UN Expert Group International Trade and Economic Globalisation Update

1. UN Expert Group International Trade and Economic Globalisation Update Presentation to Eurostat TF-IGA Luxembourg September 2016 www.cso.ie

2. WTO / Pascal Lamy Made in the World initiative Statistical Community Global Forum Goods for Processing Abroad FOC group 2008 SNA Impact on SNA Expert Group TiVA BPM6 FSB Data Gap 2000 2008 2011 2016 2013 WIOD Global Value Chain research Financial Crisis Making GVCs work for Development GVC in Post-crisis World World KLEMS G20 and GVCs GVCs: Aid for Trade Research Community

3. Progress TO dATE

4. Outcome of the First MeetingNew York, 26-28 Jan 2016 Handbook • The global value chain concept is central to the measurement of globalization • Statistical framework (national focus): • extended national supply and use tables and accounts, and • integrated business, trade and investment statistics • Satellite accounting approach taken for the measurement of extended national and multi-country GVC industry tables and accounts • Enterprise (group) perspective taken to move from bilateral to multilateral country perspective in production, investment and trade statistics

5. Concept of Global Value Chain The value chain describes: • full range of value adding activities, • business functions, • institutional environment and • governance required to bring a product or service from conception through the different phases of productionand delivery to final consumers, and the final disposal after use

6. Lead Firm Lead Firm Lead Firm Component and Material Suppliers Component and Material Suppliers Statistical units related to GVC Governance arrangements Market Relational Captive Hierarchy Modular End Use Customers Integrated Firm Value Chain Relational Supplier Full-package Supplier Turn-key Supplier Price Suppliers Captive Suppliers Materials Degree of Explicit Coordination Low High Degree of Power Asymmetry

7. Core versus extended – accounts and integrated business, trade and investment statistics Extendednational accounts, micro-data GVC analysis with firm heterogeneity; trade, investment, business and MNE statistics; business functions outsourcing Corenational accounts, micro-data linking: trade, investment, business statistics National versus Global Coreglobal SUTs WIOD, TiVA, FIGARO Globalization indicators, foreign content of exports Extendedglobal SUTs firm heterogeneity (foreign ownership, size and trade intensity)

8. Addressing Firm Heterogeneity in national extended GVC industry satellite SUTs

9. Integrated business and Trade statistics and registers

10. Elements of the Integrated Business, Investment and Trade Statistics Framework • Improve business registers with identification of multi-national enterprises, foreign affiliates and size class, and with links to trade and investment statistics • Establish a global enterprise group register, by further developing the approach employed by the euro-groups register • Balance bilateral trade and investment asymmetries in a consistent way • Standardize surveys on international sourcing of Business Functions • Address the concerns of confidentiality in the access to and use of micro-data • Recommend indirect measures where basic data are missing

11. Integrated Business, Investment and Trade Statistics Framework • The extended national and GVC satellite accounts proportionality assumptions and bilateral trade asymmetries • GVC satellite accounts can be formulated in terms of their goods and services producing activities, their supply and use of intermediate products, their final outputs in the end markets, and their heterogeneity of firms, in terms of ownership, size class and trade intensity • Various GVC industries are considered as examples for the Handbook, such as the agri-food, textile and apparel, automotive, energy, pharmaceutical and tourism industries

12. Current state of play

13. Outline of Handbook • Framework for Handbook • Outline - Contents • Lead Authors – coordinators • Contributors • Next Meeting – Workshop at IBM Learning Centre, Armonk - November 2016

14. Outline of Handbook 1. New Presentations of data • Extended SUT Tables • Extended Productivity Accounts • Extended Environmental Accounts • Extended Capital and Financial Accounts www.cso.ie

15. Outline of Handbook 2. Quality and Technical issues • Firm heterogeneity • Resolving bilateral asymmetries • Potential for extending data through data linking • Special accounting topics www.cso.ie

16. Outline of Handbook 3. Global Value Chains • Case study approach • Industry modules - regional and global accounts 4. Applications and Policy Uses of the Extended Accounts www.cso.ie

17. Progress by Year end 2016 • Annotated outlines and progress reports for each chapter completed • Clarity on academic and statistical contributions to Global Value Chain chapters • Roadmap for chapter completion and editorial review www.cso.ie

18. Are we missing issues? • Do we need extended data presentations in the short term – Quarterly Accounts ? • Is timeliness critical to inform policy makers ? • ……………………………. www.cso.ie