General structure of the FATS
Survey

Main recommendations:
1. Manual on Statistics of International Trade in
Services
2. Handbook of Economic Globalisation
Indicators

Statistics compiled:
1. International trade globalisation
2. Activities of Multinational Enterprises
General structure of the FATS
Survey

Groups of Multinational companies
1. Inward companies – Domestic companies
controlled by foreign parents
2. Outward companies – Domestic companies
controlling foreign affiliates
3. Inward-Outward companies – Domestic
companies having foreign subsidiaries and
also controlled by foreign parents
General structure of the FATS
Survey

Majority ownership criterion
1. Direct Inward/Outward companies
2. Domestic Parent groups
3. Domestic Inward groups
4. Foreign Parent and CAs Groups (only partial)
General structure of the FATS
Survey
All relevant variables classified by:
 Countries
 Industries – ISIC – Two digits level
Population of the survey
 The MBR (Multinational Business
Register)
A register of multinational
enterprises operating in Israel was
created and the survey was based on the
population covered by the register
Population of the survey
 The MBR includes:
• Direct Inward/Outward companies
• Domestic companies linked upward or
downward to direct Outward companies
by a +50% ownership (Domestic Parent
Group)
Population of the survey
• Domestic companies linked downward to
direct Inward companies in the same way
(subsidiaries of direct Inward companies)
• Affiliates abroad, directly controlled by
domestic Outward companies and foreign
parents of domestic Inward companies
It may be a lack of coverage of companies linked to direct
Inward/Outward companies, specially regarding foreign
enterprises
Sources of data
 The Business Registry Office, where
companies must register their names, main
occupation and details on owners of shares
 CBS Central Business Register
 Israel Securities Authority
 Tel-Aviv Stock Exchange
 Companies engaged in business information
and data bases, as D&B, BDI, etc
 Press information
FATS Variables – International
Trade
 Total exports and imports of goods and
services, by Inward and Outward domestic
companies, classified by countries and
industries.
FATS Variables – International
Trade
 International
trade
of
Inward
companies, distributed according to
trade partners abroad, as follows:
1. Foreign parent group
2. Other affiliates abroad
3. Other (non-affiliates) foreign residents
FATS Variables – International
Trade
 International trade of Outward
companies, distributed according to
trade
partners,
as
follows:
1. CAs abroad
2. Other affiliates abroad
3. Other (non-affiliates) foreign residents
FATS Variables – International
Trade
 Sales of goods and services by
subsidiaries abroad of domestic
Outward companies, classified by
country of sales.
FATS Variables – AMNE
 Value added
 Output
 Employment
All these variables related to Inward and
Outward companies and classified by
industries
The sample

The sample was based on :
1. Industries according to ISIC two digits
level
2. Size of companies according to
turnover
Computation of estimates
 International Trade
1. Total exports and imports of
goods
• Reports from companies in the sample
• Annual customs’ data on a company
basis of exports and imports of goods
– BOP adjusted
Computation of estimates
2. Total exports and imports of services
•
•
•
•
Reports from companies in the sample
Exports – Exempted VAT data revenues
combined with customs’ data on exports of
goods and analysis in a company level for
amounts exceeding a defined threshold
Imports – ITRS data adjusted by preliminary
total import figures of the EBOPS sample
survey
End of year 2006: Results of the new EBOPS
survey are expected
Computation of estimates
3. Intra-firm trade and trade with unaffiliated
foreigners
•
Reports from the companies in the sample and
grossing-up according to total exports and
imports in each industry and size group
4. Sales of goods and services by CAs abroad
•
Reports from the companies in the sample
(additional request) and grossing-up by
industry and turnover of parents
%
Main findings
45
40
35
30
25
20
15
10
5
0
Outward and Inward exports and imports from total
exports and imports
Outward
exports
Inward
Exports
Outward
Imports
Inward
Imports
Main findings
US$ Billion
Outward exports and CA sales abroad
15
14
13
12
11
10
9
8
7
6
5
4
3
2
1
0
Outward
exports
Sales of
subsidiaries
abroad
Main findings
%
Intra-firm trade
100
90
80
70
60
50
40
30
20
10
0
Outward
exports
Inward
exports
Main problems in data reporting
 Consolidated data excluding subsidiaries
abroad
 Imports by countries
 Sales of goods and services by foreign
subsidiaries
Recommendations for expansion in
future surveys

Complementary data to FDI

If expanding of CAs abroad is heavy financed by
credit in host countries, instead of FDI:
FDI may not be well related to total activities of CAs
abroad

Additional indicator suggested:
Total assets of CAs abroad =
Total foreign controlled assets by parent domestic
companies
Recommendations for expansion
in future surveys

This last variable will be closer related to
the level of subsidiaries’ activities abroad
independently of the financing scheme
adopted by the enterprise

FDI results – Could be misleading in
comparing:
Countries – Periods of time – Inward and
Outward FDI
Recommendations for expansion
in future surveys
 Additional use: Share of foreign
controlled assets financed by
“external” as opposed to
“internal’’ funds.
Recommendations for expansion
in future surveys
 Outsourcing of production abroad
Only Outsourcing of production
that is related to activities of
Inward or Outward companies are
currently included
Some final remarks
 Exclusion of variables that may be
estimated by administrative files
 Improvement in collection of data on other
variables, as UBO, additional activities of
subsidiaries abroad, total assets of these
subsidiaries, etc.
Thank you
Computation of estimates

Activities of Multinational Enterprises
1. Output
•
•
•
•
Reports from companies in the sample
Income Tax data
VAT data
Change in stocks of finished goods and
work-in-progress – Industry basis – CBS
Business Department
Computation of estimates
2. Value Added
• Reports from the companies in the
sample and grossing-up according to
industry and turnover
• Indirect taxes: On an industry basis
according to averages from the CBS
Business Department
Computation of estimates
3. Employment
• Reports from companies in the sample
• Data from the National Insurance
Institution