The country profiles in this annex complement the OECD Supply Chain Resilience Review and build on data and analysis carried out under the OECD Trade Committee to give a unique country specific perspective. The section on Monitoring supply chain interdependencies gives a snapshot of a country’s integration into global supply chains by looking at global linkages of key industries while also presenting how the significance of import and export concentration has evolved over time. The section on Agile, adaptable and aligned supply chains showcases a set of OECD indicators to assess the transparency and ease of border processes, the level of regulatory barriers to services and digital trade, as well as the overall level of international integration and alignment with best practices. Together, these insights aim to guide governments and the private sector in creating an enabling environment for the agility, adaptability and alignment of their supply chains.
OECD Supply Chain Resilience Review
Global linkages of key industries
This figure illustrates key industries’ reliance on: (i) inputs imported from abroad through the percentage share of an industry’s use of foreign inputs (blue line); and (ii) output exported to foreign markets through the percentage share of an industry’s output that is supplied to foreign markets (green line).
The key industries are as follows:
Raw materials refer to agriculture and mining.
Strategic (defined in terms of potential importance for national and economic security) and non-strategic industries manufacturing sector.
Infrastructure (such as transport and retail) and knowledge-intensive business services (such as corporate, scientific or IT services).
See Table A A.1 for more details.
How to interpret the chart: The blue line shows the percentage use of foreign inputs. The nearer the blue line is to the centre of the chart (0%), the smaller the share of the industry’s use of foreign inputs. The green line shows supply to foreign markets. The nearer the green line is to the centre of the chart (0%), the smaller the share of the industry’s output that is supplied to foreign markets. For more context around this indicator, see Chapter 2 of the OECD Supply Chain Resilience Review.
Data sources and variables construction
The figure presents two indicators of exposure to foreign production. Use of foreign inputs (blue line) is based on foreign product exposure for imports (FPEM) and supply to foreign markets (green line) is based on foreign product exposure for exports (FPEX) (Baldwin, Freeman and Theodorakopoulos, 2022[1]). It can be interpreted as the percentage of a country’s sector that could be exposed to foreign disruptions, both upstream (FPEM) and downstream (FPEX). These indicators are on gross trade terms and account for direct linkages (i.e. the supplier of an input) and indirect linkages (i.e. the supplier’s supplier). Calculations are based on the 2023 vintage of OECD’s Inter-Country Input-Output (ICIO) tables.
The table below shows the industries within each category of key industries. This categorisation builds on the International Standard Industrial Classification of all economic activities (ISIC) revision 4. The split of business services draws from the digital intensity taxonomy of industries developed by the OECD (see Calvino et al. (2018[2]). The manufacturing sector is split into two aggregates: strategic and non-strategic industries, following the definition in IMF's World Economic Outlook, online annex to Chapter 4 (International Monetary Fund, 2023[3]).
Significantly concentrated imports
This figure illustrates the evolution of the number of products that have significant import concentration, i.e. where a country imports a certain product from fewer than half of the globally available suppliers, in a market where supply is already concentrated, in the period 1997-2022.
How to interpret the chart: The dark blue line shows the country’s values, the light blue line represents the OECD average. The y-axis shows the number of products that have significant import concentration. The higher the line is plotted, the greater the number of products imported featuring significant import concentration. For more context around this indicator, see Chapter 3 of the OECD Supply Chain Resilience Review.
Data sources and variables construction
Significant import concentration is defined as cases of bilateral trade links at the product level where the value of the country-level Herfindahl-Hirschman Index of concentration (HHI) for imports is more than double the value of the corresponding HHI for global exports. The concentration indices are calculated across all trading partners, including, intra-EU trade.
To further constrain the spectrum of cases of significant concentration, an additional minimum cut-off value of the HHI calculated for global product-level exports was set at 0.2, as current OECD work uses HHI value of 0.2 to indicate relatively high concentration (see Section 3.3 of the report). This means that only products with a global exports HHI of at least 0.2 and products with country-level imports HHI of at least 0.4 were considered.
Significantly concentrated exports
This figure illustrates the evolution of the number of products that have significant export concentration, i.e. where a country exports a certain product to fewer than half of the globally available markets, in a market where demand is already concentrated, in the period 1997- 2022.
How to interpret the chart: The green line shows the country’s values, the light blue line represents the OECD average. The y-axis shows the number of products that have significant export concentration. The higher the line is plotted, the greater the number of products exported featuring significant export concentration. For more context around this indicator, see Chapter 3 of the OECD Supply Chain Resilience Review.
