The statistical measurement of services recent international achievements

The statistical measurement of services: recent international achievements and what next? William Cave OECD Statistics Directorate ICES III Montreal 18 -21 June 2007 Session 4 1

The rise of services? n n n Ubiquity and diversity Break the problem down Expanding base of information Outsourcing raises the visibility of services Internationalisation aspects ICT progress enables: – – n n new forms of business organisation more remote delivery for certain services (offshoring) further internationalisation of production new kinds of services Co-location of customer and supplier remains important Importance of regulatory environment…. ICES III Montreal 18 -21 June 2007 Session 4 2

Services trade negotiations and agreements n n n GATS 1995 Regional trade agreements: EU, NAFTA, Andean Community … 4 modes of supply: – Cross-border; consumption abroad; commercial presence; presence of persons n n n Market access Regulatory barriers Doha round ICES III Montreal 18 -21 June 2007 Session 4 3

Other policy issues related to services n n n n n Competitiveness Sectoral regulation (e. g. health, legal, insurance, telecoms, gambling. . ) Need to measure growth/ comparable national accounts Productivity growth Offshoring concerns Services generate employment –which ones? Monetary policy needs short-term indicators How many work permits foreign service workers? Efficiency of infrastructure services ICES III Montreal 18 -21 June 2007 Session 4 4

Which services have expanded their contribution to national GVA? n Expansion of ICT, professional, scientific, business services, personal, cultural, and financial services in domestic economy ICES III Montreal 18 -21 June 2007 Session 4 5

Internationalisation of services FDI ICES III Montreal 18 -21 June 2007 Session 4 6

International Trade in Services: Growth by service? ICES III Montreal 18 -21 June 2007 Session 4 7

International Trade in Services: Growth v GDP? ICES III Montreal 18 -21 June 2007 Session 4 8

International trade in services v FATS ICES III Montreal 18 -21 June 2007 Session 4 9

Progress in international methodological work 1 n 1993 SNA Rev 1 (BPM 6 revisions) – – – – R&D * Originals and copies * Leases and licenses * Goods for processing and merchanting * Financial and insurance services * SNA/ISIC 4 high-level aggregations Guidelines for non-market output SPEs ICES III Montreal 18 -21 June 2007 Session 4 10

Progress in international methodological work 2 n n Classifications ISIC 4 , CPC 2 – Increased international comparability – Information sector – ICT friendly – More detail in services – CPC elaborates IP products International trade in services – BPM 6 – Manual on Statistics of International Trade in Services – Revise EBOPS – FATS + classification – More on modes of supply ICES III Montreal 18 -21 June 2007 Session 4 11

Progress in international methodological work 3 n Multinationals and FDI – HEGI 2005 – Eurostat FATS Recommendations Manual 2007 – Benchmark Definition 4 planned 2008 n Short-term indicators – ISP Compilation manual OECD 2007 n Service PPIs – Voorburg Group – SPPI Methodological guide OECD-Eurostat 2006 n New definitions of ICT ICES III Montreal 18 -21 June 2007 Session 4 12

What Next? n n n n Implementation of revised and new frameworks – SNA, ISIC, MSITS …. Research on intellectual property? Price and volume in services work remains a priority Services that are partly private and partly public sector e. g. Health, education, cultural services etc Internationalisation - trade in services – FATS - modes of delivery Improving product information Defining national priority areas by sector How to improve use of data sources – Registers, surveys, admin sources, private sector sources and data linking ICES III Montreal 18 -21 June 2007 Session 4 13

The End Thank you for your attention Contact hotline: STD. servstat@oecd. org ICES III Montreal 18 -21 June 2007 Session 4 14