Measuring Globalisation: OECD Economic Globalisation Indicators 2010

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25 août 2010
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9789264084377 (HTML) ; 9789264084360 (PDF) ;9789264084353(imprimé)

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This second edition of the OECD Economic Globalisation Indicators presents a broad range of indicators showing the magnitude and intensity of globalisation. This process is becoming increasingly important for policymakers and other analysts, hence the need for a volume that brings together the existing measures, based on national data sources and comparable across countries. Together, the indicators shed new light on financial, technological and trade interdependencies within OECD and non-OECD countries.

Measures of globalisation include indicators on capital movements and foreign direct investments, international trade, the economic activity of multinational firms and the internationalisation of technology. In addition, the 2010 edition also includes indicators linked to the current financial crisis, portfolio investments, environmental aspects and the emergence of global value chains.

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  • Foreword
    Appropriate indicators that can measure the magnitude and intensity of the globalisation process are increasingly important to underpin evidence-based policy. This publication is the second edition of the OECD’s Economic Globalisation Indicators, which responds to the demand of policy makers.
  • Executive Summary
    The past decades have witnessed a rapid globalisation of economic activity which has significantly changed the outlook of the world economy. An increasing number of firms, countries and other economic actors take part in today’s global economy and all of them have become increasingly connected across borders. Globalisation results in a more efficient allocation of resources across countries and generates important welfare effects, including higher productivity and efficiency, increased average incomes and wages, greater competition, lower prices and increased product variety and quality. At the same time, the process of globalisation also raises concerns in many countries, and needs to be well managed to ensure its benefits are widely distributed.
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  • Ouvrir / Fermer Cacher / Voir les résumés Globalisation and the Crisis

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    • The world economy prior to the crisis
      In 2007, macroeconomic imbalances between countries and regions were growing but most of the world enjoyed strong economic growth. Emerging countries, and China and India in particular, recorded high growth.
    • The financial crisis in the United States
      The US household savings rate, which was already among the lowest in the OECD area, turned negative in 2005, owing to the build-up of large debts for housing. Rising housing prices created a "wealth effect" which encouraged households to contract excessive amounts of debt. In the United States between 2003 and 2008, mortgage debt increased strongly, with outstanding home mortgages nearly doubling.
    • Global economic crisis: stock market trends
      An expanded supply of credit and an underassessment of risk combined with the use of intermediate (often unregulated and nontransparent) lenders to gradually undermine the stability of the financial system. Owing to the extent of the contagion across assets, institutions and countries, the financial crisis rapidly acquired a global character (Blanchard, 2009).
    • Global economic crisis: GDP growth
      Most OECD countries recorded positive economic growth in 2007. While growth of gross domestic product (GDP) was relatively strong in the OECD area, it was much stronger in the emerging BRICS (Brazil, the Russian Federation, India, China and South Africa). As in previous years, China recorded doubledigit growth.
    • Impact of the crisis on international trade
      The decline in international trade in 2008 triggered by the crisis has been the deepest decline on record, much deeper than during the Great Depression. The fact that the downturn was steeper in terms of value than of volume suggests that a "price effect" also played a part in some countries. The scale of the decline reflects the increasing interdependence of trade, which can accelerate the spread of cyclical effects. Hence, the recession caused by the crisis intensified the drop in world trade, which resulted from the concurrent decline of trade flows in almost every country of the world.
    • Synchronisation of collapse in international trade
      The dramatic collapse in world trade in 2008 seems to have resulted from strongly synchronised drops in trade across countries due to the combined effects of several factors: the credit crunch, the spread of global value chains, and falling consumer and producer confidence.
    • Impact of the crisis on foreign direct investment
      In 2008, inward foreign direct investment (FDI) was down overall in developed countries, particularly in the OECD area (–35%), but increased in non-OECD countries (+13%), particularly in Asia. FDI declined in the European Union by around 43% while it increased in Japan by 11%. In contrast, foreign direct investment increased by some 16% in the United States in spite of the crisis.
    • Impact of the crisis on mergers and acquisitions
      The fall in international investment during/after the crisis is also reflected in recent figures on mergers and acquisitions (M&As). International M&As are on track to decline by more than 50% in 2009 from 2008. However, there are major differences across countries and regional zones.
    • Multinational enterprises and the crisis
      Foreign affiliates contribute to a host country’s international competitiveness through several channels. They provide access to new markets and new technologies for domestic suppliers and buyers along the value chain, they generate knowledge spillovers to domestic firms, and they invest a higher share of their revenue in research and development (R&D).
    • Global value chains and the crisis
      The link between the economic crisis and global value chains is not straightforward and has recently received a lot of attention in policy discussions. However data on the effects of the crisis are scarce. Figures on international trade and foreign direct investment have decreased dramatically in the aftermath of the crisis (see earlier), and some data also show that the activities of multinationals have been hard hit by the crisis.
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  • Ouvrir / Fermer Cacher / Voir les résumés Trends in International Trade and Investment

