Institution

UNECE

Year

2015

Level

Intermediate

Abstract

Global production has evolved and now encompasses a broad range of business arrangements and organizational forms. Today, multinational enterprises (MNE) account for a large share of international trade between countries. National statistical institutes (NSI) need to keep track of the changing forms of global production and their effects on international trade relationships. It is important to identify best practices developed by countries and agree internationally on the practical guidelines needed to foster international comparability. In recent years, significant steps have been taken to improve international accounting standards of national accounts with respect to recording transactions of enterprises participating in global production. These changes highlight the fact that capturing the activities of global production is a challenging aspect of macroeconomic statistics. The transfer of ownership principle brings to the surface measurement issues that were previously concealed when compiling accounts according to the old guidelines. The new standards are brought in line with several aspects of globalization but also bear many measurement challenges. These challenges triggered new conceptual and measurement issues, which are addressed in this Guide to Measuring Global Production. Its purpose is to support the implementation of the updated international standards in respect of the treatment of global production and thereby enhance international comparability.