Manual on Statistics of International Trade in Services

Box 3. Example of the measurement of construction services
Enterprise A, resident in country A, provides construction services in country B valued at 10,260. To provide 
these services, enterprise A purchases inputs of materials and labour consisting of: 
units 
Materials (goods and services) and labour purchased in country A 
1 200
Of which: 
Goods 
645 
Services 
120 
Labour 
435 
Materials and labour purchased in country B 
6 655
Of which: 
Imported from country A
525 
Imported from country C
1 730 
Sourced in country B
2 290 
Labour
2 110 
Total cost of purchased inputs 
7 855
In addition, a gross operating surplus accrues to enterprise A of: 
2 405
Giving a gross value of construction services of: 
10 260 
The total value of the construction services produced is the sum of the inputs into the production process and the 
gross operating surplus accruing to the producing enterprise. Thus, the value of construction services is 10,260 
units. 
What would be measured in construction services trade between residents and non-residents? 
In country A 
In country B 
Construction abroad 
Construction in the compiling economy 
Credit 
10 
260 
a
Credit 
4 545 
b 
Debit 4 545 
b 
Debit
10 260 
a
If the goods valued at 645 units that are purchased in country A are shipped to country B for use in the 
construction process, the balance of payments compiler must ensure that they are excluded from the goods 
component of the balance of payments because they are purchases made by residents of country A from residents 
of country A, and not purchases made in country B. 
a
Gross value of construction services. 
b
Amount of goods and services purchased by enterprise A in economy B (the host economy), equal to 525+1730+2290 units; this 
amount would be recorded in 
other business services
under BPM5 recommendations.
 
3.95. 
Expenditure on goods and services in the host 
economy
includes expenditure by the construction 
enterprise on locally supplied items as well as 
expenditure in the host economy by the construction 
enterprise on goods and services that have been 
imported to the host economy, where the goods and 
services are for use on the construction site. In the