Measuring Globalisation: OECD Economic Globalisation Indicators 2010

Foreword......Page 5
Table of Contents......Page 7
Executive Summary......Page 9
Part I. Globalisation and the Crisis......Page 15
A. Globalisation and the Financial Crisis......Page 17
A.1. The world economy prior to the crisis......Page 18
Figure A.1.3. Inflation in the main OECD areas, 2007-2011......Page 19
Securitisation......Page 20
Figure A.2.4. Debt securitisation in the United States and Europe......Page 21
Stock markets......Page 22
Figure A.3.2. Market capitalisation of the world’s leading stock exchanges......Page 23
Figure A.4.1. Quarterly growth rate of GDP, 2007 to 2009......Page 24
Figure A.4.2. Real GDP growth......Page 25
Figure A.5.1. Trends in world trade volume......Page 26
Figure A.5.2. Trends in monthly trade balance of goods since January 2007......Page 27
Synchronisation of trade flows......Page 28
Figure A.6.2. Magnitudes of decline in monthly import growth rate (year-on-year)......Page 29
Figure A.7.1. Total OECD outflows and inflows of FDI, Q1 2007 to Q3 2009......Page 30
Figure A.7.2. Inward FDI flows by development level......Page 31
A.8. Impact of the crisis on mergers and acquisitions......Page 32
Figure A.8.3. International M&A activity by firms based in six major emerging economies1......Page 33
A.9. Multinational enterprises and the crisis......Page 34
Figure A.9.2. Responsiveness of foreign affiliates’ manufacturing employment to business cycles......Page 35
A.10. Global value chains and the crisis......Page 36
Figure A.10.3. Total value of French exports and total number of French exporters, January 2000 to April 2009......Page 37
Part II. Globalisation of Trade and Investment......Page 39
B. Trends in International Trade and Investment......Page 41
Main components of international trade and investment......Page 42
Figure B.1.3. Average of the main components of the financial account as a percentage of GDP, OECD......Page 43
International trade in the context of the balance of payments......Page 44
Figure B.2.4. Imports of goods, 2005-08......Page 45
B.3. Trade of services......Page 46
Figure B.3.4. Imports of services, 2005-08......Page 47
Content of portfolio investment......Page 48
Figure B.4.4. Average liabilities, 2005-08......Page 49
Foreign direct investment flows......Page 50
Figure B.5.4. Average liabilities, 2005-08......Page 51
Other investment flows......Page 52
Figure B.6.4. Average liabilities, 2005-08......Page 53
Investment income......Page 54
Figure B.7.4. Average debit flows, 2005-08......Page 55
For further reading......Page 56
Figure B.8.4. Financial account balance as a percentage of GDP, 2008......Page 57
C. International Trade of Goods and Services......Page 59
Average trade-to-GDP ratio......Page 60
Figure C.1.2. Trade in goods and services......Page 61
Trade balance, export-import ratio and international competitiveness......Page 62
Figure C.2.3. Trade balance in services as a percentage of GDP, 2000 and 2007......Page 63
C.3. Merchandise trade with the rest of the world......Page 64
Figure C.3.4. Japan merchandise trade with the rest of the world......Page 65
C.4. Merchandise trade with partners China and Hong Kong (China)......Page 66
Figure C.4.4. Japan merchandise trade with China and Hong Kong (China)......Page 67
C.5. World export market shares......Page 68
Figure C.5.3. World export market shares in services of OECD countries......Page 69
Export market shares and competitiveness......Page 70
Figure C.6.2. Top three OECD exporters of goods, by category of commodities, 2007......Page 71
Geographical distribution of export shares......Page 72
Figure C.7.3. Highest shares of goods exported to Japan by OECD+, 2000 and 2007......Page 73
C.8. Geographical distribution of shares of export of goods (cont.)......Page 74
Figure C.8.3. Highest shares of goods exported to Asia by OECD+, 2000 and 2007......Page 75
C.9. Geographical distribution of shares of exports in services......Page 76
Figure C.9.6. Shares of services exported to Asia, 2000 and 2006......Page 77
The rate of import penetration......Page 78
Figure C.10.3. Import penetration of services, 2000 and 2007......Page 79
Trade elasticity......Page 80
Figure C.11.4. Export elasticity of income, 1970-2006......Page 81
Figure C.12.1. Preferential trade agreements notified to the GATT/WTO and in force, by date of entry into force, 1948-2008......Page 82
Figure C.12.3. Intra-regional trade shares, by region......Page 83
D. Foreign Direct Investment......Page 85
Direct investment, direct investment enterprise and direct investor......Page 86
Figure D.1.3. FDI inflows to OECD countries as a percentage of GDP, average 2005-081......Page 87
Foreign direct investment transactions......Page 88
Figure D.2.4. FDI inflows by type of financing, average 2005-08......Page 89
Foreign direct investment positions (stocks)......Page 90
Figure D.3.3. Inward FDI position of OECD countries as a percentage of GDP, 2007......Page 91
Geographic allocation......Page 92
Figure D.4.3. OECD outward investment to non-OECD countries as a percentage of total outward FDI stocks, 2007......Page 93
