e-Frame European Framework for Measuring Progress

WP6 Globalization

Leader:RuG
Participants:CBS, OFCE, OECD
Starting time:January 2012
Objectives: The ongoing process of globalisation puts particular challenges to the measurement of wellbeing indicators. Increasing interdependency between countries and regions requires taking into account effects of domestic activities on welfare elsewhere in the world, and the other way around. This suggests the development of new indicators and analytical frameworks that start from this fundamental interdependency between countries. In particular we will focus on the effects of the increasing fragmentation of the production of goods and services across the globe for measures of imports, exports and balance of payments, and for various measures of resource use and environmental pollution. Many initiatives in this area have already been undertaken. It is the aim of this work package to survey the work being done so far, organising a workshop to invite original contributions to the field which will lead to suggestions both for development of new statistical data and new methodological frameworks.
Description of work: Task 1: New measures of international trade (OFCE)
With the increasing fragmentation of global production of goods and services, traditional measures of international trade such as gross exports and imports flows become less useful to assess the competitiveness of nations. In addition, there is a strong need to have a better understanding of the interdependencies of production in various regions and countries through global production chains. A report will be written that surveys the current initiatives on the measurement of the so-called factor content of trade which rely on combining international trade data, national production factor data and input-output tables. It outlines the various statistical problems that still remain, both at the national and international level, and indicates avenues for further improvement.

Task 2: Footprint calculation (CBS)
With the increasing disconnect of production and consumption of goods and services, it becomes important to measure the use of resources and environmental pollution of domestic consumption of nations (so-called footprints). A report will be written that will provide an inventory of academic and statistical work on foot printing methods. The summary will include the methodological aspects of the ecological, carbon and water foot printing activities as well as the input-output techniques that often adopted in these calculations. A review of the available data resources will be provided. The reports aim is to contribute to the further harmonization and methodological refinement of these calculations at NSI's. This will involve further harmonisation of input-output tables and making international trade consistent across countries (see task 1), as well as improving national resource use and pollution indicators, which discussion will be coordinated with tasks WP 4. Since this task is very much related to the work in WP4 there will be close contact and interaction on this subject. However, the calculations that are involved are very much linked to the databases that are also important in globalisation (namely the FP7 World input output database (WIOD)), which is why this activity is a sub-task of the work package on globalisation. The possibilities to expand footprint calculations to non–environmental issues will also be explored (labour, knowledge capital content of imports and exports).

Task 3: Workshop on The Wealth of Nations in a Globalising World (RuG, OFCE, CBS)
The RUG will organise a workshop on The Wealth of Nations in a Globalising World in which papers will be invited from experts both within and outside the consortium on the consequences of increasing globalisation on the interdependence of welfare between nations. Before the workshop the RUG will prepare a positioning paper, outlining the various issues at stake and, after the conference, the proceedings will be made available.
Deliverables:
    D6.1: Report on New measures of international trade (September 2012)
    D6.2: Report on Footprint calculation (December 2012)
    D6.3: Workshop on The Wealth of Nations in a globalising world (April 2013)