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Three main points in our paper

This paper discusses the MNE Pilot Exercise and its significance in measuring cross-border activity of multinational enterprises. It highlights the need for setting up Large Cases Units (LCUs) and emphasizes the importance of international cooperation. The paper concludes that cooperation and the development of best practices are essential in capturing the value added by MNEs.

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Three main points in our paper

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  1. Globalisation challenges in business and macroeconomic statistics– Assessing the MNE Pilot Exercise Jon Mortensen, Statistics Denmark (jmo@dst.dk) Annette Thomsen, Statistics Denmark (ath@dst.dk)

  2. Three main points in ourpaper • Experience from the MNE Pilot Exercisecanhelpdevelopbestpractice on how to measure the cross border activity of MNEs • Setting up Large Cases Units (LCUs) is a necessaryculturalchange in the wayweproduce business and macroeconomicstatistics. Sixconditions for it to besuccessfullareformulated • International cooperation is important but shouldtakeplace in small steps

  3. The MNE Pilot Exercise in short • The MNE Pilot Exercise (MultiNational Enterprise) is a European initiative to address the challenges of how to measure the cross border activity of multinational Enterprises in GDP and GNI • It was set up in the framework of controlling the recording of valueadded of MNEsacross EU Member States in GDP and GNI and is endorsed by the ESSC • It is a definedexerciserunning for a limitedperiod of time examing the recording of valueadded and employment for 25 selectedMNEs

  4. The MNE Pilot Exercise in short • The MNE Pilot Exerciseillustrates a new way of working:- Within national statistical institutions (NSIs)- BetweenNSIsThe followingwillfocus on thesetwoaspects

  5. Cooperationwithinstatistical institutions • Reconciliation of data at the microlevelshouldbe done in cooperationbetween business and macroeconomicstatistics • On large MNEs, weneed to movefrom ”silos” to LCUs (Large Cases Units) • Six fundamental conditions for an LCU to besuccessfull: • Acknowledgement at all levels • Explicit agreements on division of work and tasks • Clear organisational set up • Minimum level of it-infrastructure • Necessaryskills • Sufficient dedicated ressources

  6. CooperationbetweenNSIs • Exchange of micro data betweencountriesrequires an agreedframeworkrelated to: • The legal basis • Secure it-platform • Code of conduct • The starting point varies between countries • Should be developed in small steps • A first step could be LCU networks

  7. Conclusion • The MNE Pilot Exercise made it clear that cooperation is necessary in order to capture correctly the value added of MNEs between countries • It is necessay to move from producing statistics in silos to produce statistics in cooperation between business and macro economic statistics • LCUs are key in securing the cooperation is successfull • International cooperation should be developed in small steps starting with LCU networks and development of best practices

  8. Thankyou!

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