TABLE OF CONTENTS
Prefatory Note
Introduction - Marshall Reinsdorf, Matthew Slaughter
DOI: 10.7208/chicago/9780226709604.003.0001
[services, intangibles, multinational corporations, affiliates]
This chapter discusses the contents of this volume which is about the measures of intangibles and trade in services. The chapters in this volume are revised versions of the papers presented at the Conference on Research in Income and Wealth entitled “International Service Flows” held in Bethesda, Maryland on April 28–29, 2006. The specific topics discussed in this volume include the challenges in the measurement of trade in services, the production of services for export by affiliates of multinational corporations (MNCs), and drivers of the patterns of trade in services. (pages 1 - 24)
This chapter is available at:
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I. Challenges in Measuring Trade in Services
Measuring International Trade in Services - Robert E. Lipsey
DOI: 10.7208/chicago/9780226709604.003.0002
[trade, exports, imports, service exports, service production, intangible assets, financial assets]
This chapter discusses issues concerning the measurement of trade in services. It analyzes the size of exports and imports of service, and their composition, by type of service. This chapter also evaluates how fast the growth in service exports and imports has been, relative to trade in goods and to the production of services. It also suggests that the problems in the measurement of service exports and imports are caused by the ambiguities in defining the location of service production, particularly service production based on intangible and financial assets. (pages 27 - 70)
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Improved Measures of U.S. International Services - Maria Borga
DOI: 10.7208/chicago/9780226709604.003.0003
[services, Bureau of Economic Analysis, international sales, purchases, insurance services, wholesale trade services, retail trade services, financial services, travel estimates]
This chapter focuses on the data on trade in services in the U.S. published by the Bureau of Economic Analysis (BEA) and on efforts to improve that information. It provides an update on the BEA's efforts to improve its data on and measures of U.S. international sales and purchases of services, particularly insurance services, wholesale and retail trade services, and financial services. This chapter highlights the need for the BEA to provide greater detail in affiliate trade in services and to improve the quality of travel estimates. (pages 75 - 108)
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II. R&D and Intellectual Property
The Effect of Taxes on Royalties and the Migration of Intangible Assets Abroad - John Mutti, Harry Grubert
DOI: 10.7208/chicago/9780226709604.003.0004
[taxes, royalties, intangible assets, multinational corporations, tax regulations, tax-savings strategies, cost-sharing agreements]
This chapter investigates the impact of taxes on royalties and the transfer of the intangible assets of U.S.-based multinational corporations (MNCs) abroad. It describes the strategies of MNCs for relocating their intangible assets abroad and demonstrates how firms have interpreted two important tax regulations to create these new strategies. This chapter also discusses some successful tax-saving strategies of MNCs and explains the concepts of hybrid structures and cost-sharing agreements. (pages 111 - 138)
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Measuring Payments for the Supply and Use of Intellectual Property - Carol A. Robbins
DOI: 10.7208/chicago/9780226709604.003.0005
[intellectual property, corporate income, royalties, licensing fees, business affiliates]
This chapter provides the first detailed estimation of U.S. corporate income from the use of intellectual property, commonly called royalties and licensing fees. The findings reveal that transactions in royalties and license fees are predominantly conducted through business affiliates and that international transactions in royalties and license fees in 2002 account for the bulk of U.S. receipts from unaffiliated parties. This chapter argues that the Statistics of Income (SOI) data are more complete than the Census data as a basis for estimation of the industries' supply and use of rights to benefit from intellectual property. (pages 139 - 171)
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R&D Exports and Imports - Francisco Moris
DOI: 10.7208/chicago/9780226709604.003.0006
[R&D accounting, statistics and research, trade-expenditure ratio, Bureau of Economic Analysis, international transactions, accounting concepts, National Science Foundation, service trade data]
This chapter discusses issues of globalization statistics and research and development (R&D) accounting as defined in several international statistical manuals and presents U.S. data on R&D-related trade and trade-expenditure ratios. It introduces data on affiliated international trade in R&D-related services from Bureau of Economic Analysis (BEA) surveys on international transactions. This chapter also compares the R&D services trade data with well-known statistics on industrial R&D from the National Science Foundation (NSF) in terms of their underlying accounting concepts. (pages 175 - 202)