Data sources and variables construction
Significant export concentration is defined as cases of bilateral trade links at the product level where the value of the country-level Herfindahl-Hirschman Index of concentration (HHI) for exports is more than double the value of the corresponding HHI for global imports. The concentration indices are calculated across all trading partners, including intra-EU trade.
To further constrain the spectrum of cases of significant concentration, an additional minimum cut-off value of the HHI calculated for global product-level imports was set at 0.2, as current OECD work uses HHI value of 0.2 to indicate relatively high concentration (see Section 3.3 of the report). This means that only products with a global imports HHI of at least 0.2 and products with country-level exports HHI of at least 0.4 were considered.
Transparency of regulations
This figure indicates overarching levels of transparency in regulatory approaches affecting trade in goods and services that enable global value chains (GVCs). Regulatory transparency allows firms to foresee and adjust to changes in regulations, thereby enhancing the agility and adaptability of their supply chain.
How to interpret the chart: The closer the needle is to the right of the gauge, the more aligned a country’s legislative approaches are with international best practices on regulatory transparency. The light blue stripe on the gauge represents the OECD average. The range of the gauge represents the maximum and minimum of the OECD sample. For more context around this indicator, see Chapter 6 of the OECD Supply Chain Resilience Review.
Data sources and variables construction
This indicator synthesizes qualitative information reported in the OECD’s 2024 Trade Facilitation Indicators (TFI) in the policy area of “information availability” and the OECD’s 2024 Services Trade Restrictiveness Index (STRI) in the policy area of “regulatory transparency”.
The TFI “information availability” policy area reflects the level and type of information available for border processes of goods, including publication of customs and trade-related regulations and information, feedback mechanisms, and specific functions for businesses (dedicated webpages/portals, user manuals, etc.).
The STRI “regulatory transparency” policy area covers, among others, obligations to communicate regulations to the public prior to entry into force, the existence of adequate stakeholder consultation for legislative initiatives, and transparency on licensing conditions and procedures.
Data from the STRI are limited to those sectors that are classified as “GVC-enabling” services: transport services (air, maritime, rail freight and road freight), logistics services, postal services, courier services, distribution services; and telecommunications services.
This cohesive indicator of regulatory transparency for GVCs was calculated as follows. The score of the policy areas were standardised, so that the score is shown as a percentage of the maximum attainable score. Then they were combined by taking the average of the two, i.e. Transparency of regulations = ((% of TFI’s “information availability” attained) + (% of STRI’s “regulatory transparency” attained))/2.
Barriers to digital services trade
This figure indicates regulatory barriers that inhibit firms’ ability to supply services using electronic networks, regardless of the sector in which they operate.
How to interpret the chart: The closer the needle is to the right of the gauge, the less open the regulatory environment is for digitally enabled trade. 0 indicates an open regulatory environment for digitally enabled trade. The light blue stripe on the gauge represents the OECD average. The range of the gauge represents the maximum and minimum of the OECD sample. For more context around this indicator, see Chapter 6 of the OECD Supply Chain Resilience Review.
Data sources and variables construction
Country results are based on the OECD’s 2024 Digital Services Trade Restrictiveness Index (DSTRI). The DSTRI is a composite index that includes five categories of measures: 1) infrastructure and connectivity; 2) electronic transactions; 3) e-payment systems; 4) intellectual property rights; and 5) other barriers to trade in digitally enabled services. The information evaluated under each of these categories can be found at http://oe.cd/dstri.
Digital trade integration and openness
This figure indicates a measure of evolving international discussions and commitments on issues that matter for digital trade.
How to interpret the chart: The closer the needle is to the right of the gauge, the more open and integrated the county’s digital trade environment. The light blue stripe on the gauge represents the OECD average. The range of the gauge represents the maximum and minimum of the OECD sample. For more context around this indicator, see Chapter 6 of the OECD Supply Chain Resilience Review.
Data sources and variables construction
The OECD’s 2024 Index of Digital Trade Integration and Openness (INDIGO) index distinguishes between two dimensions: (i) INDIGO-i tracks non-trade-related international instruments, including agreements on privacy, cybersecurity, and AI governance; and (ii) INDIGO-t focuses on trade-related instruments, including commitments in WTO agreements, regional trade agreements, and dedicated digital economy agreements.
The data in the figures are drawn from INDIGO-t. It ranges from zero – no international commitments – to one – commitments across all areas covered and with all partners. It can be thought of as a measure of distance towards full trade commitments on issues that matter for digital trade.
Ease of border processes
This figure shows the level of streamlining and simplification of technical and legal procedures for goods at the border, allowing for more agile supply chains. This is assessed through four policy areas from OECD’s Trade Facilitation Indicators (TFI) to reflect the extent to which countries have introduced and implemented trade facilitation measures.
