How to go beyond BPM in SITS

1. How to go beyond BPM in SITS Shin-Tsyr Jing Associate Research Fellow Chung-Hwa Institution for Economic Research October 1-3, 2008

2. Purposes • Service industry plays important roles in economic development and employment in Chinese Taipei • We do not have sufficient statistics for the needs of trade negotiators and policy markers • In order to break through this predicament, we did some experiments in past three years • That is what I want to talk about today

3. Background Information 1 • In 2007, service industry output reached NT$8.9 trillion (roughly US$ 272.3 billions), accounting for 71.1% of GDP • Service industry job-creation level is 5.96 millions jobs, accounting for 57.9% of total employment • Production in the services industry grew 4.3 percent in 2007 • Service internationalreceipts increased to US$30,642 million, and service internationalpayments rose to US$36,068 million • However, we do not have separate transaction data with other countries in details

4. Background Information 2 • Central Bank－ collects 11 service sectors and some sub-sectors statistics, but insufficient for the needs of trade negotiations & policy markers • The Investment Commission of the Ministry of Economic Affairs－collects FDI statistics, not collect the domestic sales by foreign affiliates • The Bureau of Employment and Vocational Training, Council of Labor Affairs－ collects short-term employment of foreign staff statistics

5. Experiments on Compiling Statistics for the GATS Modes of Supply • Pick up the target sectors • Find the population • Collect the current available information of statistics • Clarification of service industry classification • Survey Questionnaire Content • Sample Selection • Trade in Services Statistics Instruction Manual

6. Pick up the target sectorsFind the population • Pick up the target sectors • Telecommunications, insurance and maritime service sectors • Licenses and highly regulation • It is relatively easy to survey them with the help from the government authorities • Find the population • The DGBAS in Chinese Taipei－update the population of all industries once for 5 years • Each government authority－collects specific service-sector’s population

7. Collect available statisticsClarification of service industry classification • Collect the current available information of statistics • Capital, foreign capital share, revenues, expenses, sale, etc from all possible sources • Import/export data not available • Clarification of service industry classification • Build a correspondence table－GNS/W/120 components and our standard service industry components

8. Survey Questionnaire Content • Survey Questionnaire Content • Basic information • Business, investment, and employment statistics • sales/purchases in total and countries, FDI, gross operating revenues/expenses in subsidiaries and branches abroad, total number of employees/total employee compensation • Opening questions • work content and title of foreign employees, investment barriers, needs of the government assistance

9. Sample Selection • Sample Selection • Special permission service sectors－the method of complete survey • Others－the method of sampling survey • Current available data • Program of the Chi-sqare Automatic Interaction Detection, CHAID, to divide the population into a set of target groups • Proportionate quota sampling • Field workers interview

10. Instruction Manual • Trade in Services Statistics Instruction Manual • Trade in services statistics instruction manual • Manual content • Introduction • Clarification of service industry classification • Inspection of the existing official business statistical data • Investigation action program • Analyses of survey results

11. Thank you