ESSNet on Measuring Global Value Chains - WP1 TF3

Draft set of supplemental and experimental indicators for the theme International Organisation (GVC)

7-9 November 2012, Lisbon

Introduction

This document provides a first draft set of supplemental and experimental indicators for the theme of International Organisation (GVC). In addition to within the ESS available economic globalisation indicators as proposed in the report on reference indicators we here provide a set of indicators available at individual NSI level, but not regulated by the ESS as such. The goal of this document is to provide input for a discussion about supplemental and experimental indicators during the third Task Force Meeting of Work Package 1 of the ESSNet on measuring GVC. This is the first step in drafting reports on supplemental and experimental indicators for all themes in the Economic Globalisation Indicators framework. In order to limit the scope and number of possible indicators in this theme we focus on the 2012 GVC&IS survey. Especially the number of experimental indicators is prone to increasing exponentially when taking into account breakdowns based on micro data linking with (in this case) international trade in goods and foreign affiliates statistics.

Supplemental indicators[1]

Supplemental 3.1 Share of enterprises sourcing activities internationally

Breakdowns:

  1. by business function (or core/support)
  2. to destination
  3. insourcing / outsourcing
  4. sector (nace)
  5. combinations of breakdowns 1-4

Population: Non-financial business economy, 100+ working persons

Supplemental 3.2 Share of enterprises with activities in foreign affiliates

Breakdowns:

  1. by business function (or core/support)
  2. in destination
  3. sector (nace)
  4. combinations of breakdowns 1-3

Population: Non-financial business economy, 100+ working persons

Supplemental 3.3 Share of enterprises with activities in external enterprises abroad

Breakdowns:

  1. by business function (or core/support)
  2. in destination
  3. sector (nace)
  4. combinations of breakdowns 1-3

Population: Non-financial business economy, 100+ working persons

Experimental indicators[2]

GVC&IS-variables as outcome variables

Experimental 3.1 Share of enterprises sourcing activities internationally

Breaking down by micro data linking with international trade in goods and foreign affiliates statistics:

  1. Non-trader
  2. Importer
  3. Exporter
  4. Two-way-trader
  5. Domestically-controlled
  6. With affiliates
  7. Without affiliates
  8. Foreign-controlled

Population: Non-financial business economy, 100+ working persons

Experimental 3.2Share of enterprises with activities in foreign affiliates

Breaking down by micro data linking with international trade in goods:

  1. Non-trader
  2. Importer
  3. Exporter
  4. Two-way-trader

Population: Non-financial business economy, 100+ working persons

Experimental 3.3Share of enterprises with activities in external enterprises abroad

Breaking down by micro data linking with international trade in goods and foreign affiliates statistics:

  1. Non-trader
  2. Importer
  3. Exporter
  4. Two-way-trader
  5. Domestically-controlled
  6. With affiliates
  7. Without affiliates
  8. Foreign-controlled

Population: Non-financial business economy, 100+ working persons

GVC&IS-variables as stratification variables[3]

Experimental 3.4 Share of enterprises having foreign affiliates

Micro data linking with GVC&IS and O-FATS[4]

  1. Enterprises notsourcing activities internationally
  2. Enterprises sourcing activities internationally

Experimental 3.5 Share of enterprises controlled by foreign enterprises

Micro data linking with GVC&IS and I-FATS

  1. Enterprises not sourcing activities internationally
  2. Enterprises sourcing activities internationally

(Supplemental indicator 3.1 on INTERNATIONAL ORGANISATION (GVC))
Share of enterprises sourcing activities internationally
Source /
  1. GVC&IS survey –MEETS Programme

Periodicity / Once (similar survey in 2007)
Reference period / 2009-2011
Definition / The number of enterprisessourcing activities internationallyin the compiling country as a share of the total number of enterprises in the compiling country (considering the target population). Activities are also referred to as business functions.
Calculation / The number of enterprisessourcing activities internationally of the GVC&IS survey divided by the total number of enterprises in the population of the GVC&IS survey.
Relevance / This indicator reflects the extent to which enterprises move activities abroad. The breakdowns give specific insight in international sourcing activities.
Formal characteristics /
  1. ratio (%)
  2. range 0% < IS-share< 100%
  3. unit of measurement nominator/denominator: enterprise
  4. coverage:SBS: NACE Rev.2 Sections B to N and P to S and having 100+ working persons

Breakdowns /
  1. business function (or core/support)
  2. destination
  3. insourcing / outsourcing
  4. sector (nace)
  5. compiling country and/or aggregated set of compiling countries(for example EU12, EU15, EU27, EFTA)
  6. combinations of breakdowns 1-5

(Supplemental indicator 3.2 on INTERNATIONAL ORGANISATION (GVC))
Share of enterprises with activities in foreign affiliates
Source /
  1. GVC&IS survey – MEETS Programme

