Foreign Affilia Tes Statistics FATS Inward and Outward

Foreign Affilia. Tes Statistics (FATS): Inward and Outward Michael E. Nielsen & Jon Mortensen EU Twinning Project: Globalisation Statistics State Statistics Service of Ukraine, 28 April 2015

Outline Why FATS Inward FATS Outward FATS Future/FRIBS… 2

Why FATS Statistics? Multinational enterprises (MNEs) play a key role in the global economy and foreign affiliates (of MNEs) contribute to a host country’s international competitiveness and welfare And provides access to new markets and new technologies/knowledge FATS are mandatory for EU-countries (since 2007) Adds value to FDI statistics with more detailed information on the economic impact of investments in terms of job creation, etc http: //ec. europa. eu/eurostat/statistics-explained/index. php/Foreign_affiliates_statistics_-_FATS 3

Inward FATS (IFATS) Foreign controlled enterprises resident in the country that compiles the statistics Residency of the ultimate controlling institutional unit (UCI) defines the nationality of an enterprise Control is generally defined as >50 per cent direct or indirect ownership Disseminated annually (t+20 months) 4

IFATS: Variables Country of UCI Turn-over (of affiliate) Number of employees Number of affiliates Activity (NACE) Thus, inward FATS describe how many jobs, how much turnover, etc. are generated by foreign investors in the host economy 5

IFATS: Sources Central Bank (FDI statistics) The statistical business register Annual reports, offical accounts of enterprises General enterprise statistics Thus based on existing data with no additional response burden on enterprises 6

IFATS: Results Enterprises by ownership in EU-28, 2011 7

IFATS: Results Enterprises by ownership in Denmark, 2012 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Number of enterprises Turn-over Foreign-owned Employees Total 8

OFATS Enterprises controlled from the compiling country, but resident abroad EU-regulation: Residency of the ultimate controlling institutional unit (UCI) defines the nationality of an enterprise …But the Danish survey covers all affiliates owned by Denmark-based enterprises regardless of UCI Control is generally defined as >50 per cent direct or indirect ownership Disseminated annually (t+14 months) 9

OFATS: Variables Dissiminated: Number of affiliates § Country of affiliates § Number of employees (of affiliates) § Activity (NACE) § Not dissiminated Country of UCI § Turn-over (of affiliates) § Thus, OFATS describe the number of employees, the activity and geography of foreign affiliates 10

OFATS: Sources Annual census compulsary survey Almost 5000 enterprises in Denmark - Reporting units § Approx. 15000 foreign affiliates - Statistical units § Dissimination Approx. 3500 Danish companies § Approx. 12000 foreign affiliates § Supporting sources 11

OFATS: Sources ODIN (a commercial database) FDI-statistics compiled by the Central Bank § Includes information on financial sector Annual reports from enterprises These sources are primarily used to create new survey population Country of UCI from IFAT 12

M Ro alta m an Cr ia o H atia un ga Cy ry pr u La s tv Cz ec Slo ia h va k R Lu ep ia xe ub m lic bo u G rg r Li eec th e ua Po nia rt ug Es al to n Ire ia la Sl nd ov en Po ia la Be nd lg iu Au m st N ria or w Fi ay nl an d Sp D ai en n m a Sw rk ed Un en ite d Ki Ital ng y d G om er m an Fr y an ce OFATS: Results Number of foreign affiliates, 2012 45, 000 40, 000 35, 000 30, 000 25, 000 20, 000 15, 000 10, 000 5, 000 0 13

Uk ra in Ca e na da Cz L ec at h v Re ia pu bl ic In di a Br az Be il lgi u Au m st ra Lit lia hu an ia Ru Ho ssi ng a Sw Kon itz g er la Sin nd ga po re Ita l Fin y Ne la th nd er la nd s Sp ai n Fr an ce Ch in a Po la nd Un ite U d Ki SA ng do No m rw a Sw y ed Ge en rm an y OFATS: Results Number of Danish Affiliates, top 25 (total=11 964) 1800 1600 1400 1200 1000 800 600 400 200 0 14

ile Ch pu Re s Sw ia ed Ge en rm an y Ch in a Un ite In d di Ki a ng do m A US ne do In Sin bl i ga c po Be re lgi u Au m st Ho rali ng a Sw Kon g itz er la nd Ru ss i M a e Ne x th ico er la nd Fin s la nd Tu rk e No y rw ay Br az il Sp ai n Po la nd Fr an Th ce ai la nd h ec Cz OFATS: Results Number of employees, top 25 (total=1, 3 mill. ). Ukraine #36 with 8015 emp. 100000 90000 80000 70000 60000 50000 40000 30000 20000 10000 0 15

Future/FRIBS Framework regulation integrating business statistics (FRIBS) IFATS Covering more activities (NACE Rev. 2 sections O-S) § A*38 alignment: we expect more detail in IFATS data, confidentiality spill-over to SBS, spill-back to IFATS confidentiality § OFATS New variables: Personnel costs, investments § Intra-EU affiliates included § 16

Thank you for your attention! Michael E. Nielsen (men@dst. dk) Jon Mortensen (jmo@dst. dk)