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
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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
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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
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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
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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
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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)
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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
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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
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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
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Summary
 Domestic outsourcing is large
 Imported inputs are growing fast
 Data are gradually improving
 Improvements are still needed
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Recommendations
 Better Data
 Fewer assumptions
 Greater reliability
 More Guidance
 Less uncertainty
 Better research
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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
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More Guidance
 Definition of Outsourcing
 Unit of Analysis
 Distinguishing Outsourcing from
 Services growth
 Technological change
 Special Issues
 Leasing of assets and employees
 Capitalized services
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