1

Canada’s trade in services by industry■

Statistics Canada

Presentation for OECD-Eurostat Expert

Meeting on Trade in services

September 19th, 2007

2

Description of Canadian statistics

Issues with the current methodology

Redesign of the trade in services program: improved methodology

PresentationPresentation

3

Transactions by industry available for commercial services (all services excluding travel, transportation and government services) 26 categories of commercial services 8 industrial groups: 2 for goods and 6 for services Based on North American Industrial Classification (NAICS) 1 memorandum item for ICT industry No geographical breakdown Available since reference year 1999 Plan to backcast to 1990

Description of Canadian statisticsDescription of Canadian statistics

4

2005 Based on North American Industrial Classification System

Commercial services by category and by industry

Total, goods

producing

industries

Manufacturing [31-33]

Other goods

producing

industries

Total, service

s produc

ing industr

ies

Trade and

transportation

Information,

culture and arts

Finance and

insurance [52]

Professional,

scientific &

technical

services [54]

Management of compan

ies & enterprises [55]

Other service

s produci

ng industri

es

Memorandum

item: Information & communicatio

n technol

ogy

CREDITS (in millions of C$)  

Total, commercial services 6,158 5,401 757 30,731 3,800 7,337 6,351 9,991 921 2,330 10,163

Communications services 200 195 5 2,430 998 1,278 0 68 30 55 1,519

Construction services 57 52 5 165 11 0 0 125 28 1 0

Insurance services 11 11 0 3,877 0 0 3,640 1 231 5 0

Other financial services 8 3 5 1,914 2 39 1,719 64 12 78 41

Computer and information services 168 147 20 4,585 313 1,559 174 2,423 36 81 3,811

Royalties and licence fees 812 799 13 2,635 379 1,285 10 884 36 41 1,685

Non-financial commissions 104 97 7 738 569 14 86 59 6 3 311

Equipment rentals 15 2 13 305 190 0 0 4 0 111 0

Management services 1,110 892 218 4,018 385 309 647 1,860 468 350 863

Advertising and related services 40 40 0 462 53 185 41 168 1 13 34

Research and development 1,030 1,011 19 1,778 539 216 11 978 0 35 1,159

Architectural, engineering, and other technical services 1,265 890 375 3,418 160 5 21 3,001 40 192 304

Miscellaneous services to business 1,078 1,001 78 2,144 170 470 1 339 33 1,131 413

Audio-visual services 260 260 0 2,034 32 1,977 0 18 0 6 21

Personal, cultural and recreational services 0 0 0 229 0 0 0 0 0 229 0

5

2005 Based on North American Industrial Classification System

Commercial services by category and by industry

Total, goods

producing

industries

Manufacturing [31-33]

Other goods

producing

industries

Total, service

s produc

ing industr

ies

Trade and

transportation

Information,

culture and arts

Finance and

insurance [52]

Professional,

scientific &

technical

services [54]

Management of compan

ies & enterprises [55]

Other service

s produci

ng industri

es

Memorandum

item: Information & communicatio

n technol

ogy

DEBITS (in millions of C$)  

Total, commercial services 11,736 10,557 1,179 26,767 4,455 5,995 8,658 4,622 655 2,382 6,207

Communications services 14 13 1 2,420 823 1,414 1 119 41 23 1,515

Construction services 141 85 56 65 32 0 0 4 28 1 1

Insurance services 85 73 12 5,474 17 3 5,149 4 257 45 5

Other financial services 57 46 12 2,795 5 15 2,568 94 44 70 16

Computer and information services 226 185 41 1,942 356 460 126 934 12 54 1,135

Royalties and licence fees 3,979 3,833 145 4,338 1,516 1,437 23 717 37 608 1,526

Non-financial commissions 285 282 3 340 267 16 23 25 8 2 39

Equipment rentals 73 39 34 993 633 5 4 38 2 310 1

Management services 2,527 2,161 366 2,710 537 303 631 870 51 319 1,302

Advertising and related services 118 116 2 320 24 82 89 46 2 78 21

Research and development 893 858 35 438 49 53 1 256 52 26 387

Architectural, engineering, and other technical services 831 568 264 1,420 40 15 8 1,252 87 19 72

Miscellaneous services to business 2,500 2,293 207 1,219 142 207 35 262 6 566 113

Audio-visual services 6 5 1 2,086 15 1,984 0 2 28 56 74

Personal, cultural and recreational services 0 0 0 206 0 0 0 0 0 206 0

6

Large concentration of services in few industries Limited number of published industrial categories Statistics compiled at NAICS-6 digits level

• Published at NAICS-2 digits or even less

Frequent requests from users as lack of details for published statistics Increasing interest in these statistics for issues such as outsourcing

Description of Canadian statisticsDescription of Canadian statistics

7

Strength of using diversified sources vs. weakness of using different sources Current industrial classification extracted from different sources but not consistently updated Sources used:

• Main survey on international trade in services

• Large number of specialized surveys covering specific industries

• Administrative data on trade between affiliates

Sources cover diverse parts of the units (enterprise, establishment, etc.) No link with central Business Register (BR)

• BOP had its own frame

Issues with the current methodologyIssues with the current methodology

8

Possible duplication Not an accurate portray of the units (could still estimate for an inactive unit) No consistent treatment between units Interrogation about data quality = limitation of published categories Difficulty to link data with other economic statistics

Issues with the current methodologyIssues with the current methodology

9

Global project to improve trade in (commercial) services program Objectives: Improve coverage, methodology, questionnaires, compatibility with other statistics, etc. Involve a link with the Business Register

• Complete structure of the unit will be available in the new BR

Industrial classification extracted from Business Register

• Industrial classification based on the dominant activity

Industrial classification (NAICS) will be an important indicator for the stratification of the services sample

Redesign of the trade in services programRedesign of the trade in services program

10

First step [fall 2007]: Link BOP units with Business Register Find the appropriate top enterprise for each unit Eliminate non-matches Able to provide inputs to Business Register Change in the collection process: Is the top enterprise always the best to provide statistics?

Redesign of the trade in services programRedesign of the trade in services program

11

Second step [winter 2008]: Use Business Register to determine the target population and the sample Establish criteria of selection based on known trade in services activities, industrial classification, and revenues Over sampling certain industries

Redesign of the trade in services programRedesign of the trade in services program

12

Third step [2009?]: Increase the level of published details for trade by industry More confident in statistics due to better and more consistent methodology Probable break in time series Link micro data on trade in services with other economic micro data (employment, investments, etc.) Other projects: Export and import registers Reactive statistics on country of control

Redesign of the trade in services programRedesign of the trade in services program

13

Thank you for your attention

Questions / Comments ?