How to interpret the chart: The green bar shows the level of streamlining and simplification, as a percentage, in the four policy areas. The closer the bar is to 100%, the closer the country is at operating at par with best trade facilitation performance. For more context around this indicator, see Chapter 6 of the OECD Supply Chain Resilience Review.
Data sources and variables construction
The data are drawn from the OECD’s 2024 Trade Facilitation Indicators (TFIs), which follow closely the structure of the policy areas covered by the WTO Trade Facilitation Agreement.
The TFIs used here to illustrate the ease of border processes cover four policy areas: formalities in documents, automation and procedures, and border agency co-operation. Formalities-documents (TFI-F) refers to the harmonisation and simplification of trade-related documents, in accordance with international standards; formalities – automation (TFI-G) refers to aspects such as the electronic exchange of data and use of automated risk management; formalities–procedures (TFI-H) includes aspects such as the streamlining of border controls (inspections, clearance), implementation of trade single windows, or certified trader programmes; border agency co-operation is the simple average of internal (TFI-I) and external (TFI-J) border agency co-operation and refers to the institutional frameworks, mechanisms, and IT systems for co-operation between domestic and cross-border agencies.
The indicators are depicted as a percentage of the top TFI score (2) for each area. The information evaluated under each of these areas can be found here: oe.cd/sim-tfi.
Barriers to trade in GVC-enabling services
This figure illustrates the level of regulatory restrictiveness in a country for global value chain (GVC) enabling services (e.g. logistics services, transport, courier, telecommunications, etc.). The higher the restrictions are, the more costly it is for foreign firms to access these services.
How to interpret the chart: The orange line shows the country’s level of restrictiveness in each GVC-enabling services sector. The light blue line represents the OECD average. The nearer the lines are to the centre of the chart (0), the less restrictive the regulatory environment for GVC-enabling services is. For more context around this indicator, see Chapter 6 of the OECD Supply Chain Resilience Review.
Data sources and variables construction
The data is drawn from the OECD’s 2024 Services Trade Restrictiveness Index (STRI) covering eight services sectors that play a key role in connecting global supply chains, namely: transport services (air, maritime, rail freight and road freight), logistics services, postal and courier services, distribution services and telecommunications services.
The indices take values between zero and one, with one indicating the most restrictive regulatory environment for services trade. The information evaluated under each of these sectors can be found at https://sim.oecd.org/.
Regulatory alignment
This figure illustrates the disparities in the ease of the regulatory environment for goods trade and to GVC-enabling services trade across OECD Member countries.
How to interpret the chart: The chart shows where the country (purple dot) lies compared to other OECD countries (grey dots) and the OECD average (light blue dot), therefore showing the level of regulatory alignment on trade facilitation and policies impacting GVC-enabling services. The lower the value (the further left the dot is), the more aligned the country’s regulatory environment is to international best practice. The vertical spread of the dots indicates other OECD Member countries that are at the same level of the indices. For more context around this indicator, see Chapter 6 of the OECD Supply Chain Resilience Review.
Data sources and variables construction
The OECD’s 2024 Services Trade Restrictiveness Index (STRI) of GVC-enabling services takes values between zero and one, with one indicating the most restrictive regulatory environment for services trade.
Ease of GVC-enabling services trade regulations is depicted by the simple average of the sectoral STRIs for GVC-enabling services (transport services (air, maritime, rail freight and road freight), logistics services, postal and courier services, distribution services and telecommunications services).
Ease of goods trade is depicted by the OECD’s 2024 Trade Facilitation Indicator (TFI). The TFI takes a value between zero and 22, with 22 indicating the best trade facilitation performance overall.
To enable comparison between the STRI and TFI, the TFI was transformed as follows: (([Country score] -22)/22)*(-1). This results in a value between zero and one, with one indicating the least facilitating environment for goods trade.
References
[1] Baldwin, R., R. Freeman and A. Theodorakopoulos (2022), Horses for Courses: Measuring Foreign Supply Chain Exposure, National Bureau of Economic Research, Cambridge, MA, https://doi.org/10.3386/w30525.
[2] Calvino, F. et al. (2018), “A taxonomy of digital intensive sectors”, OECD Science, Technology and Industry Working Papers, No. 2018/14, OECD Publishing, Paris, https://doi.org/10.1787/f404736a-en.
[3] International Monetary Fund (2023), World Economic Outlook, IMF, Washington, D.C., https://www.imf.org/-/media/Files/Publications/WEO/2023/April/English/ch4annex.ashx.