1. AGNA Meeting 20-22 April 2016, Addis Ababa Expanding the coverage of the Trade in Value Added database for Africa Oscar.lemmers@oecd.org

2. Challenges of global production What is TiVA? What does TiVA tell us? How is TiVA created? Formal OECD/ECA cooperation Overview 2

3. 3 Statistical Challenges of global production What does this mean? Gross exports ≠ value-added Bilateral trade balances can differ significantly – who really trades with who? Imports for exports Of which –75$ profit to US (Apple) –73$ whls/retail US (Apple) –75$ to Japan (Toshiba) –60$ 400 parts from Asia –15$ 16 parts from the US – 2$ assembly by China The Apple iPod = 299$ of Chinese ‘exports’ to US http://blogs.computerworld.com/node/5724

4. What is TiVA? An approach to measuring the value that is added by each country in the value-chain 4 TiVA: Trade in Value Added

5. What does TiVA tell us? 5

6. 6

7. Who trades with who? Japan’s trade balances 7 Remember the iPod?

8. The current TiVA database 61 economies + RoW, 1995-2011, 34 industries, http://oe.cd/icio-fr or http://oe.cd/tivahttp://oe.cd/icio-frhttp://oe.cd/tiva 8 OECDAll OECD 34 countries BRIICS Brazil, China, India, Indonesia, Russian Federation, South Africa Other EU28 Bulgaria, Croatia, Cyprus, Latvia, Lithuania, Malta, Romania Other G20Argentina, Saudi Arabia Other South Eastern Asia Brunei Darussalam, Cambodia, Malaysia, Philippines, Singapore, Thailand, Viet Nam Other Eastern AsiaChinese Taipei, Hong Kong China Other Columbia, Costa Rica, Tunisia, Rest of the World But expansion is needed particularly for Africa

9. TiVA industries IO Industries ISIC Rev.3Industry 101t05 Agriculture, hunting, forestry and fishing 210t14 Mining and quarrying 315t16 Food products, beverages and tobacco 417t19 Textiles, textile products, leather and footwear 520 Wood and products of wood and cork 621t22 Pulp, paper, paper products, printing and publishing 723 Coke, refined petroleum products and nuclear fuel 824 Chemicals and chemical products 925 Rubber and plastics products 1026 Other non-metallic mineral products 1127 Basic metals 1228 Fabricated metal products except machinery and equipment 1329 Machinery and equipment n.e.c 1430,32,33 Computer, electronic and optical products 1531 Electrical machinery and apparatus n.e.c 1634 Motor vehicles, trailers and semi-trailers 1735 Other transport equipment 1836t37 Manufacturing n.e.c; recycling 1940t41 Electricity, gas and water supply 2045 Construction 2150t52 Wholesale and retail trade; repairs 2255 Hotels and restaurants 2360t63 Transport and storage 2464 Post and telecommunications 2565t67 Finance and insurance 2670 Real estate activities 2771 Renting of machinery and equipment 2872 Computer and related activities 2973, 74 Other Business Activities (incl. R&D) 3075 Public admin. and defence; compulsory social security 3180 Education 3285 Health and social work 3390t93 Other community, social and personal services 3495 Private households with employed persons 9

10. How is TiVA created? 10 Connecting national SUTs into national Input Output tables into an Inter Country Input Output (ICIO) table

11. National Supply Use Tables National building blocks for TiVA 11

12. OECD working with global partners to expand TiVA coverage and provide permanent public-good for policy makers and statisticians Proposal for formal OECD/ECA cooperation: – Phase I – countries are asked to send all current SUTs or IOTs (and structural business statistics) to ECA for onward transmission to OECD – Phase II - OECD to harmonise national data and provide feedback/guidance to countries – Phase III - National Action plans (and leveraging on OECD partnerships, submitted to donors for funding) to develop capacity – Phase IV – integration of national tables into OECD TiVA, and on- going permanent cooperation International cooperation 12

13. OECD already engaging with countries to create SUTs best adapted to national (data) circumstances, with a view to delivering best quality estimates of coherent GDP. – Capitalising on all available data sources, including in particular micro-data linking. One important dimension of this strategy for Africa is likely to be on the ‘informal’ economy, where the OECD has long- standing expertise. Creating spill-overs and synergies 13

14. Thank you for your attention, merci! 14

15. Pourqoi est-ce important pour l’Afrique Pays à faible revenu exports et imports, Mld USD Peu d'intégration via les importations intermédiaires et des exportations relativement bas de gamme, 2000-2013 15