UNECE

1
Introduction of four papers

• US, Mexico Hong Kong and a contributed paper
  from Czech Republic

• UNECE Group of Experts on National Accounts, 9
  May 2014, Item 7 Global Production
• Mark de Haan

2
Three papers on global production

• Data collection on factoryless goods producers
  and global productionUnited States Bureau of
  Economic Analysis
• 2008 Global manufacturing production main
  results for MexicoNational Institute of
  Statistics, Geography and Informatics of Mexico
• Compiling trade in goods and services statistics
  of Hong Kong using the change of ownership
  principleCensus and Statistics Department of
  Hong Kong

3
Contributed paper from Czech Republic

• Quantification of property income of
  non-residents
• Focus on 2008 SNA and BPM6 harmonization
• Recording of dividends arising from the hidden
  economy obtained by residents and non-residents
• Reinvested earnings on direct foreign investment.
• Paper addresses challenges in ensuring conceptual
  compliance between national accounts and balance
  of payments exhaustiveness versus targeting.

4
1. US BEA paper

• Main features
• Key focus on feasibility of data collection of
  factoryless goods producers (FGPs)
• Two surveys are extended with FGP related
  questions
• 2009 Benchmark Survey of U.S. Direct Investment
  Abroad (BE-10)
• 2011 Benchmark Survey of Transactions in Selected
  Services and Intellectual Property Products with
  Foreign Persons (BE-120)
• Added questions concentrate on measuring Contract
  Manufacturing Services (CMS)

5
1. US BEA paper

• (preliminary) Findings/conclusions
• Number of CMS purchasing enterprises is
  significant (23), particularly in Manufacturing
  (39) and Wholesale trade (30).
• State of data collection with respect to FGP
  activities will be further assessed
  (implementation foreseen in 2017)
• Questions
• Does the supplier under a FGP arrangement produce
  a CMS (relevance of ownership of inputs
  criterion)?
• Will the CMS purchasing wholesalers be
  reclassified as manufacturers?

6
2. Mexico INEGI paper

• Main features
• Starting point 2008 revision of Mexican national
  accounts (implementation of 2008 SNA).
• Main goal developing indicators measuring the
  size of global production (relative to total
  exports)
• Perspective is that of the contract manufacturers
  (with the principals situated abroad).
• Focus on criteria for identifying companies
  engaged in global production.

7
2. Mexico INEGI paper

• (preliminary) Findings/conclusions
• Value added content of global production equals
  37 of total manufacturing output.
• Automotive industry is the most significant
  contributor to global production
• Questions
• Would a value added share relative to total value
  added (or GDP) not be a better measure?
• The VACGME ICP GVA is a partial approach.
  Could this analysis also be integrated into a
  TiVA / WIOD type of framework?

8
3. Hong Kong CSD paper

• Main features
• Hong Kong is an exceptional case of a globalized
  economy
• Merchandize trade value to GDP is 360 in 2013
• Exports of goods without passing Hong Kong are
  higher than exports shipped from Hong Kong.
• Processing arrangements, particularly with
  mainland China, have been in existence since the
  1990s.
• Availability of refined statistics (e.g. OP,
  QSMTA surveys) separating various global
  production arrangements e.g. processing,
  merchanting, GFP
• Processing and assembling (PA)
• Processing with imported materials (PIM) FGP?

9
3. Hong Kong CSD paper

• (preliminary) Findings/conclusions
• Changing from 1993 to 2008 SNA
• Upward adjustment of exports of goods (from 492
  to 509 US)
• 2008 SNA definitions lead to steeper export
  growth path
• Trade balance, goods versus services, shows a
  very different picture.
• Questions
• Does PIM refer to FGP arrangements as addressed
  in the Global Production Guide?
• Could this paper be used for a country case study
  in the Global Production Guide?

10

• Thank you!
• mark.dehaan_at_cbs.nl