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    • International trade and investment flows
      International trade and investment flows are the primary drivers of globalisation. Measured in the balance of payments, current accounts encompass exports and imports of goods and services, along with all types of income generated by international investment. The three categories of international investment are: portfolio investment, direct investment and other investment. Because of their particular nature, flows involving derivative instruments are dealt with separately.
    • Trade of goods
      Since 2003, Germany has been the OECD’s leading exporter of goods, and the United States has been the foremost importer. In recent years some non-OECD countries also show strong trade performance in goods, becoming large exporters as well importers of goods.
    • Trade of services
      While OECD economies are increasingly geared towards services (in many, services account for twothirds of GDP), trade in services remains quite limited. Many service activities require a local presence and do not lend themselves to being traded internationally. Moreover, services that can be exported or imported are still subject to numerous restrictions, as the Doha Round accords of the General Agreement on Trade in Services (GATS) have yet to be ratified.
    • Portfolio investment flows
      Portfolio investment is quite volatile, but it accounts on average for a third of the aggregate value of all investment categories.
    • Foreign direct investment flows
      Since the latter half of the 1980s, foreign direct investment has played a fundamental role in international economic integration. Worldwide it has been the most dynamic factor in industrial restructuring.
    • Other investment flows
      Between 2005 and 2008, other investment flows took on greater importance than at the beginning of the 2000s. Their average value is now close to that of portfolio investment and nearly twice that of direct investment.
    • Investment income flows
      Investment income relates to all three categories of investment: portfolio investment, direct investment and other investment. Since 1997, the United States has generated the largest net income (credits minus debits) in absolute value. The bulk of US income stems from direct investment and, to a lesser extent, from other investment, whereas net income from portfolio investment is negative.
    • Current account and financial account balances
      Following the double-entry accounting rules for establishing the balance of payments, the sum of the current account and the capital and financial account is theoretically equal to zero. As a result, the current balance and the balance of the financial account are theoretically symmetrical. Nevertheless, because data are in many cases compiled independently from different sources, this may not be the case.
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  • Ouvrir / Fermer Cacher / Voir les résumés International Trade of Goods and Services

