1 The United States Experience in Collecting FATS Anne Flatness U.S. Bureau of Economic Analysis 2008 APEC Capacity Building Seminar-Workshop on the Measurement of International Trade in Services 2 October, 2008 Manila, Philippines 2 Bureau of Economic Analysis Data collection and dissemination agency Part of the U.S. Department of Commerce Compiles national and international accounts Gross domestic product International transactions accounts, also known as the balance of payments Separate data system for multinationals Regional statistics Industry statistics, including input/output (I/O) accounts 3 U.S Sales of Services Billions $ U.S. International Sales of Private Services Sales Abroad by Foreign Affiliates U.S. Cross-Border Exports 4 U.S. Purchases of Services Billions $ U.S. International Purchases of Private Services U.S. Purchases from Foreign-Owned Affiliates U.S. Cross-Border Imports 5 Legal Framework International Investment Survey Act of 1976 Expanded as the International Investment and Trade in Services Survey Act in 1984 Mandatory Confidential Paperwork Reduction Act 6 Conceptual Framework International guidelines IMF Balance of Payments Manual (5 th ed. BPM5) Sixth edition scheduled for 2008 OECD Benchmark Definition of FDI Sets world standard for FDI statistics System of National Accounts 7 United States Experience First collected FDI operations data for 1950, covering outward investment Collection became more regular and more detailed in the late 1970s / early 1980s Sales of goods and sales of services now reported separately and by destination More detailed breakdown of industry classifications 8 U.S. Collection Method Largely a survey-based system Benchmark surveys every 5 years Most comprehensive in subject matter Lowest reporting thresholds Annual surveys in interim years Higher exemption levels and fewer items Use statistical sampling Estimates are made for below-threshold companies 9 Types of Data Collected Balance sheets Income statements Sales Employment and employee compensation Research and development expenditures Taxes U.S. trade in goods Value added (estimates built up from other items) 10 Some Features of the Data on Services Supplied Through Affiliates Covers sales of services only; excludes goods and investment income (where included in operating revenue) Excludes U.S. cross-border trade, which is recorded in the BOP Foreign affiliates: Sales to foreign persons U.S. affiliates: Sales in the United States Covers majority-owned affiliates only 11 Some Features of the Data on Services Supplied Through Affiliates (Contd) Covers affiliates in all industries... ... but with services industries shown in greater detail Foreign affiliates classified in their country of location U.S. affiliates classified according to the country of their ultimate beneficial owner (UBO) 12 Recent Changes Improved measurement of insurance Old measure based on insurance-related operating revenue New measure based on normal losses; loss data collected on surveys Wholesale and retail trade Old measure regarded as sales of goods New measure captures the services component of sales using estimates of margin output 13 Current Projects Estimates covering banks Beginning in 2002, requested that banks report sales of services; plan to incorporate estimates in the near future Imputed services of banks and other financial firms (FISIM) Beginning in 2002, requested that banks report interest received and paid, plan to incorporate estimates in the near future 14 Conclusions BEA uses benchmark and annual surveys to collect data on FATS Surveys are mandatory and confidential Data presented by industry and by country of affiliate or UBO New measures of insurance and wholesale and retail services Expanding coverage to include banks