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International Trade in Motion Picture Services - Gordon H. Hanson, Chong Xiang
DOI: 10.7208/chicago/9780226709604.003.0007
[motion picture exports, gravity model, services, motion picture imports, global economy]
This chapter analyzes the data on U.S. trade in motion pictures and examines the determinants of U.S. motion picture exports using a modified version of the gravity model. Under this model, in which a country's imports of U.S. motion picture services relative to its expenditure on domestically produced motion picture services depends on the country's size relative to the United States, proximity to the United States in terms of geography and culture and other trade costs are considered. The analysis reveals that the poor quality of published data on trade in services has hampered research on the motion picture industry's role and contributions to the global economy. (pages 203 - 222)
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III. Offshoring of Services
Does Service Offshoring Lead to Job Losses? - Mary Amiti, Shang-Jin Wei
DOI: 10.7208/chicago/9780226709604.003.0008
[service offshoring, international outsourcing, job losses, manufacturing industries, employment, data collection]
This chapter investigates whether service offshoring or international outsourcing of services lead to job losses, using evidence from the U.S. It evaluates the employment effect of service offshoring for the United States during the period 1992 to 2000 and the results shows that service offshoring has no significant effect on employment when manufacturing industries are aggregated to ninety-six industries. This chapter suggests a number of possible avenues for future research, including improvements in data collection at the firm level and extending the measure of service offshoring beyond the year 2000. (pages 227 - 243)
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Outsourcing and Imported Services in BEA's Industry Accounts - Robert E. Yuskavage, Erich H. Strassner, Gabriel W. Medeiros
DOI: 10.7208/chicago/9780226709604.003.0009
[employment effects, offshore outsourcing, input-output account, Bureau of Economic Analysis, industry accounts, imported services, gross domestic product]
This chapter examines the employment effects of offshore outsourcing in the U.S. using input-output accounts data. It explains the treatment of imported services in the Bureau of Economic Analysis's (BEA) international, national, and industry accounts and describes the BEA's new framework for measuring purchased services in the industry accounts, including the role of the integrated industry accounts. This chapter highlights the need to develop a better understanding of how imported services affect industry output, employment, and contributions to gross domestic product. (pages 247 - 283)
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We Can Work It Out - Desirée van Welsum, Xavier Reif
DOI: 10.7208/chicago/9780226709604.003.0010
[offshoring, ICT-enabled services, OECD countries, employment, service activities, globalization]
This chapter examines the share of employment potentially affected by information and communications technology (ICT)-enabled offshoring of services in order to determine the potential effect of offshore outsourcing on labor markets in the U.S. and other Organization for Economic Cooperation and Development (OECD) countries. The analysis uses a combination of trade and employment data and simple descriptive regressions for a panel of OECD economies between 1996 and 2003. This chapter identifies the association of evolution over time with the share of these potentially offshorable occupations in total employment and discusses a number of different measures of the extent to which services activities have become globalized. (pages 289 - 325)
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IV. Topics in the Measurement of Price and Productivity
The Contribution of Multinational Corporations to U.S. Productivity Growth, 1977–2000 - Carol Corrado, Paul Lengermann, Larry Slifman
DOI: 10.7208/chicago/9780226709604.003.0011
[multinational corporations, aggregate productivity, productivity improvement, corporate gross product, private businesses, labor productivity]
This chapter examines the contribution of multinational corporations (MNC) to the aggregate productivity record of the U.S. for the period from 1977 to 2000. The findings indicate that MNC parents or affiliates based in the U.S. play a major role in productivity improvement. It explains that while the MNC sector only accounts for about 25 percent of the gross product of all nonfarm private businesses and about 40 percent of nonfinancial corporate gross product, it accounted for more than half of the increase for all nonfarm private businesses and all of the increase in the labor productivity of nonfinancial corporations in the late 1990s. (pages 331 - 360)
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Contributors
Author Index
Subject Index
