Globalisation cube on OECD.Stat Pulling it all together
Introduction • OECD Handbook on Globalisation Indicators and the OECD Economic Globalisation Indicators generated original inputs for the analysis of globalisation in 2005. • Those publications strengthened OECD’s role as a hub to discuss global issues.
The definition of globalisation • “Dynamic and multidimensional process of economic integration whereby national resources become more and more internationally mobile while national economies become increasingly interdependent”OECD Handbook of Economic Globalisation Indicators, OECD, 2005, page 11.
Several steps in globalisation process 1/3 • First phase : Trade liberalization main driver in early phases of globalisation. • Specialisation by sector (inter industry trade). Trade in goods a way of overcoming trade barriers affecting factors (Capital, Labour, knowledge). • Specialisation by product (intra-industry trade). Flows of goods and factors become increasingly complementary.
Several steps in globalisation process 2/3 • Phase 2 :Fall in transportation cost and new technologies main drivers of globalisation. • As global value chains develop, specialization less dependent on geography and takes places within the firm at task level.
Several steps in globalisation process 3/3 • Phase 3: Production of knowledge goods and appropriation of property rights are increasingly separated. • As a result new processes of innovation are unfolding in a globalised world. • Geography may matter again as open innovation and consumer driven innovation becomes more localized.
OECD Reflection Group on Globalisation (March 2007) • Importance of core statistical areas such as trade, foreign direct investment, the role of multinational enterprises and technology diffusion. • But also need for broad compilation of globalisation indicators and their methodology. • Global issues related statistics (food, energy prices) may be useful but not directly related to globalisation (covered by the Factbook in the future).
Reflection group agreed following steps • Carry out a Stocktaking of ongoing Secretariat work in the area of globalisation statistics. • Following the results of the stocktaking exercise, a single Repository of all materials concerning globalisation statistics should be created. • This repository would include a, so-called, “Data cube” in OECD.Stat
The stocktaking exercise • Not final • Takes stock of the globalisation indicators that are already available in-house and disseminated across the diverse statistical themes of OECD.Stat and paper publications Room document 4 • Proposes a taxonomy to classify the different items in the Globalisation Cube.
The taxonomy: “Five globalisation themes” • Trade flows, • Mobility of capital and people, • International Diffusion of Knowledge • Educational flows • Science, Technology & Innovation • Global production chains • Sustainable environment,
1. Trade Flows • Trade structure (intra-industry trade & other trade indicators by industry) • Trade Indicators Project (NB: already available under Globalisation in OECD.Stat) • World Trade indicators (external database: WTO common dataset)
2.Mobility of Capital and People 1/2 • Migration flows • Total • Skilled • Mobility of health professionals and patients • Official Development Aid • Remittances
Mobility of capital and people 2/2 • Public Finance indicators • Public debt owned by foreigners • Financial accounts • Ratio on household share holding over Mutual funds share holding • Institutional investors • Securities/shares/loans issued by non resident/residents • Bank profitability • Foreign Direct Investment (NB: already available under Globalisation in OECD.Stat)
3. International Diffusion of Knowledge. 1/2 Education flows • Student flows • Graduation rates • Expenditure on educational institutions • Education related payments (from BoP data)
3. International Diffusion of Knowledge. 2/2 Science, Technology & Innovation • Patents (international cooperation) • Telecom traffic (internet infrastructure) • ICT-Trade • ICT-Employment • Internationalisation of R&D and technology
4. Global production chains • Activities of MNEs (NB: already available under Globalisation in OECD.Stat) • Intra-firm Trade • Offshoring • Data on imported inputs (Input-Output tables) • Production input (Steel)
5. Global Sustainable environment • Production & consumption of energy and energy flows. • Emission permit trade • Transportation flows Publication outputs included in the database: • EGI 2005 • EGI 2008
Questions to delegates. • Any views on how to assemble a coherent and pertinent set of globalisation indicators for economic and policy analysis? • Any suggestion on the taxonomy and how it could be improved ? • Any suggestion on globalisation indicators ?