Outsourcing and Imported Inputs in the U.S. Economy Insights from Integrated Economic Accounts R.
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Transcript Outsourcing and Imported Inputs in the U.S. Economy Insights from Integrated Economic Accounts R.
Outsourcing and Imported
Inputs in the U.S. Economy
Insights from Integrated
Economic Accounts
R. Yuskavage, E. Strassner, and G. Medeiros
World Congress on National Accounts and
Economic Performance Measures for Nations
May 15, 2008
Motivation
Size and Growth of Outsourcing
Domestic outsourcing
Imported inputs
Annual Industry Accounts
Recent enhancements
Analytical framework
www.bea.gov
2
Key Findings
Domestic Outsourcing
One-fourth of intermediate inputs
Nearly one-half of purchased services
Growing fast in real terms
Imported Inputs
More than half of all U.S. imports
Nearly 11 percent of intermediate inputs
Substitution for domestic materials
www.bea.gov
3
Definition of Outsourcing
No consensus in economics profession
International guidelines largely silent
NAPA study identified two types
Business process
Business relocation
Establishment-based production focus
www.bea.gov
4
Composition of Outsourcing
2006
Transportation & storage
services
6%
11%
Repair & maintenance
services
31%
5%
Information services
Professional, scientific, &
technical services
47%
www.bea.gov
Administrative & support
services
5
Outsourcing in Economic Statistics
Company vs. Establishment
Industry Classification
Advantages of NAICS
Treatment of auxiliaries
Economic Census Source Data
Input-Output Definitions & Conventions
www.bea.gov
6
Input Category Disaggregation
E
(pub)
Dom
(unpub)
Imp
(unpub)
Dom
(unpub)
Disaggregation performed for
each of 65 industries for each
year 1997-2006
www.bea.gov
M
S
(pub)
(pub)
Imp
(unpub)
Dom
(unpub)
Imp
(unpub)
Each category includes nominal
values, price indexes, and
quantity indexes
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Purchased Services Disaggregation
S
(pub)
Aggregation of 30
4-digit commodities
Utilities
Outsourcing
(unpub)
Other
Services
Telecomm
Financial
Rental &
Leasing
Dom
(unpub)
www.bea.gov
Imp
(unpub)
8
Purchased Services Shares
Input Category Shares of Nominal Intermediate Inputs
All Private Industries
60
50
Percent
40
30
20
10
0
1997
1998
1999
2000
Outsourcing
www.bea.gov
2001
2002
Year
2003
2004
2005
2006
Other Purchased Services
9
Energy and Materials Shares
Input Category Shares of Nominal Intermediate Inputs
All Private Industries
50
Percent
40
30
20
10
0
1997
1998
1999
2000
2001 2002
Year
Energy
www.bea.gov
2003
2004
2005
2006
Materials
10
Import Share of Intermediate Inputs
Import Shares of Nominal Intermediate Inputs
All Private Industries
15
Percent
10
5
0
1997
1998
1999
2000
2001 2002
Year
2003
2004
2005
2006
Total Intermediate Inputs
www.bea.gov
11
Import Shares by Input Category
Import Shares of Nominal Intermediate Inputs
All Private Industries
25
Percent
20
15
10
5
0
1997
1998
1999
2000
2001 2002
Year
Purchased Services
www.bea.gov
2003
Energy
2004
2005
2006
Materials
12
Input Intensity: Private Industries
Real Inputs per Unit of Real Gross Output
All Private Industries
Index (2000 = 1.000)
1.100
1.050
1.000
0.950
0.900
0.850
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Year
Purchased Services
www.bea.gov
Materials
Energy
Labor
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Import Intensity of Intermediates
Imported Real Inputs per Unit of Domestic Real Input
All Private Industries
Index (2000 = 1.000)
1.200
1.100
1.000
0.900
0.800
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Year
Total Intermediate
www.bea.gov
Materials
14
Summary
Domestic outsourcing is large
Imported inputs are growing fast
Data are gradually improving
Improvements are still needed
www.bea.gov
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Recommendations
Better Data
Fewer assumptions
Greater reliability
More Guidance
Less uncertainty
Better research
www.bea.gov
16
Better Data
Imports by Industry
Expanded/Improved Price Indexes
Domestic services
Imported goods and services
Annual Inputs by Industry
Interagency Integration
Capital services
Occupation by industry
www.bea.gov
17
More Guidance
Definition of Outsourcing
Unit of Analysis
Distinguishing Outsourcing from
Services growth
Technological change
Special Issues
Leasing of assets and employees
Capitalized services
www.bea.gov
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