Enhancing U.S. Statistics on Trade in Services

Maria BorgaU.S. Bureau of Economic Analysis

September 14, 2010

bea.gov

Collection Issues for Trade in Services

Developing data on trade in services can be challenging due to the lack of the kind of central collection point that exists for trade in goods

It is usually necessary to employ multiple methods of collection / estimation

bea.gov

United States System

Largely survey-based Mandatory surveys authorized by International

Investment and Trade in Services Survey Act Governed by Paperwork Reduction Act Several surveys or survey groups

Financial services Transportation (several surveys) Insurance Miscellaneous services and intangible assets

bea.gov

United States System (continued)

Some use of outside sources Travel

Education

Transportation (certain components)

Mirror (partner-country) data

A data source Travel with Mexico and Canada

Imports of computer services from Canada

A cross-check on our own survey results

bea.gov

Recent Improvements

Realignment of classifications Manual on Statistics of International Trade in Services Revised edition will be available at

http://unstats.un.org/unsd/tradeserv/TFSITS/default.htm Improved measurement methodologies Integration of affiliated and unaffiliated transactions

Miscellaneous services and intangible assets in 2006

Financial services in 2007 Statistics on total trade available for more types of services

Improved reporting

bea.gov

Recent Improvements (continued)

Sample frame improvements Added a screening question to identify importers to the Census

Bureau’s Company Organization Survey in 2006

Funded a significant expansion of the sample

458 firms were added to BEA’s mailing list for the quarterly survey of selected services for the third quarter of 2008

These new respondents reported $173 million in exports and $123 million in imports, or about 0.5 percent of the total exports and imports reported in that quarter

bea.gov

Planned Improvements

Data sources for travel In first quarter of 2009, instituted a survey that collects data on

travel expenditures made using credit, debit, and charge cards

In addition, BEA conducted a survey of travelers that collected information on the proportion of their expenditures abroad made using various means

BEA is analyzing the initial results will use the data from these surveys to improve the statistics on travel

Improved measures of services trade in industry accounts The 2010 comprehensive revision of the Industry Accounts will

incorporate the new type-of-service detail available as of 2006

bea.gov

Potential Improvements

Sample frame improvements Link between trade in services surveys and 2002 Economic

Census indicates that further data sharing could improve BEA’s statistics by identifying firms that export services but do not currently report on BEA’s surveys

Requires passage of the administration’s proposal on data sharing and synchronization

bea.gov

Potential Improvements (continued)

New international standards Balance of Payments Manual 6th edition and revised

Manual on Statistics of International Trade in Services Improved measures of insurance, computer software, and

financial services

Expands coverage of trade in services to include manufacturing services provided by an entity, the processor, that does not take ownership of the physical inputs and that receives a fee from the owner of the inputs Considerable challenge for international data collection

bea.gov

Potential Improvements (continued)

Changes to the surveys Coverage of additional types of services

Hampered by limited detail in company record-keeping systems Maybe possible to collect more detail for exports of services But more detail on imports would require a concerted effort to expand

detail collected from U.S. businesses on all purchases of services

Lower reporting thresholds Operating data

Collecting items such as employment Could yield important information on the characteristics of firms that

export services

bea.gov

Conclusions

U.S. system to compile statistics on trade in services largely a survey-based system Mandatory and confidential surveys

Paperwork Reduction Act Recent improvements

Additional detail on affiliated trade in services

Sample frame improvements

bea.gov

Conclusions

Planned improvements New data sources for travel

Incorporation of new detail in BEA’s Industry Accounts Potential improvements

Additional sample frame improvements focused on exporters

Meeting new international standards

Changes to the surveys Improvements could help support the President’s National

Export Initiative