Measures of trade in value-added (TiVA) have transformed our ability to understand the scale and complexity of global value chains. However, to a large extent, the accuracy of these estimates is determined by the granularity of information used to construct them. Because exporting firms typically have higher shares of imports in their intermediate inputs than non-exporting firms in the same sector, input-output tables that do not account for firm heterogeneity provide lower-bound estimates of the importance of imports for exports, and therefore undermine the degree of a country or sector’s integration into global value chains (GVCs).
Moreover, additional attention should also be devoted to firms themselves. Even within narrowly defined industries, firms exhibit distinctive characteristics in terms of size, ownership, productivity, and skilled-labour intensity, and therefore they are integrated into GVCs in different ways and to different extends. Since the OECD and some National Statistical Offices first began this research in 2014, studies haves been carried out using either aggregated business data (such as TEC, STEC, AMNE, and SDBS) or in collaboration with national statistical offices using micro-data. Tremendous progress has been made in the past few years, but the country’s coverage remains patchy.
Therefore, the OECD Expert Group on Extended Supply and Use Tables (EGESUTs) is created to promote best practices and to encourage more countries to join these existing efforts. Established in 2014 and officially reporting to the OECD Working Party on National Accounts, the Expert Group is collaborating at an international level with experts from the National Statistical Offices. Its current mandate, which was endorsed in December 2020, is to provide: