The French statistics on enterprise groups and the globalization Raoul Depoutot, INSEE, FRANCE Dominique Francoz, INSEE, FRANCE
Dec 13, 2015
The French statistics on enterprise groups and the
globalization
Raoul Depoutot, INSEE, FRANCEDominique Francoz, INSEE, FRANCE
The economic context
• Restructuring of economic activity
• Globalization
• Outsourcing
Outline of the presentation
• The statistical system to observe enterprise groups
• The economic use to follow up the globalization
• The ongoing projects
The organization of information on enterprise groups
LIFI
DIANE
DREE
TREASURY BOARD
SUSE
The survey on FInancial LInks (LIFI)
• The target population :
Firms reaching one of the following criteria :– Total amount of equity interest > 1,2 M€– Number of employees > 500– Turnover > 30 M€– Head of an enterprise group– directly controlled by a foreign corporation
The survey on FInancial LInks (LIFI), cont’d
• Information included in the questionnaire :– Identification characteristic of the surveyed firm
– Information on the shareholders
– Information on the affiliates or subsidiary of the firm
The survey on FInancial LInks (LIFI), cont’d
• Variables included in the questionnaire :
For each shareholder of the surveyed company
For each subsidiary or affiliate of the surveyed company
- ID number- activity
- % of capital
For the surveyed company : ID number, main activity, corporation name, adress, legal status, number of employees, total value of majority and minority interests
- corporate name- adress (nationality)
- percentage of voting rights
The LIFI survey, cont’dDesigning each group of enterprises
• Statistical unit : enterprise group
• Definitions :– Enterprise group– Head of the group– Core of the enterprise group– Extended enterprise group
100 %
40 %
S4
S1
S2S3
S5
S12
S11
30 %
40 %
20%
80 %
Source : Insee Poitou-Charentes – Service statistique – Pôle national « Liaisons Financières »
The survey on FInancial LInks (LIFI), cont’d
• Need to complete this information– Enlarge the target population– Have more information on foreign activity
(foreign affiliates and foreign parent companies)
– Add economic variables
The LIFI survey, cont’d :
Source : Insee Poitou-Charentes – Service statistique – Pôle national « Liaisons Financières »
If F1 surveyed
?
E1F3
F2F1
G2G1?
Trésor
E1
France
F2
Abroad
F1
G1
E2E3
?
F3
?
Dree
Diane
DIANE
• To enlarge the target population– Private database edited by COFACE SCRL
and BVD– Information published by the French
corporation courts– Data on small firms
The DREE survey
• To better cover the affiliates abroad– Survey on French affiliates followed up by
the commercial offices in the French Embassies
– To have information on the ultimate host– To have economic information on the
French affiliates abroad (turnover, employees)
The Treasury Board information
• To better cover the foreign parent companies– Administrative information– To have information on the ultimate
beneficial owner– To better attribute a citizenship to the
firms under foreign control
The SUSE data
• To include economic data– Result of both administrative and survey data– At the level of legal units– Available :
• Income statement• Balance sheet• Main activity code• Breakdown of sales by product• Workforce characteristics
Some results …
Number of enterprise groups 2002
Share of economic activity under foreign
controlFrench groups 24 302Foreign groups 7 031 22,4%Total 31 333
incl micro-groups (<=500 empl.)Number of legal units involved French legal units 89 527Legal units under foreign control 17 686 16,5%Total 107 213Number of employees ('000)French groups 11 995Foreign groups 1 952 14,0%Total 13 947Value added (in M€)French groups 616,0Foreign groups 130,3 17,5%Total 746,3Source : INSEE (LIFI , SUSE), DIANE (co-edition Bureau Van Dijk/COFACE SCRL)
The use of the LIFI data in the economic analysis of globalization
• The weight of foreign firms in the economic activity
Breakdown of resident corporations (France – 2002)
0
10
20
30
40
50
60
70
80
90
100
Number of corporations Value added Own capital Number of employees
Independent corporation
Corp. of a listed French EG
Corp. of a non-listed French EG
Corp. of a foreign EG
Development of the foreign controlled economy
Employees ('000)
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
French EGs
Foreign Egs
Independent companies
The use of the LIFI data in the economic analysis of globalization
• The weight of foreign firms in the economic activity
• Globalization and outsourcing of French activity
The use of the LIFI data in the economic analysis of globalization
6,0
2,0
3,8
2,0
Indep.
EGs3.5
100% Fr
Foreign
France RoW
Millions of Employees
The current and future developments
• To consider enterprise groups as statistical units– To define economic entities in the frame of
group which will be the collection units (profiling)
– To develop a statistical register of EGs– To produce consolidated economic data on
EGs– To integrate the EG as a data collection unit
The current and future developments, cont’d
• To develop a statistical register of EGs– To define the continuity of EGs
• Develop relevant concepts for EGs demography• Analyze the result of mergers / split off
– To coordinate with other French statistical offices
– To improve the registration of foreign corporation (abroad)
The current and future developments, cont’d
• To produce consolidated economic data on EGs– To avoid double counts on some variables
(Financial assets, sales)
The current and future developments, cont’d
S2Consolidation of sales:
2500
6000
2001500
300
S3
S1500
S2b
250150
500
= Economic flow
Statistical RealS1 3300 2500S2 6250 6000S2b 350 200S3 2000 1500
The current and future developments, cont’d
• To produce consolidated economic data on EGs– To avoid double counts on some variables
(Financial assets, sales)
– To have a better information of the international activity of MNEs
To produce consolidated economic data on EGs : an example
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
1997 1998 1999 2000 2001 2002
Consolidated turnover - world
Consolidated turnover - France
The current and future developments, cont’d
• To produce consolidated economic data on EGs : some difficulties– Not compatible with the national territory
– No currently available for many EGS
– National sub-consolidation expansive
The current and future developments, cont’d
• To integrate the EG as a data collection unit– A first experience : the survey on intangible
assets (R&D and innovation, patents and licensing, marketing)
Thank you for your attention
Insee Poitou-Charentes – Service statistique – Pôle national « Liaisons Financières »