ESSnet on Measuring Global Value Chains ESSnet workshop Roma, 3-4 December 2012 Co-ordinator:

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ESSnet Measuring Global Value Chains

1. Globalisation indicators2. Methodological development and support for

International Organisation and Sourcing of Business Functions survey

3. Methodological development and support for Micro Data Linking project

4. Linking of FATS statistics with Business Registers

5. Analysis and dissemination

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What is Micro Data Linking?

Matching of statistical registers at the level of the statistical unit. In this case enterprise level.Validation of the statistical units presnet in the different statistical registers (Are we talking about the same units?)Combining relevant variables from the differents registers at enterprise level in new data sets.

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Reasons for micro data linking

• Establish new knowledge without increasing the respondent burden

• Add value to already collected data by integrating the different registers

• Fine tune surveys by focusing on collecting information which is not available from existing statistical registers

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Micro data linking: addressing the stove pipe approach

Fore

ign

trade

(Goods)

Fore

ign

trade

(Goods)

Fore

ign

trade

(Serv

ices)

Fore

ign

trade

(Serv

ices)

FDI

FDI

FATS

Inw

ard

FATS

Inw

ard

FATS

Outw

ard

FATS

Outw

ard

Inte

rnatio

nal

sourcin

gIn

tern

atio

nal

sourcin

g

Business Register Business Register

Acco

unts

statistics

Acco

unts

statistics

Rese

arch

, D

evelo

pm

ent

and in

novatio

n

Rese

arch

, D

evelo

pm

ent

and in

novatio

n

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BusinessRegister

Unique enterprise id no

R&D Statistics

R&D personnelR&D expenditures

Structural Business statistics

TurnoverValue addedEmployment

Foreign TradeStatistics

Imports of goodsExports of goods

InnovationStatistics

Type of innovation

Int’l organisation and sourcing of

business functions

Functions sourced Destination for sourcing

FATS Statistics

Nationality of ownership Foreign affiliates

Micro data linking: future projects

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Project phases

Establishing national longitudinal data sets with a harmonised structure and contents of variables from the statistical registers in question.Running of SAS programs based on a harmonised syntax. Consequently, no micro data will be exchanged but only tabular data as output of this exercise. Provision of policy relevant analytical outputs based on new information on economic globalisation and the impact on e.g. employment and trade patterns

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Project design

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Control GroupExtraction of control group

Weighted matching-keep most information in the data-no problem with insufficient population for the control group

Criteria (on the basis of the latest year)

-NACE section-International activity (foreign affiliates, sourcing)-Foreign trade in goods for manufacturing enterprises

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Analytical approaches

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Employment trends by function sourced internationally (Denmark, 2000-2007)

Median values of full-time equivalent number of employees

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Business functions

Core business functionProduction of final goods or services intended for the market / for third parties carried out by the enterprise and yielding income

Support business functionsSupport business functions (ancillary activities) are carried out in order to permit or facilitate production of goods or services intended for the market / for third parties by the enterprise

•Distribution and logistics•Marketing, sales and after sales services•ICT services•Administrative and management functions•Research & development, engineering and related technical services•Other support functions

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Impact analysis. Effects of International sourcing on domestic employment. Case: The Netherlands

Employment in enterprises grows slower as a result of international sourcing activities. Conclusion: international sourcing has negative impact on employment

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Using micro data linking as input for classification of globalised enterprises

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Conclusions (1)

1) Micro Data Linking is an efficient way to produce new statitical information without surveying2) Relative high matching rates indicates micro data linking is feasible3) But never total match due to demographic events such as deaths, change in type of ownership etc. 4) The set-up with identical data sets stored in the NSIs has worked well 5) The approach of sharing of common and centrally developed sas programmes worked excellent

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Conclusions (2)

How to deal with demographic events?Mergers and acquisitions vs. organic growth

Need for co-ordination of samples across surveys? Size of population can hamper micro data-linking

Which statistical unit is the most appropriate for globalisation statistics?Enterprise vs. Enterprise group

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Thank you!