Feasibility study on linking ownership info to Exiobase

10/02/2017 09:00
Linking various existing statistics can enable the production of new information and novel indicators regarding economic value chains and their resource use and environmental burden. This report describes a preparatory study which tests the possibility to link enterprise ‘ownership’ information to a Multi-Regional Input Output (MRIO) database with environmental extensions, namely Exiobase. Such a linking allows us to compile a database describing the global economy together with its environmental and resource effects. This will facilitate the assessment of supply chains in terms of the influence that the Netherlands has upon the supply chain, as well as to which regions income transfer are linked, and the environmental and resource burden.

As a consequence of globalisation new statistics are needed to monitor particular phenomena that result from it. The linkage of different existing statistics enables to produce new information with novel indicators on economic value chains and the linkages with resource use and environmental burden for example. This report describes a preparatory study which tests whether it will be possible to link the information on ‘ownership’, called ‘span of control’ of individual enterprises to Exiobase. Exiobase is a Multi-Regional Input Output database (MRIO) with environmental and resource extensions. The usability of the available databases within CBS are explored, such as the UCI (Ultimate Controlling Institute) and the associated FATS (Foreign AffiliaTed Statistics) databases. In addition external database (ORBIS) with detailed ownership information in enterprises across the globe is explored and considered for application in follow-up research.

The study supports linking data on span of control by businesses to Exiobase. Once the link is achieved, a database can be constructed which describes the global economy and its environmental and resource effects with information on which nation’s businesses are engaging in given activities. Such a database creates many possibilities for analysing globalisation, value chains, elements of decision making. As a result it can be seen in which supply chains and related environmental and resource burden, the Netherlands have the least or the most influence as well as to which regions income transfers are linked, influencing Dutch National Income vis-a-vis National Income elsewhere. Insights can also be gained into in which countries and industries Dutch controlled businesses emit greenhouse gasses or use particular resources.

The research has been commissioned by the Ministry of Economic Affairs in an attempt to better understand the role of Dutch enterprises in the global economy, including the monitoring of the environmental and resource impacts of Dutch enterprises. In accordance with the Dutch government program for a circular economy, it is becoming increasingly important to understand these impacts in order to inform policy decision making. For example, the construction of policies aiming to Dutch cut raw material use will benefit from understanding the role of the raw material use of Dutch businesses in global supply chains.

The Dutch ministry of Economic Affairs commissioned this feasibility study on globalisation and ownership to better understand the role of Dutch enterprises in the global economy, including onto resource use and environmental burden. This report shows the results of a feasibility study of linking data on ownership of businesses to the Multi-Regional Input Output database (MRIO) named Exiobase. The feasibility study concludes that such a linking is feasible. It is therefore feasible, in a possible follow-up study, to create a database that describes the global economy in regions together with its regional environmental and resource effects and combine it with information on which Dutch businesses abroad are engaging in given activities and from what country. Such a database creates prospect for analysing global value chains and connected environmental burden in conjunction with elements of decision making either in the Netherland or abroad.