World Development Indicators 2012

Page 264

About the data

4.6

ECONOMY

Structure of service exports Definitions

Balance of payments statistics, the main source of

lodging, and transport (within the economy visited),

• Commercial service exports are total service

information on international trade in services, have

including car rental.

exports minus exports of government services not

many weaknesses. Disaggregation of important

included elsewhere. • Transport covers all transport

components may be limited and varies considerably

services (sea, air, land, internal waterway, space,

across countries. There are inconsistencies in the

and pipeline) performed by residents of one economy

methods used to report items. And the recording of

for those of another and involving the carriage of

major flows as net items is common (for example,

passengers, movement of goods (freight), rental of

insurance transactions are often recorded as premi-

carriers with crew, and related support and auxiliary

ums less claims). These factors contribute to a down-

services. Excluded are freight insurance, which is

ward bias in the value of the service trade reported

included in insurance services; goods procured in

in the balance of payments.

ports by nonresident carriers and repairs of trans-

Efforts are being made to improve the coverage,

port equipment, which are included in goods; repairs

quality, and consistency of these data. Eurostat and

of harbors, railway facilities, and airfield facilities,

the Organisation for Economic Co-operation and

which are included in construction services; and

Development, for example, are working together

rental of carriers without crew, which is included

to improve the collection of statistics on trade in

in other services. • Travel covers goods and ser-

services in member countries. In addition, the Inter-

vices acquired from an economy by travelers in that

national Monetary Fund (IMF) has implemented

economy for their own use during visits of less than

the new classifi cation of trade in services intro-

one year for business or personal purposes. • Insur-

duced in the fifth edition of its Balance of Payments

ance and financial services cover freight insurance

Manual (1993).

on goods exported and other direct insurance such

Still, difficulties in capturing all the dimensions of

as life insurance; financial intermediation services

international trade in services mean that the record

such as commissions, foreign exchange transac-

is likely to remain incomplete. Cross-border intrafirm

tions, and brokerage services; and auxiliary services

service transactions, which are usually not captured

such as financial market operational and regulatory

in the balance of payments, have increased in recent

services. • Computer, information, communica-

years. An example is transnational corporations’ use

tions, and other commercial services cover such

of mainframe computers around the clock for data

activities as international telecommunications and

processing, exploiting time zone differences between

postal and courier services; computer data; news-

their home country and the host countries of their

related service transactions between residents and

affiliates. Another important dimension of service

nonresidents; construction services; royalties and

trade not captured by conventional balance of pay-

license fees; miscellaneous business, professional,

ments statistics is establishment trade—sales in

and technical services; and personal, cultural, and

the host country by foreign affiliates. By contrast,

recreational services.

cross-border intrafirm transactions in merchandise may be reported as exports or imports in the balance of payments. The data on exports of services in the table and on imports of services in table 4.7, unlike those in editions before 2000, include only commercial services and exclude the category “government services not included elsewhere.” The data are compiled by the IMF based on returns from national sources. Data on total trade in goods and services from the IMF’s Balance of Payments database are shown in table 4.17. International transactions in services are defined by the IMF’s Balance of Payments Manual (1993) as

Data sources

the economic output of intangible commodities that

Data on commercial service exports are from the

may be produced, transferred, and consumed at the

IMF, which publishes balance of payments data in

same time. Definitions may vary among reporting

its International Financial Statistics and Balance of

economies. Travel services include the goods and

Payments Statistics Yearbook.

services consumed by travelers, such as meals,

2012 World Development Indicators

237


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