of value added for all manufacturing parents • 36% of value added for all wholesale parents

  9. Conclusions • Responses from BEA and Census surveys indicate: • Domestic purchases of CMS more prevalent • Firms that purchased CMS from their affiliates are larger than other firms purchasing CMS outside the U.S. • For U.S. parents who purchased CMS outside the U.S., they were just as likely to own as to not own the material inputs

  10. Next steps • Analyze adequacy of data from Census, BEA, and other sources • Special inquiry questions were added to 2012 Economic Census. These questions should help identify FGP activity

  11. Next steps • Research project will combine BEA data on multinational enterprises and trade in services with Census Bureau foreign trade data • Product detail and special inquiries to identify firms that purchased CMS from foreign firms • Also identify US firms that provided manufacturing services to foreign firms • Output of research will be a report that • Assesses the state of current data collections for FGP • Recommends any additional data collection that may be needed

More Related