Periodicity / Once (similar survey in 2007)
Reference period / 2011.
Definition / The number of enterprises in the compiling country having activities in foreign affiliates as a share of the total number of enterprises in the compiling country (considering the target population). Activities are also referred to as business functions.
Calculation / The number of enterpriseshaving activities in foreign affiliates of the GVC&IS survey divided by the total number of enterprises in the population of the GVC&IS survey.
Relevance / This indicator reflects the extent to which enterprises source activities to affiliates abroad.
Formal characteristics /
  1. ratio (%)
  2. range 0% < AIFA-share< 100%
  3. unit of measurement nominator/denominator: enterprise
  4. coverage: SBS: NACE Rev.2 Sections B to N and P to S and having 100+ working persons

Breakdowns /
  1. business function (or core/support)
  2. destination
  3. sector (nace)
  4. compiling country and/or aggregated set of compiling countries (for example EU12, EU15, EU27, EFTA)
  5. combinations of breakdowns 1-4

(Supplemental indicator 3.3 on INTERNATIONAL ORGANISATION (GVC))
Share of enterprises with activities in external enterprises abroad
Source /
  1. GVC&IS survey – MEETS Programme

Periodicity / Once (similar survey in 2007)
Reference period / 2011
Definition / The number of enterprises in the compiling country having activities in external suppliers as a share of the total number of enterprises in the compiling country (considering the target population). Activities are also referred to as business functions.
Calculation / The number of enterprises in the compiling country having activities in external suppliersdivided by thetotal number of enterprises in the compiling country.
Relevance / This indicator reflects the extent to which enterprises outsource activities to external suppliers abroad.
Formal characteristics /
  1. ratio (%)
  2. range 0% < AIEE-share< 100%
  3. unit of measurement nominator/denominator: enterprise
  4. coverage: SBS: NACE Rev.2 Sections B to N and P to S and having 100+ working persons

Breakdowns /
  1. business function (or core/support)
  2. destination
  3. sector (nace)
  4. compiling country and/or aggregated set of compiling countries (for example EU12, EU15, EU27, EFTA)
  5. combinations of breakdowns 1-4

(Experimental indicator 3.1 on INTERNATIONAL ORGANISATION (GVC))
Share of enterprises sourcing activities internationally
Source /
  1. GVC&IS survey – MEETS Programme
  2. International Trade in Goods
  3. FATS (Regulation (EC) No 716/2007 and Regulation (EC) 747/2008)

Periodicity / Once (similar survey in 2007)
Reference period / 2009-2011
Definition / The number of enterprisessourcing activities internationallyin the compiling country as a share of the total number of enterprises in the compiling country (considering the target population).
Calculation / The number of enterprisessourcing activities internationally of the GVC&IS survey divided by the total number of enterprises in the population of the GVC&IS survey, linked and distinguished on enterprise level by characteristics of international trade in goods and foreign affiliates statistics
Relevance / This indicator reflects the extent to which enterprises move activities abroad. The breakdowns give specific insights in international sourcing activities.
Formal characteristics /
  1. ratio (%)
  2. range 0% < IS-share< 100%
  3. unit of measurement nominator/denominator: enterprise
  4. coverage: SBS: NACE Rev.2 Sections B to N and P to S and having 100+ working persons

Breakdowns / Breaking down by micro data linking with international trade in goods and foreign affiliates statistics:
  1. Non-trader
  2. Importer
  3. Exporter
  4. Two-way-trader
  5. Domestically-controlled
  1. With affiliates
  2. Without affiliates
  1. Foreign-controlled

(Experimental indicator 3.2 on INTERNATIONAL ORGANISATION (GVC))
Share of enterprises with activities in foreign affiliates
Source /
  1. GVC&IS survey – MEETS Programme
  2. International Trade in Goods

Periodicity / Once (similar survey in 2007)
Reference period / end of 2011
Definition / The number of enterprises in the compiling country having activities in foreign affiliates as a share of the total number of enterprises in the compiling country (considering the target population). Activities are also referred to as business functions.
Calculation / The number of enterpriseshaving activities in foreign affiliates of the GVC&IS survey divided by the total number of enterprises in the population of the GVC&IS survey, linked and distinguished on enterprise level by characteristics of international trade in goods and foreign affiliates statistics
Relevance / This indicator reflects the extent to which enterprises source activities to affiliates abroad. The breakdowns give specific insights in international insourcing activities.
Formal characteristics /
  1. ratio (%)
  2. range 0% < AIFA-share< 100%
  3. unit of measurement nominator/denominator: enterprise
  4. coverage: SBS: NACE Rev.2 Sections B to N and P to S and having 100+ working persons

Breakdowns / Breaking down by micro data linking with international trade in goods:
  1. Non-trader
  2. Importer
  3. Exporter
  4. Two-way-trader

(Experimental indicator 3.3 on INTERNATIONAL ORGANISATION (GVC))
Share of enterprises with activities in external enterprises abroad
Source /
  1. GVC&IS survey – MEETS Programme
  2. International Trade in Goods
  3. FATS (Regulation (EC) No 716/2007 and Regulation (EC) 747/2008)

