Implications of globalisation for economic statistics Trade measurement issues Art Ridgeway Balance...

Implications of globalisation for

economic statistics

Trade measurement issues

Art RidgewayBalance of Payments Division

July 2007

Balance of Payments DivisionStatistics Canada

2

Outline

• Trade – Ownership & Physical Flows

• Organization of Production

• Economic data for supply chains

Balance of Payments DivisionStatistics Canada

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Goods Trade – The New World

• Goods for Processing– Cross border flow ≠ Ownership change

• Goods vs. services• Valuation of flows• Consistency with banking

• Merchanting – Ownership change without cross border flow

• Inventories are outside country of owner• Banking flows with no imports or exports

Balance of Payments DivisionStatistics Canada

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Goods for Processing

Finished Goods

Cash = value of service

Service included in Finished Goods

Goods for processingCompany A Company B

Canada United States

Finished Goods

Cash = value of service

Processing Service

Goods for processingCompany A Company B

Canada United States

Current Treatment

Forthcoming Convention

Balance of Payments DivisionStatistics Canada

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Merchanting

Merchanting(International Wholesaler)

Inventories

CustomerSupplier

Country A

Country B Country C

Balance of Payments DivisionStatistics Canada

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Traditional View of Goods Production

Manufacturing establishment

InventoriesMaterials Finished Goods

Head Office(Finance, Development, Marketing)

(Ancillary)

Component Supplier

Final Market

Balance of Payments DivisionStatistics Canada

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Outsourcing Production for Export market – Economic Flows

Head Office(Finance, Development, Marketing)

InventoriesMaterials Finished Goods

ProcessorComponent Supplier

Final Market

Balance of Payments DivisionStatistics Canada

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Data Challenges

• Taking the four economies in turn look at data needs for each case– Customs data– Production surveys

• establishments - local units

– Financial surveys • enterprises

– Trade in services

Balance of Payments DivisionStatistics Canada

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Economy I

Econ III

Econ IV

Econ I Econ II

Head Office(Finance, Development, Marketing)

InventoriesMaterials Finished Goods

ProcessorComponent Supplier

Final Market

Balance of Payments DivisionStatistics Canada

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Economy III

Econ III

Econ IV

Econ I Econ II

Head Office(Finance, Development, Marketing)

InventoriesMaterials Finished Goods

ProcessorComponent Supplier

Final Market

Balance of Payments DivisionStatistics Canada

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Economy II

Econ III

Econ IV

Econ I Econ II

Head Office(Finance, Development, Marketing)

InventoriesMaterials Finished Goods

ProcessorComponent Supplier

Final Market

Balance of Payments DivisionStatistics Canada

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Economy IV

Econ III

Econ IV

Econ I Econ II

Head Office(Finance, Development, Marketing)

InventoriesMaterials Finished Goods

ProcessorComponent Supplier

Final Market

Balance of Payments DivisionStatistics Canada

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Data Source Research

• Customs data– Additional use of information on customs

forms

• Production surveys– Questions on outsourcing or off shoring– Inventories within and outside the country

• Trade in Services– Better data on processing and merchanting

Balance of Payments DivisionStatistics Canada

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Data Integration

• Improved coordination of estimates for– Goods trade– Services trade– Production

• Improved integration in building– National Accounts– Balance of Payments