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AGNA Meeting 20-22 April 2016, Addis Ababa

Expanding the coverage of the T rade i n V alue A dded database for Africa Oscar.lemmers@oecd.org. AGNA Meeting 20-22 April 2016, Addis Ababa. Overview. Challenges of global production What is TiVA? What does TiVA tell us? How is TiVA created? Formal OECD/ECA cooperation.

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AGNA Meeting 20-22 April 2016, Addis Ababa

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  1. Expanding the coverage of the Trade in Value Added database for Africa Oscar.lemmers@oecd.org AGNA Meeting 20-22 April 2016, Addis Ababa

  2. Overview • Challenges of global production • What is TiVA? • What does TiVA tell us? • How is TiVA created? • Formal OECD/ECA cooperation

  3. Statistical Challenges of global production The Apple iPod = 299$ of Chinese ‘exports’ to US What does this mean? • Gross exports ≠ value-added • Bilateral trade balances can differ significantly – who really trades with who? • Imports for exports • Of which • 75$ profit to US (Apple) • 73$ whls/retail US (Apple) • 75$ to Japan (Toshiba) • 60$ 400 parts from Asia • 15$ 16 parts from the US • 2$ assembly by China 3 http://blogs.computerworld.com/node/5724

  4. What is TiVA? TiVA: Trade in Value Added An approach to measuring the value that is added by each country in the value-chain

  5. What does TiVA tell us?

  6. What does TiVA tell us?

  7. Who trades with who? Japan’s trade balances Remember the iPod?

  8. The current TiVA database 61 economies + RoW, 1995-2011, 34 industries, http://oe.cd/icio-fr or http://oe.cd/tiva But expansion is needed particularly for Africa

  9. TiVA industries

  10. How is TiVA created? Connecting national SUTs into national Input Output tables into an Inter Country Input Output (ICIO) table

  11. National building blocks for TiVA National Supply Use Tables

  12. International cooperation • OECD working with global partners to expand TiVA coverage and provide permanent public-good for policy makers and statisticians • Proposal for formal OECD/ECA cooperation: • Phase I – countries are asked to send all current SUTs or IOTs (and structural business statistics) to ECA for onward transmission to OECD • Phase II -OECD to harmonise national data and provide feedback/guidance to countries • Phase III - National Action plans (and leveraging on OECD partnerships, submitted to donors for funding) to develop capacity • Phase IV – integration of national tables into OECD TiVA, and on-going permanent cooperation

  13. Creating spill-overs and synergies • OECD already engaging with countries to create SUTs best adapted to national (data) circumstances, with a view to delivering best quality estimates of coherent GDP. • Capitalising on all available data sources, including in particular micro-data linking. • One important dimension of this strategy for Africa is likely to be on the ‘informal’ economy, where the OECD has long-standing expertise.

  14. Thank you for your attention, merci!

  15. Pourqoiest-ce important pour l’Afrique Pays à faible revenu exports et imports, Mld USD Peu d'intégration via les importations intermédiaires et des exportations relativement bas de gamme, 2000-2013

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