Periodicity / Once (similar survey in 2007)
Reference period / 2011
Definition / The number of enterprises in the compiling country having activities in external suppliers as a share of the total number of enterprises in the compiling country (considering the target population). Activities are also referred to as business functions.
Calculation / The number of enterprises in the compiling country having activities in external suppliersdivided by thetotal number of enterprises in the compiling country, linked and distinguished on enterprise level by characteristics of international trade in goods and foreign affiliates statistics
Relevance / This indicator reflects the extent to which enterprises outsource activities to external suppliers abroad. The breakdowns give specific insights in international outsourcing activities.
Formal characteristics /
  1. ratio (%)
  2. range 0% < AIEE-share< 100%
  3. unit of measurement nominator/denominator: enterprise
  4. coverage: SBS: NACE Rev.2 Sections B to N and P to S and having 100+ working persons

Breakdowns / Breaking down by micro data linking with international trade in goods and foreign affiliates statistics:
  1. Non-trader
  2. Importer
  3. Exporter
  4. Two-way-trader
  5. Domestically-controlled
  1. With affiliates
  2. Without affiliates
  1. Foreign-controlled

(Experimental indicator 3.4 on INTERNATIONAL ORGANISATION (GVC))
Share of enterprises having foreign affiliates
Source /
  1. GVC&IS survey – MEETS Programme
  2. FATS (Regulation (EC) No 716/2007 and Regulation (EC) 747/2008)

Periodicity / Once (similar survey in 2007)
Reference period / 2009-2011
Definition / The number of domestic enterprises in the compiling country controlling foreign affiliates (extra-EU) as a share of the total number of enterprises in the compiling country, broken down by International Sourcing characteristics.
Calculation / The number of domestic enterprises in the compiling country controlling foreign affiliates (extra-EU) divided by the total number of enterprises in the compiling country, linked and distinguished on enterprise level by international sourcing characteristics.
Relevance / This indicator reflects the extent to which enterprises in the compiling enterprise are active abroad through the control of affiliates.
Formal characteristics /
  1. ratio (%)
  2. range 0% < EFA-share< 100%
  3. unit of measurement nominator/denominator: enterprise
  4. coverage: SBS: NACE Rev.2 Sections B to N and P to S and having 100+ working persons

Breakdowns / Micro data linking with GVC&IS and O-FATS[5]
  1. Enterprises not sourcing activities internationally
  2. Enterprises sourcing activities internationally

(Experimental indicator 3.5 on INTERNATIONAL ORGANISATION (GVC))
Share of enterprises controlled by foreign enterprises
Source /
  1. GVC&IS survey – MEETS Programme
  2. FATS (Regulation (EC) No 716/2007 and Regulation (EC) 747/2008)

Periodicity / Once (similar survey in 2007)
Reference period / 2009-2011
Definition / The number of domestic enterprises in the compiling country controlled by foreign enterprises as a share of the total number of enterprises in the compiling country, broken down by International Sourcing characteristics.
Calculation / The number of domestic enterprises in the compiling country controlled by foreign enterprises divided by the total number of enterprises in the compiling country, linked and distinguished on enterprise level by international sourcing characteristics.
Relevance / This indicator reflects the importance of foreign-controlled enterprises in the compiling country. It is one of the characteristics of the attractiveness of EU countries for foreign enterprises or investors. The MDL breakdown distinguishes between enterprises sourcing activities internationally and enterprises which do not source activities internationally.
Formal characteristics /
  1. ratio (%)
  2. range 0% < ECFE-share< 100%
  3. unit of measurement nominator/denominator: enterprise
  4. coverage: SBS: NACE Rev.2 Sections B to N and P to S and having 100+ working persons

Breakdowns / Micro data linking with GVC&IS and I-FATS
  1. Enterprises not sourcing activities internationally
  2. Enterprises sourcing activities internationally

[1] Supplemental indicators are available at country / NSI level, and not as such regulated at ESS level. One or more countries / NSIs may be able to provide a specific supplemental indicator.

[2] Experimental indicators are – just as supplemental indicators – available at country / NSI level, and not as such regulated at ESS level. One or more countries / NSIs may be able to provide a specific supplemental indicator. This distinguishing difference with supplemental indicators is that experimental indicators are created by micro data linking

[3] In the 2012-2013 MDL project the GVC&IS variables will mainly be used as stratification variables, in order to – for example – monitor the effects of international sourcing on SBS, FATS and/or ITG variables.

[4]Similar stratifications with this GVC&IS variable can be applied to the other themes as well. In this report we limit the scope to International organisation (GVC) which contains inward and outward FATS variables with the enterprises as relevant unit.

[5]Similar stratifications with this GVC&IS variable can be applied to the other themes as well. In this report we limit the scope to International organisation (GVC) which contains inward and outward FATS variables with the enterprises as relevant unit.