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    • Trade as a percentage of GDP
      International trade in goods and services illustrates countries’ integration into the world economy. In relation to their gross domestic product (GDP), small countries are generally more integrated. They tend to specialise in a limited number of sectors and, to satisfy domestic demand, they need to import and export more goods and services than larger countries. Size alone, however, does not determine the level of trade integration.
    • Trade balance as a percentage of GDP
      Trade balance data for 2000 and 2007 for OECD countries, OECD accession countries and countries of the Enhanced Engagement Programme (EEP) vary widely. Some countries are in surplus or in deficit in both years. Countries’ surpluses or deficits may deteriorate, improve or remain stable.
    • Merchandise trade with the rest of the world
      OECD’s trade deficit grew steadily during the reference period to reach USD 942 billion in 2007. A detailed analysis of the trade balance of the United States, Japan and the European Union reveals different dynamics.
    • Merchandise trade with partners China and Hong Kong (China)
      The OECD area’s recent trade performance is closely linked to trade with China and Hong Kong (China): (almost) half of the total OECD trade deficit is due to its deficit with these partners. The deterioration has accelerated since 2002 and exceeded USD 500 billion in 2007.
    • World export market shares
      The United States remained the largest exporter of goods and services in 2007 with 9.6%, despite a marked decrease of almost five percentage points between 2000 and 2007. Germany, the OECD country with the second highest share, increased its market share by almost 1.1 percentage point (from 7.9% to 9.0%) in the same period.
    • World export market shares (cont.)
      The (geometric) average annual growth rates of market shares for total trade, for 2000 to 2007, show the differences in countries’ export performance. The OECD member with the highest average growth rate was the Slovak Republic (an average annual increase of 11.1%), followed by the Czech Republic (+8.7%) and Poland (+8.0%). The largest average decreases were observed in Canada (–5%), Japan (–5%) and the United States (–4.9%).
    • Geographical distribution of shares of exports of goods
      In 2007, Germany was the largest exporter of goods to the European Union (EU25) with an export market share of 17.7%, slightly higher than in 2000 (16.4%). During the same period, France, the United Kingdom, the United States and Japan recorded losses in export market shares. The export shares of the Netherlands and Belgium increased notably, as did those of Poland, the Czech Republic and Hungary. China and the Russian Federation with 5.2% and 3.4%, respectively, of total exports to the European market also had significant increases.
    • Geographical distribution of shares of export of goods (cont.)
      Between 2000 and 2007, some OECD countries lost large shares of exports to India: Belgium (from 12.1% to 6.0%), the United Kingdom (from 11.8% to 4.8%) and Japan (from 9.4% to 5.1%). In contrast, China’s export shares increased from 5.9% in 2000 to 19.7% in 2007. This trend illustrates the growing "southsouth" trade that is gradually replacing traditional trade links.
    • Geographical distribution of shares of exports in services
      The United States is by far the largest OECD exporter of services (relative to available OECD countries in 2000 and 2006) to the European Union. Its share has however weakened, from 26.6% in 2000 to 22.6% in 2006. The United Kingdom, Germany, Spain and Japan have instead slightly improved their export shares over the period.
    • Import penetration of goods and services
      The highest penetration of imports of goods and services is observed in smaller countries such as Luxembourg (import penetration rate of 218% in 2007), Belgium (88%), the Slovak Republic (86%), Hungary (80%) and Ireland (78%). Import penetration is lowest in larger countries such as the Japan (16.2%) and the United States (16.4%).
    • Sensitivity of trade flows to price and income changes
      The sensitivity of trade flows to price changes is measured through price elasticity. For most OECD countries, price elasticities of both imports and exports are negative and inelastic for the period from 1970 to 2006. This means that, when the price goes up, the trade volume decreases but by less than the price increase. Mexico, with an elasticity of –1.38, is the only country where imports are relatively more sensitive to a price change. Although trade flows react in general rather insensitively to prices changes, relative sizes of the sensitivity vary significantly. For imports, the price elasticities of eight countries are less than 0.2 in absolute terms and those of seven countries are more than 0.4 in absolute terms. Furthermore, export elasticities of two countries are less than 0.2 and those of ten countries are more than 0.4.
    • Intra-regional trade
      Intra-regional trade has become more prominent following the increase in regional integration agreements in some major areas (EU, NAFTA, ASEAN and MERCOSUR). Nevertheless the share of intraregional trade in world trade (which also depends on the number of member countries and the trade size of the region) has not grown significantly in recent years.
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  • Ouvrir / Fermer Cacher / Voir les résumés Foreign Direct Investment

