FATS Statistics:Producing Statistics for Broadly-Defined Trade in Services

FATS (Foreign Affiliates Trade in Services) statistics illuminate the activities of the overseas affiliates of multinational corporations. FATS statistics are drawing attention as a supplement to balance of payments statistics, which reflect only resident-to-nonresident transactions. While many companies provide services in other economies through overseas branches or affiliates, such services are excluded from balance of payments statistics because branches and affiliates are considered to be the residents of the "economy in which they are located." The United States has been compiling data similar to FATS statistics since the 1950s. Eurostat has been compiling FATS statistics for the EU since the second half of the 1990s using a uniform survey format. Japan has various micro-economic surveys that are extremely similar to FATS. However, by international comparison, Japan's FATS statistics are not necessarily well developed. FATS statistics are useful in gauging the influence of foreign direct investment and the impact of entry barriers levied on foreign companies. For the development of FATS statistics, it is desirable to establish a consultation for discussion involving both compilers and users of these statistics.