Industrial classifications......Page 94
Figure D.5.4. Share of the manufacturing sector in the total inward FDI positions of OECD countries, 2007......Page 95
Coverage of service sectors......Page 96
Figure D.6.4. Share of the service sector in the total inward FDI positions of OECD countries......Page 97
Direct investment income......Page 98
Figure D.7.4. Income of OECD resident direct investment enterprises as a percentage of GDP, average 2004-07......Page 99
Rate of return on direct investment......Page 100
Figure D.8.3. Rate of return on inward direct investment in OECD countries, 2007......Page 101
Dividends distributed to direct investors......Page 102
Figure D.9.4. Dividends paid to foreign investors as a percentage of inward FDI position, average 2004-07......Page 103
Cross-border mergers and acquisitions......Page 104
Figure D.10.4. Inward cross-border mergers and acquisitions by OECD countries, average 2005-08......Page 105
E. Portfolio Investment......Page 107
Cross-border portfolio investment......Page 108
Figure E.1.4. OECD portfolio assets as a percentage of GDP, 2007......Page 109
Portfolio investment: types of securities......Page 110
Figure E.2.8. OECD debt securities holdings by currency of denomination, average 2003-06......Page 111
Identifying the issuer of portfolio investment......Page 112
Figure E.3.4. OECD holdings by issuer – Non-OECD countries, average 2004-07......Page 113
Part III. Globalisation of Technology and Knowledge......Page 115
F. Internationalisation of Science and Technology......Page 117
Measuring R&D in non-OECD economies......Page 118
Figure F.1.2. Business enterprise R&D (BERD) in OECD and non-OECD economies......Page 119
Measuring flows of R&D funds......Page 120
Figure F.2.3. Funding from foreign enterprises, 2007......Page 121
R&D data by enterprise group at the world level......Page 122
Figure F.3.1. Comparison between industrial R&D expenditures (BERD) of OECD countries and those of the eight largest multinational groups, 2008......Page 123
Triadic patent families......Page 124
Figure F.4.2. Triadic patents, families, per million population, 2007......Page 125
Cross-border ownership of inventions......Page 126
Figure F.5.3. Firms in Europe with foreign collaboration on innovation, 2004-06......Page 127
Measures of co-authorship......Page 128
Figure F.6.3. Share of internationally co-authored scientific articles, 2007......Page 129
Technology balance of payments......Page 130
Figure F.7.4. Technology balance of payments (receipts – payments) as a percentage of GDP, 2008......Page 131
Technology balance of payments: limitations......Page 132
Figure F.8.1. Technological payments and business enterprise R&D expenditure, 2008......Page 133
Trade by technology intensity......Page 134
Figure F.9.3. Share of high- and medium-high-technology in manufacturing exports, 2007......Page 135
G. Internationalisation of Highly Skilled Human Capital......Page 137
Foreign and international students......Page 138
Figure G.1.3. Distribution of foreign students in tertiary education, by country of destination, 2007......Page 139
Foreign and international doctoral students......Page 140
Figure G.2.2. Number of international doctoral students, 2007......Page 141
National Science Foundation (NSF) data on US doctorates and postdoctorates......Page 142
Figure G.3.3. Foreign S&E doctorate recipients who intend to stay in the United States, 2002-05......Page 143
Open Doors data......Page 144
Figure G.4.3. Growth of foreign scholars in the United States, by gender and activity, 1993/94-2007/08......Page 145
H. Internationalisation of environmental technology......Page 147
Figure H.1.1. Environmental innovation in enhanced engagement and accession countries......Page 148
Figure H.1.3. Proportion of patenting in general “environmental” technologies in overall patenting......Page 149
Measuring “environmental” technology transfer......Page 150
Figure H.2.3. Relation between absorptive capacity and wind power technology transfers, 1998-2007......Page 151
OECD classification of environmental goods......Page 152
Figure H.3.3. Top four exporters of environmental goods, percentage share of main destinations, 2006......Page 153
Part IV. Multinational Enterprises and Globalisation......Page 155
I. The Importance of Multinational Enterprises......Page 157
Share of foreign affiliates in turnover......Page 158
Figure I.1.2. Share of foreign-controlled affiliates in services employment, turnover and value added, 2006......Page 159
I.2. Inward activity: employment growth of foreign affiliates in manufacturing......Page 160
Figure I.2.2. Geographic origin of employment by foreign-controlled affiliates in the manufacturing sector, 1997 and 2007......Page 161
Number of foreign affiliate employees in the services sector......Page 162
Figure I.3.2. Geographic origin of employment by foreign-controlled affiliates in the services sector......Page 163
I.4. Inward activity: share of turnover of foreign affiliates in selected manufacturing industries......Page 164
Figure I.4.3. Pharmaceuticals (ISIC 2423), 2007......Page 165
