OECD

1
OECDs Trade IndicatorsProject (TIP)
Agenda Item 10b

• Methodological improvements and extended coverage

2
Introduction

• After the recent technical improvements, OECDs
  multidimensional Trade Indicators database has
  gained more and more popularity amongst users
  searching for more analytical statistics, in
  particular within the context of globalisation
  analysis.
• Methodological consistency for calculating
  indicators, as well as the innovative interactive
  Web-based query tool, presented at the last ITS
  Expert Meeting in September 2006, can be
  considered as strong points of TIP.
• Since the last meeting, TIP has been further
  evolving new indicators were added and new
  features, the radar charts, complete the already
  popular country profiles. The TIP is by now not
  only a well-established and popular statistical
  product, but also a unique working tool of OECDs
  Statistics Directorate.

3
Introduction

• The TIP database consists of several
  sub-datasets which have been merged under the
  header of Trade Indicators. While the Macro
  Trade Indicators cover a broader and more
  general view showing economic basis indicators
  typically without a sectoral breakdown, the
  Micro Trade Indicators allow an analysis at
  detailed commodity and activity level in
  different classifications. The last addition to
  the Micro Trade Indicators consisted in a
  breakdown by ICT Groups.
• The Internet site of the Trade Indicators has
  been improved and updated a user-friendly URL
  has been created. Links to the diverse TIP
  datasets within OECD.STAT can be found on the
  site, as well as the country profiles for
  download. The TIP dataset has been moved towards
  the globalisation theme (OECD.STAT).

4
Introduction

• The denominator of several indicators has been
  changed from OECD total to world total to take
  into account the increasing importance of
  countries outside OECD. This concerns especially
  the RCA and export performance indicators.
  However, this was not possible for all indicators
  due to missing world totals or missing coherent
  world totals in some cases. The metadata within
  OECD.STAT have been adjusted accordingly.
• To get a more pertinent picture of the
  development of individual OECD member countries
  in relation to the OECD average (or in relation
  to another OECD member country), a new
  interactive graphic module, based on radar
  charts, has been provided and been made available
  for download on the TIP website.

5
(No Transcript)
6
Progress made since the 7h ITS meeting in
September 2006

• Micro Trade Indicators by ICT Groups
• Information and communication technologies (ICT)
  have been at the heart of economic changes for
  more than a decade. ICT-producing sectors play an
  important role, notably by contributing to rapid
  technological progress and productivity growth.
  ICT sector contributions are significant and
  generally growing throughout OECD and also
  outside. In recognition of the also growing trade
  of ICT goods amongst countries, the Secretariat
  has taken the necessary steps to consistently add
  them to the battery of trade indicators.
• The recent analytical extension by ICT groups of
  the ICTS database allowed setting-up the new TIP
  dataset Micro Trade Indicators by ICT Group.

7
Progress made since the 7h ITS meeting in
September 2006
Degree of export specialisation (RCA) by ICT
Groups
8
(No Transcript)
9
Progress made since the 7h ITS meeting in
September 2006

• b) From OECD perspective to world perspective
• For the Micro Trade Indicators by SITC, HS and
  ICT Groups, the indicators Market share, RCA
  and export performance have been recalculated
  and refer to world totals now (instead of OECD
  totals, as before). This improves the
  significance of the respective indicators because
  the OECD share in the world total has decreased.
  Total merchandise trade, comprising both OECD and
  non-OECD aggregates and countries world-wide, is
  now the perspective.

• c) New concentration indicator on micro level
  Herfindahl
• A new indicator (within the micro trade
  indicators), the Herfindahl index, has been added
  to measure the geographic concentration of the
  merchandise exports. This indicator has been
  calculated for the SITC-, HS- and
  ISIC-classifications and will be added for the
  ICT-Groups soon.

10
Herfindahl Index (geographic concentration) for
SITC 7 Machinery and transport equipment
(exports)
STD/PASS/TAGS Trade and Globalisation Statistics
11
Progress made since the 7h ITS meeting in
September 2006

• d) New ways of interactive graphic presentation
• An additional graphical approach, in the form of
  interactive radar charts, has been made available
  for download on the Trade Indicators website.
  This chart (in xls-format) allows comparing the
  situation of one selected OECD country (for a
  selection of trade indicators, both macro and
  micro indicators) to the OECD average or another
  OECD country. In other words, the radar chart
  uses indexes of the indicators to enable a more
  distinctive look at where a country stands within
  the OECD.

12
Radar chat access via www.oecd.org/std/its/tradei
ndicators
13
Directions for further research

• The TIP has reached maturity. Future work and
  related improvements fall into two categories
  first, technical, IT-driven developments which
  permit a better understanding of complex patterns
  and more immediate access to the key messages of
  underlying information. The second category
  concerns substance, that is new or better
  indicators. Both categories are important.
• The development and extension of advanced
  visualisation options is still one of the key
  aspects for further work under the first category
  of the trade indicators. A good graphic
  presentation is an important element for
  international indicators. Though there are
  already country profile charts and interactive
  radar charts available now, these options do not
  yet represent the best solution in terms of
  graphics interface. Further developments in this
  domain will very probably depend on the future
  graphic software product which will be chosen for
  the whole OECD and the level of IT support for
  TIP. Investigations and feasibility studies are
  underway.

14
Directions for further research ctd

• Concerning substance, the inclusion of more and
  more trade in services data (detailed data by
  products and partner countries) continues to be
  an important development objective. Trade in
  services is already included in the macro trade
  indicators, but needs to be further developed for
  the expansion of the micro trade indicators for
  services.
• As could be shown, the current TIP indicators
  dataset is not a static one. The indicators will
  remain a pro-active and flexible tool for
  economic and policy analysis. Depending on
  resources and related maintenance costs more
  indicators should and will be added (the
  so-called trade plus indicators).
• Following a corporate management decision at
  OECD, the TIP dataset has been moved to the
  Globalisation Theme of OECD.Stat, the OECD data
  warehouse. This was in recognition of its very
  nature, namely key trade indicators as part of
  the broader globalisation process.

15
Directions for further research ctd

• Amongst the avenues to be included for possible
  further extension (or separate addition under
  Globalisation) are
• Links of customs sources with enterprise
  structural statistics, into trade indicators with
  the objective to develop new databases where
  trading is matched to enterprise characteristics,
  such as employment size classes, sector and
  partner country (see agenda item 8).
• Trade statistics by type of ownership of the
  enterprise, concentration of foreign trade by
  enterprises, impact of international groups of
  enterprises on trade statistics, and the like.
  Duplication with existing databases is to be
  avoided.
• New Trade Indicators to be added the work on new
  trade and globalisation indicators will be
  largely guided by the internal OECD Reflection
  Group on Globalisation Statistics. To ensure
  consistency with other international bodies, OECD
  invites selected International Organisations to
  be part of a Trade Indicators Development Group,
  convened by OECD.
• The role of re-imports and re-exports, inward and
  outward processing of goods in international
  trading.

16
Going beyond traditional statistical standard
classificationsICT - Information and
communication technology

• Delegates are invited to
• Comment on the TIP developments shown.
• Provide guidance to the Secretariat as to which
  areas as mentioned before - should be pursued
  as a priority and integrated into TIP. This would
  imply indicating negative priorities as well.
• Share similar national approaches, priorities and
  challenges with trade experts present.
• Indicate whether they could contribute to TIP in
  areas of relevance, but not covered at present,
  and would be ready to work with OECD.