Manual on Statistics of International Trade in Services

Contents
Foreword .................................................................................................................................................................... iii 
Acknowledgements ................................................................................................................................................... vii 
List of acronyms......................................................................................................................................................... ix 
Summary ..................................................................................................................................................................... 1 
Chapters 
I. Foundations of the Manual: general introduction and overview..................................................... 3 
A. Introduction ................................................................................................................................................... 3 
B. Set of recommended elements for phased implementation ........................................................................... 5 
1. Recommended core elements ................................................................................................................. 5 
2. Other 
recommended 
elements ................................................................................................................ 6 
C. Shape of the Manual ...................................................................................................................................... 7 
II. Conceptual 
framework
for the development of statistics on international trade in services.............................. 9 
A. Introduction ................................................................................................................................................... 9 
B. Need for a statistical framework on international trade in services............................................................... 9 
1. Globalization and multilateral services trade negotiations ..................................................................... 9 
2. The General Agreement on Trade in Services ...................................................................................... 10 
(a) Structure and guiding principles of GATS .................................................................................... 10 
(b) The four GATS modes of supply................................................................................................... 11 
(c) Services Sectoral Classification list - GNS/W/120 ........................................................................ 12 
C. Statistical systems and classifications related to trade in services............................................................... 12 
1. International.......................................................................................................................................... 12 
(a) System of National Accounts, 1993............................................................................................... 12 
(b) Fifth edition of the IMF Balance of Payments Manual.................................................................. 13 
(c) Central Product Classification, Version 1.0................................................................................... 13 
(d) International Standard Industrial Classification of All Economic Activities, Revision 3.............. 14 
(e) International Merchandise Trade Statistics.................................................................................... 14 
(f) International migration frameworks and the Recommendations on Statistics of International 
Migration ....................................................................................................................................... 14 
(g) Tourism Satellite Accounts: Recommended Methodological Framework .................................... 14 
2. Other statistical systems and classifications ......................................................................................... 15 
(a) Joint OECD-Eurostat Trade in Services Classification.................................................................. 15 
(b) OECD Benchmark Definition of Foreign Direct Investment......................................................... 15 
(c) OECD Manual on Economic Globalisation Indicators .................................................................. 15 
D. Approach and framework of the Manual..................................................................................................... 15 
1. Statistics on trade in services, labour and investment from BPM5....................................................... 16 
(a) Main BPM5 standard services components ................................................................................... 17 
(b) Labour-related flows of funds........................................................................................................ 17 
(c) Foreign direct investment .............................................................................................................. 17 
2. BPM5 
extensions .................................................................................................................................. 18 
(a) Analysis of balance of payments transactions by origin and destination....................................... 18 
(b) Extended Balance of Payments Services Classification ................................................................ 18 
3. Foreign affiliates trade in services statistics ......................................................................................... 18 
(a) FATS statistics: concepts and classification .................................................................................. 18 
(b) FATS statistics and other statistical frameworks ........................................................................... 19 
4. Statistical treatment of modes of supply: the simplified approach ....................................................... 20 
(a) Simplified statistical criteria .......................................................................................................... 20 
(b) Balance of payments statistics by modes of supply ....................................................................... 20 
(c) FATS statistics and modes of supply ............................................................................................. 23 
(d) Special problems in statistical treatment of mode 4....................................................................... 24 

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(e) Conclusion ..................................................................................................................................... 25 
III. Services Transactions 
Between
Residents and Non-residents.......................................................................... 26 
A. Introduction ................................................................................................................................................. 26 
B. Principles 
of 
recording................................................................................................................................. 26 
1. Concept and definition of residence ..................................................................................................... 26 
2. Valuation 
of 
transactions ...................................................................................................................... 28 
3. Other principles relating to the recording of transactions..................................................................... 28 
C. EBOPS......................................................................................................................................................... 29 
D. Transactions between related parties ........................................................................................................... 33 
E. Statistics by trading partner ......................................................................................................................... 34 
F. Modes of supply and EBOPS ...................................................................................................................... 34 
1. Allocation of modes of supply.............................................................................................................. 34 
2. Priorities for allocation to modes of supply.......................................................................................... 35 
G. Repairs on goods ......................................................................................................................................... 36 
H. Definitions of the components of the Extended Balance of Payments Services classification.................... 36 
1. Transportation 
services ......................................................................................................................... 36 
2. Travel ................................................................................................................................................. 38 
3. Communications 
services ..................................................................................................................... 40 
4. Construction 
services............................................................................................................................ 40 
5. Insurance 
services ................................................................................................................................. 42 
6. Financial 
services.................................................................................................................................. 43 
7. Computer and information services ...................................................................................................... 47 
8. Royalties and license fees ..................................................................................................................... 47 
9. Other business services......................................................................................................................... 47 
10. Personal, cultural and recreational services .......................................................................................... 50 
11. Government services, not included elsewhere...................................................................................... 50 
I. Alternative aggregations of service and non-service transactions ............................................................... 51 
J. Data 
collection............................................................................................................................................. 52 
K. Summary of recommendations .................................................................................................................... 53 
IV. Foreign affiliates trade in 
services
statistics ..................................................................................................... 54 
A. Introduction ................................................................................................................................................. 54 
B. Universe to be covered ................................................................................................................................ 57 
1. Ownership 
criteria ................................................................................................................................ 57 
2. Types 
of 
producers ............................................................................................................................... 59 
C. Time of recording ........................................................................................................................................ 60 
D. Statistical 
units............................................................................................................................................. 60 
E. Attribution of FATS variables ..................................................................................................................... 60 
1. By 
country ............................................................................................................................................ 60 
(a) Inward FATS ................................................................................................................................. 60 
(b) Outward FATS............................................................................................................................... 62 
(c) Note on the equal ownership of shares by residents of more than one country ............................. 62 
2. By activity and by product.................................................................................................................... 62 
(a) By activity...................................................................................................................................... 63 
(b) By product...................................................................................................................................... 64 
F. Economic variables for FATS ..................................................................................................................... 66 
1. Sales (turnover) and/or output .............................................................................................................. 66 
2. Employment.......................................................................................................................................... 68 
3. Value 
added .......................................................................................................................................... 68 
4. Exports and imports of goods and services........................................................................................... 69 
5. Number of enterprises........................................................................................................................... 69 
6. Other 
variables...................................................................................................................................... 70 
G. Compilation 
issues....................................................................................................................................... 70 
H. Summary of recommendations .................................................................................................................... 71 

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vi 
Boxes 
1. Services 
definition ......................................................................................................................................... 7 
2. International trade in services........................................................................................................................ 8 
3. Example of the measurement of construction services................................................................................ 41 
4. Estimation of insurance service charges...................................................................................................... 44 
5. Financial intermediation services indirectly measured (FISIM) ................................................................. 46 
6. Merchanting 
services................................................................................................................................... 48 
7. Measuring foreign direct investment ........................................................................................................... 55 
8. Immediate and ultimate investors................................................................................................................ 61 
Charts 
1. The four modes of supply: statistical criteria............................................................................................... 22 
2. Synthetic viewof modes of supply............................................................................................................... 23 
Tables 
1. Statistical coverage of modes of supply ...................................................................................................... 24 
2. Extended Balance of Payments Services Classification, including memorandum items ............................ 30 
3. ISIC Categories for Foreign Affiliates (ICFA)............................................................................................ 64 
4. Sample formats for FATS statistics............................................................................................................. 67