I.5. Inward activity: share of turnover of foreign affiliates in selected service industries......Page 166
Figure I.5.3. Business activities (ISIC 72 to 74), 2006......Page 167
Parent company of a compiling country......Page 168
Figure I.6.2. Parent companies’ share of services turnover and employment, 2006......Page 169
The activities of multinationals abroad......Page 170
Figure I.7.2. Share of affiliates abroad in the turnover and employment of parent companies located in the domestic economy, in the services sector, 2006......Page 171
J. The Characteristics of Multinational Enterprises......Page 173
Measuring the average size of foreign-controlled affiliates......Page 174
Figure J.1.2. Number of employees by enterprise of foreign affiliates and national firms in services, 2006......Page 175
Measuring apparent labour productivity......Page 176
Figure J.2.2. Value added per employee of foreign affiliates and national firms in services, 2006......Page 177
Employee compensation......Page 178
Figure J.3.2. Compensation per employee of foreign affiliates and national firms in services, 2006......Page 179
Gross operating surplus......Page 180
Figure J.4.1. Gross operating surplus as a share of turnover of foreign affiliates and national firms in manufacturing, 2007......Page 181
J.5. Export and import propensity of foreign affiliates......Page 182
Figure J.5.2. Export and import propensity of foreign affiliates in services, 2006......Page 183
Measuring intra-firm trade......Page 184
Figure J.6.2. Share of intra-firm imports in total imports of affiliates under foreign control, 1997-2007......Page 185
J.7. Intra-firm trade and impact on the trade balance: United States manufacturing sector......Page 186
Figure J.7.3. Intra-firm imports of goods to US parent companies from affiliates abroad by partner economy, 2007......Page 187
J.8. Intra-firm trade and impact on the trade balance: Japan manufacturing sector......Page 188
Figure J.8.5. Intra-firm imports of affiliates under foreign control in Japan by country of origin in the manufacturing sector, 2007......Page 189
K. Multinational Enterprises and R&D......Page 191
Defining R&D expenditure......Page 192
Figure K.1.2. Growth of R&D expenditure of affiliates under foreign control and firms under domestic control Selected OECD countries between 1997 and 2007......Page 193
Measuring the R&D intensity of foreign affiliates......Page 194
Figure K.2.2. R&D intensities of foreign affiliates and national firms in the business sector, 2007......Page 195
Number of researchers......Page 196
Figure K.3.2. Researchers per thousand employees in foreign affiliates and national firms in the manufacturing sector, 2007......Page 197
Measuring the internationalisation of a sector\'s R&D......Page 198
Figure K.4.2. Share of R&D under foreign control by main manufacturing sectors, total OECD......Page 199
K.5. Inward activity: sectoral dimension of R&D expenditure of foreign affiliates (cont.)......Page 200
Figure K.5.3. ICT sector, 2007......Page 201
Figure K.6.1. Geographic origin of R&D expenditure by foreign-controlled affiliates, 1997 and 2007......Page 202
Figure K.6.2. R&D expenditures of affiliates under foreign control by main industrial sectors, 2007......Page 203
Defining the R&D expenditure of offshore affiliates of parent companies in a compiling country......Page 204
Table K.7.1. R&D expenditure of affiliates abroad by country of destination, 2007......Page 205
Part V. Global Value Chains as a New Form of Globalisation......Page 207
L. Global Value Chains......Page 209
Exports, value added and production: production depth and export share of production......Page 210
Figure L.1.2. Exports of goods as a percentage of manufacturing production, 1990 and 2008......Page 211
The measurement of intra-industry trade......Page 212
Figure L.2.2. Index of intra-industry trade in manufactures, average annual change 2001-08......Page 213
Trade in intermediate goods......Page 214
Figure L.3.2. Imported intermediates/domestic intermediates, by country......Page 215
L.4. Trade in intermediate goods: geographical distribution......Page 216
Figure L.4.2. Intra- and inter-regional imports of intermediate services, by region......Page 217
Trade in intermediate goods: distribution by producer and user industry......Page 218
Figure L.5.2. Share of industries in total imports of intermediates, using industry, 2005......Page 219
Index of offshoring/outsourcing abroad......Page 220
Figure L.6.2. Change in offshoring, by country, 1995-2005......Page 221
Index of offshoring/outsourcing abroad (2)......Page 222
Figure L.7.2. Offshoring of services, by country......Page 223
Index of offshoring/outsourcing abroad (3)......Page 224
Figure L.8.3. Offshoring, ICT manufacturing industry, by country......Page 225
Import content of exports......Page 226
Figure L.9.2. Import content of exports, by industry......Page 227
Import content of exports: shortcomings......Page 228
Figure L.10.2. Import content of exports with partner countries, other countries......Page 229
Annex. Main OECD Databases Used......Page 231