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    • General foreign direct investment trends
      Foreign direct investment transactions inform about inward and outward investments within a given period. Both inflows and outflows are estimated after deducting disinvestments and reimbursement of intercompany loans from new investments. The difference between inflows and outflows indicates whether a country is a net exporter or importer of capital in the form of FDI; this is referred to as total net flows. As shown in figure D.1.1, the OECD area is traditionally an exporter of FDI capital as total FDI outflows from the region are higher than total inflows.
    • Foreign direct investment flows by type of financing
      Foreign direct investment comprises three types of transactions: equity finance, reinvestment of earnings and intercompany loans.
    • Foreign direct investment stocks
      The underlying motivation of direct investment is to establish a long-term relationship between the direct investor and the direct investment enterprise. FDI stocks provide the basis for structural analysis of investments accumulated over time. Expressed as a percentage of GDP, FDI stocks provide comparative analysis across countries of the extent of the FDI relationship between the direct investor and the direct investment enterprise.
    • Source and destination of foreign direct investment stocks
      The analysis by partner country indicates the interdependence of economies. OECD countries’ overseas investments are traditionally concentrated on investments in non-resident enterprises located within the OECD area. Non-OECD countries attract only a smaller portion of OECD capital and their share in the total outward investment position of OECD countries has grown more slowly than overall investments in the OECD area.
    • Foreign direct investment stocks in manufacturing industries
      Detailed foreign direct investment positions classified by industry sectors are compiled by the OECD. These series enable measures of the contribution of various sectors of individual countries to the global economy, as well as measures of the dependence of host economies on sectors of investment from abroad. For the convenience of the present document, industries are aggregated into two main categories: a) manufacturing; and b) services (see next section). A sector not covered in the analysis is the primary sector. In addition, confidential data which cannot be disclosed to the public are included in category "unallocated".
    • Foreign direct investment stocks in service industries
      The relative decline in investments in manufacturing industries (see previous section) was offset by increase of investments in services sector. The share of investments became more pronounced as from the mid 1990s, accounting for around 40% of total OECD investment stocks (inward investments at USD 760 bil lion and outward investments at USD 950 billion).
    • Foreign direct investment income
      Net direct investment income is measured after netting income of resident direct investment enterprises (debits) and income of affiliates abroad (credits). Equity income forms the largest share of direct investment income.
    • Rate of return on direct investment
      The rate of return on direct investment is calculated as a ratio of direct investment income to direct investment positions at a given point in time. This indicator contributes to the analysis of the profitability of enterprises even though other information is necessary for a complete assessment.
    • Direct investment dividends
      This indicator usually contributes to the assessment of the profitability of direct investment enterprises, along with the analysis of reinvestment of earnings. It is calculated: a) as a ratio of dividends paid by resident enterprises to their non-resident direct investors (debits) over inward FDI positions; and b as a ratio of dividends received by resident investors from foreign affiliates (credits) over outward FDI positions. Increases in the ratios generally imply improvements in the profitability of enterprises. However, a complete assessment of the profitability of enterprises cannot be based solely on statistical observations but have to be complemented by other factors.
    • Cross-border mergers and acquisitions
      Mergers and acquisitions (M&As) refer to the change of ownership in existing enterprises to achieve strategic and financial objectives. Enterprises engage in cross-border M&As for several reasons: to strengthen their market position by expanding their businesses to other opportunities on the global market; to obtain a critical size in the world market; to exploit other firms’ complementary assets such as innovations, technology, etc.; to access other advantages such as company reputation, economies of scale, brands or design; to diversify products and markets, etc.
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  • Ouvrir / Fermer Cacher / Voir les résumés Internationalisation of Science and Technology

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    • R&D in OECD and non-OECD economies
      The landscape for technology and knowledge has become increasingly global. While research and development (R&D) investments are still heavily concentrated in OECD countries, non-OECD economies account for a growing share of the world’s R&D. In 2007, non-OECD countries for which data are available (see box) accounted for almost 16% of the business sector R&D expenditure (expressed in current USD purchasing power parity [PPP]) of OECD and non-OECD economies combined.
    • Sources of R&D funding from abroad
      Business research and development (R&D) is financed by funds provided from within a country and from abroad. Foreign sources include other businesses, public institutions (government agencies or universities) or international organisations. According to the Frascati Manual, foreign-funded R&D includes, for example, R&D performed by foreign affiliates when funded by the parent company (located abroad), but it excludes R&D that is funded domestically.
    • R&D investments and multinationals
      Multinational firms play an important role in investments in research and development (R&D) across the world. While they fund a large share of cross-border investments and are as such important vehicles for the international transfer of technology, they are themselves important investors in R&D.
    • Triadic patent families
      The internationalisation of knowledge and technology is also reflected in the increasing number of triadic patent families. In 2007, about 52 000 were filed worldwide compared to something less than 42 000 ten years earlier.
    • International co-operation in S&T
      The technological activities of (multinational) firms have become increasingly internationalised. In the search for new technological competences, better adaptation to markets and lower research and development costs, companies are moving research activities overseas more intensively. The information contained in patents makes it possible to trace the internationalisation of technological activities and the circulation of knowledge among countries. In addition, collaboration with foreign partners increasingly plays an important role as firms gain access to a broader pool of resources and knowledge at lower cost and are able to share risks with partners.
    • International co-operation in science
      The co-authorship of research publications provides a direct measure of collaboration in science. Indicators of co-authorship help to understand how knowledge is created among researchers and how collaboration in science is changing. Co-authorship may involve researchers in the same institution, in the same country, or in two or more countries.
    • Technology balance of payments
      The internationalisation of technology is also reflected in the technology balance of payments, since payments and receipts reflect to some extent crossborder trade in research and development (R&D) outcomes. The technology balance of payments measures disembodied international technology transfers: licence fees, patents, purchases and royalties paid, know-how, research and technical assistance. Unlike R&D expenditures, these are payments for production-ready technologies.
    • Technology balance of payments and domestic R&D activity
      A country’s technological development can reflect the choice between domestic production of technology/inventions [via a high national research and development (R&D) effort] or absorption of foreign technology (via the acquisition of foreign technologies and the payment of licensing fees and royalties).
    • Trade in knowledge-intensive goods
      Knowledge-intensive goods have been among the most dynamic components of international trade over the last decade. A country’s ability to compete in hightechnology markets is therefore important to its overall competitiveness in the world economy.
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  • Ouvrir / Fermer Cacher / Voir les résumés Internationalisation of Human Capital - Highly Skilled

