63
delivered through the commercial presence mode of
supply and could most readily be compared with data on
services delivered through trade between residents and
non-residents. However, some FATS variables, such as
value added and employment (discussed below), do not
lend themselves to a product classification. Also, for
some countries, FATS statistics may be developed as a
subset of domestic enterprise or other statistics that are
classified only on an activity basis.
On this basis, all of
the data for a given enterprise are classified in the single
activity––often termed the “primary” activity––that,
based on some key variable (such as employment or
sales), is the largest. Finally, for some purposes, the
data may need to be viewed in conjunction with data on
stocks and flows of foreign direct investment, which
normally would be classified by activity but not by
product.
4.40. Taking
these factors into account, an activity
basis is recommended as the first priority for FATS
statistics. However, as a longer-term goal, countries are
encouraged to work toward providing product detail for
the items that can be classified on this basis. Countries
that are building on existing data systems that already
include product detail will probably wish to use this
detail from the outset in their
tabulation and presentation
of FATS statistics, because it could help them in
monitoring commitments under GATS that are specified
in terms of services products. Similarly, countries that
are building their FATS data systems from the ground
up should consider the feasibility of providing for a
product dimension.
(a) By activity
4.41. The present
Manual recommends that, for
reporting to international organizations, FATS variables
be classified
by activity according to ISIC, Rev.3 and
grouped according to the ISIC Categories for Foreign
Affiliates (ICFA), which have been derived from ISIC.
These categories, shown in table 3, cover all activities,
but with more detail provided for services than for
goods.
67
This all-inclusive basis of presentation allows
activities of services enterprises to be viewed in the
context of the activities of all enterprises. In addition, it
provides a framework for displaying services produced
67
The OECD manual of economic
globalisation indicators is
also expected to recommend use of an ISIC-based
classification of measures of foreign-affiliate operations and
performance, but with categories representing goods and
services in more even proportions.
as a secondary activity by enterprises classified as goods
producers. Finally, this all-inclusive approach has been
adopted by the countries and international organizations
that are actively developing FATS statistics.
68
4.42. Primarily because the activities carried out by a
given firm are usually not limited to its activity of
classification, the data
recorded against any given
activity must be interpreted as an indication of total
activity of firms for which the given activity is the most
important, or primary, activity, rather than as a precise
measure of the activity itself.
69
For the same reason, as
well as because of differences in the classifications
themselves, the extent to which data on resident/non-
resident trade classified according to EBOPS can be
aligned with data on FATS variables classified
according to ICFA is inherently limited. Nonetheless, a
correspondence between the
two bases of classification
may be useful for some purposes, mainly involving
activities that tend to be carried out only by firms that
are specialized in the activity and tend not to have
significant secondary activities.
70
For such purposes, the
EBOPS categories corresponding most closely to the
ICFA categories for services activities have been
indicated in annex IV, table A.IV.1. The reverse
correspondence is shown in annex IV table A.IV.2.
4.43. The present
Manual recognizes that data for
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