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    • Internationalisation of higher education
      Various forms of cross-border education have been developed in recent decades (e.g. mobility of educational programmes and institutions across borders) and contribute to the internationalisation of the higher education system. Student mobility in tertiary education is an important illustration of this.
    • International mobility of doctoral students
      International mobility of doctoral students can be used as an indicator of the internationalisation of the higher education sector as well as of the research system. It also highlights the attractiveness of advanced research programmes and in some cases the existence of career opportunities for junior researchers in the host country. Previous research has shown that doctoral students contribute to the advancement of research in the host country during their studies and afterwards. When returning home, they bring back new competences and connections with international research networks.
    • S&E doctorates awarded and postdoctoral appointments to foreign citizens in the United States
      The United States, like France and the United Kingdom, educates large numbers of foreign students. Of the 45 600 doctorates awarded in 2006, two-thirds were in science and engineering (S&E) and 38% of new graduates in these fields were foreign citizens with temporary visas. Over the past decade, the US higher education system has granted an average of 9 500 new S&E doctorates to foreign citizens each year; the number exceeded 12 700 in 2006.
    • Foreign scholars in the United States
      The presence of foreign scholars in US higher education institutions is an indicator of the international attractiveness of the country’s universities and of opportunities for researchers in the United States.
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  • Ouvrir / Fermer Cacher / Voir les résumés Internationalisation of Environmental Technology

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    • The changing geography of environmental innovation
      Most innovation in "environmental" technologies takes place in OECD economies. From 1978 to 2006, almost 98% of all patents pertaining to air and water pollution control technologies were deposited by inventors from OECD countries. Japan, Germany, the United States, France and the United Kingdom were the most active. Korea has also become remarkably active in recent years.
    • Transfer of environmental technologies
      Environmental technologies that mitigate crossborder (i.e. SO2) or global pollutants (i.e. CO2) benefit all countries. However, since much relevant innovation occurs in OECD countries, some transfer from developed to developing countries will be required to address environmental problems worldwide.
    • Trade in environmental goods
      Exports of environmental goods in the OECD area reached USD 370 billion in 2006, or 1% of its gross domestic product (GDP) and nearly 6% of its merchandise exports. In the same year, the BRICS (Brazil, the Russian Federation, India, China and South Africa) exported USD 43 billion, which accounted for almost 1% of their GDP and 2.7% of their total merchandise exports. Over the last four years, trade in environmental goods has grown dynamically, increasing faster than total merchandise trade, particularly in the BRICS, where exports have grown at an annual average rate of 35%.
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  • Ouvrir / Fermer Cacher / Voir les résumés The Importance of Multinational Enterprises

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    • Inward activity
      In 2007, the share of foreign-controlled affiliates in total manufacturing turnover ranged from nearly 80% in Ireland to 3% in Japan. Among G7 countries, foreign presence in manufacturing was strongest in Canada and the United Kingdom, followed by France, Germany, the United States and Italy. The percentage in Japan was the lowest of any OECD country for which data were available.
    • Inward activity
      Between 1999 and 2007, aggregate employment in the manufacturing sector dropped sharply in most countries. This trend significantly changes the business sector, with services gaining in importance compared to manufacturing.
    • Inward activity
      In contrast to the manufacturing sector, employment has grown strongly in the services sector during 2000-06. In all countries except Finland and the Netherlands, employment grew significantly in foreign affiliates as well as in national firms. Remarkably, employment grew more for foreign affiliates than for national firms.
    • Inward activity
      Foreign presence on the industry level illustrates some major differences across industries (high, medium and low technology) and countries.
    • Inward activity
      Foreign presence is somewhat less strong in the services sector than in manufacturing. Again, there are important differences between individual industries and countries.
    • Headquarters
      Data on the activity of parent companies have only recently been requested as part of OECD surveys, and few member countries have been able to provide the information so far. One reason for the differences observed between countries may be the method used to consolidate data for enterprise groups.
    • Outward activity
      The ratio of the turnover of affiliates abroad to the turnover of parent companies at home can be used as an indicator of globalisation. This indicator should however be interpreted with care, since employment and turnover created abroad does not come at the expense of the home country. On the contrary, foreign activities often benefit home country activities and reinforce the global competitiveness of the multinational company.
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  • Ouvrir / Fermer Cacher / Voir les résumés The Characteristics of Multinational Enterprises

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    • Firm size
      A comparison of the average employment of foreign affiliates and firms under national control shows that foreign affiliates are significantly larger than national firms. This is true for all countries.
    • Average labour productivity
      In addition to being larger on average than firms under national control, foreign affiliates also display higher levels of (apparent) labour productivity. Without exception, foreign affiliates have higher productivity than firms under national control. The differences between the two types of firms are especially large in Ireland and Hungary.
    • Average wage
      In all countries for which data are available, average compensation per employee is higher for foreigncontrolled affiliates than for national firms both in manufacturing and services industries. Average wages are higher in the manufacturing sector than in the services sector.
    • Profitability
      The share of gross operating surplus (profit) in the turnover of foreign-controlled affiliates could be used as one indicator of the profitability of foreign-owned investments in host countries. However, comparisons of the profitability of foreign affiliates should be interpreted with care, given differences in regulatory environments, tax rules, etc., in different countries. Previous research has shown the importance of transfer pricing in the observed profitability of affiliates of multinational companies in different countries.
    • Export and import propensity of foreign affiliates
      Affiliates under foreign control engage not only in serving local markets in the host country but often also serve other (neighbouring) markets. In addition, they produce inputs for other affiliates in the multinational network. This intra-firm trade involves the export and import of nearly finished goods destined for affiliate firms that are mainly involved in marketing and distribution but engage in little additional manufacturing processing.
    • Intra-firm trade in selected OECD countries
      Since part of foreign affiliates’ production is used as intermediate inputs by parent firms and other affiliates within the multinational network, intra-firm trade has taken on greater importance. Over 2000-07, the share of intra-firm exports in total exports of manufacturing affiliates under foreign control ranged between 15% and 50% in several of the countries for which relevant data are available.
    • Intra-firm trade and impact on the trade balance
      Data for 2007 show that the deficit on the US trade balance was mainly the result of the activities of firms under national control. Affiliates under foreign control in the manufacturing sector only contributed 13% to the global trade deficit of the United States compared to 87% for firms under US control.
    • Intra-firm trade and impact on the trade balance
      The share of foreign affiliates amounted to about 7% of exports from Japan and 13% of imports to Japan. Thus, trade of foreign affiliates in Japan seemed to play a rather limited role in Japan’s international trade.
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  • Ouvrir / Fermer Cacher / Voir les résumés Multinational Enterprises and R&D

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    • Inward investments in R&D
      Between 1997 and 2007, research and development (R&D) investments by foreign affiliates in the OECD area increased in value by USD 53 billion in purchasing power parity (PPP). Increases were observed in all major countries: the United States attracted USD 22.6 billion, Germany USD 8.9 billion, the United Kingdom USD 3.7 billion, Japan USD 5.1 billion, France USD 2.3 billion and Canada USD 1.9 billion.
    • Inward activity: importance of foreign affiliates in host countries' R&D
      The importance of foreign affiliates in national research and development (R&D) investments differs considerably across countries. In 2007, the share of foreign affiliates in business-sector R&D expenditure ranged from 5% in Japan to over 70% in Ireland. In Hungary, Belgium, the Czech Republic and Austria, which have many foreign multinationals, foreign affiliates were responsible for over half of the R&D investments.
    • Inward activity
      The share of foreign-controlled affiliates in the total number of manufacturing-sector researchers tends to be slightly smaller than the corresponding ratio for research and development (R&D) expenditures. Information on the number of researchers working for foreign affiliates in the services sector has not so far been available.
    • Inward activity
      The sectoral breakdown of the research and development (R&D) expenditure of foreign affiliates shows that in most countries the bulk of research is performed in the manufacturing sector. This is directly related to the fact that foreign affiliates are more active in manufacturing industries.
    • Inward activity
      A closer look at the sectoral dimension of research and development (R&D) investments by foreign affiliates shows a particularly high share of foreign affiliates in R&D investments in smaller host countries.
    • Inward activity
      European investment in the United States in 2007 accounted for over three-quarters of aggregate foreign research and development (R&D) investment. The leading R&D investing country in the United States was the United Kingdom, with 26% of the R&D investment of foreign-controlled affiliates, followed by Switzerland (15%), Germany (14%), France (13%) and Japan (10%).
    • Outward activity
      Comparing the research and development (R&D) investments of a country’s affiliates abroad with those of foreign-controlled affiliates in that country gives a first, albeit incomplete, picture of R&D flows across countries. The contribution of multinational enterprises’ affiliates to R&D investments in home and host countries is very complex and cannot be grasped in simple comparisons.
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  • Ouvrir / Fermer Cacher / Voir les résumés Global Value Chains as a New Form of Globalisation

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    • Production depth and export share of production
      The globalisation of value chains is central to today’s globalisation process. It is linked to the growth of global production networks in which multinational companies play an important role and has resulted in the physical fragmentation of production with an optimal location of the various stages. It has thus given rise to significant firm restructuring to include outsourcing and offshoring.
    • Intra-industry trade
      Simultaneous exports and imports within the same industry are generally labelled as intra-industry trade. They typically occur among rich countries with a similar economic structure and level of development that are geographically close. Intra-industry trade often accompanies foreign direct investment, as multinational companies locate affiliates in different countries and trade goods and services between the affiliates and the parent company.
    • Trade in intermediate goods
      Due to the increasing importance of international production sharing and global value chains, trade in intermediate inputs has been steadily growing. Previous research has shown that multinational companies are more dependent on international sourcing than "domestic" firms. Intra-firm trade among affiliates and the parent company within the multinational network has resulted in higher trade flows of intermediate inputs and a higher ratio of use of foreign inputs over domestic inputs.
    • Trade in intermediate goods: geographical distribution
      The geographical distribution of intermediate imports of goods and services shows that in value the largest transactions are within and among three regions: Europe, North America and Asia. In the OECD area most inputs are sourced from within the OECD area; when accession countries and enhanced engagement economies are added, about 85% of trade flows are accounted for.
    • Trade in intermediate goods
      Industries that produce imported intermediates are more or less the industries that "traditionally" produce inputs for other domestic industries: mining and quarrying, chemicals, metal products, transport and storage, and motor vehicles.
    • Offshoring/outsourcing abroad
      In line with the increasing importance of imported intermediates, offshoring or outsourcing abroad has increased in almost all countries over 1995-2005. In Luxembourg, Ireland, Hungary, the Slovak Republic and Estonia, the sourcing of intermediates abroad has increased significantly.
    • Offshoring/outsourcing abroad
      The offshoring indicator calculated separately for manufacturing and services shows that except for Luxembourg and Ireland, international sourcing of intermediates is on average more important in manufacturing. The specific cases of Luxembourg and Ireland are likely to be due to the significant presence of financial and call centre activities in these countries.
    • Offshoring/outsourcing abroad by technology level
      The sourcing of intermediates abroad appears to be more important in higher-technology than in lowertechnology industries (higher-technology industries are defined as high- and medium-high-technology industries, ISIC Rev. 3: 24, 29-33, 35; lower-technology industries are defined as medium-low- and lowtechnology industries, ISIC Rev. 3: 15-23, 25-28, 34, 36-37). In most countries the offshoring indicator is higher for higher-technology industries than for lowertechnology industries, owing to the generally greater complexity of technology-intensive goods which typically require a broad range of inputs.
    • Vertical specialisation
      With the emergence of global value chains, imports and exports increasingly move together since companies’ production processes are increasingly characterised by sequential production and movements back and forth. This vertical trade is made up of intrafirm trade within multinational companies as well as arm’s length relations between independent companies.
    • Import content of exports by partner countries
      The distribution of the vertical specialisation measures by partner countries/zones shows the importance of distance and trade costs for vertical trade. Countries tend to source intermediates particularly from neighbouring countries and incorporate them in their exports.
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