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Consistency in a Globalised Economy: Aligning the Treatment of R&D in the Irish National Accounts and Balance of Payments

Author

Listed:
  • Niamh Holton
  • Margaret Kinsella
  • Oisín Mangan
  • Shaun McLaughlin
  • Patrick Quill

Abstract

[eng] Increasing globalisation of the world’s business economy presents challenges to compilers of official statistics when producing consistent economic accounts. This paper examines two inconsistencies between national accounts and balance of payments – firstly, in the measurement of depreciation of intellectual property products, and secondly, in the recording of expenditure on research and development (R&D) services. These inconsistencies can lead to sizeable discrepancies in net factor flows in the national accounts. Business data collected by the Central Statistics Office in Ireland is used to measure the divergence between the balance of payments and national accounts. The findings suggest that it is necessary to adjust the balance of payments data related to intellectual property products and R&D services to ensure consistency with national accounting methodology.

Suggested Citation

  • Niamh Holton & Margaret Kinsella & Oisín Mangan & Shaun McLaughlin & Patrick Quill, 2020. "Consistency in a Globalised Economy: Aligning the Treatment of R&D in the Irish National Accounts and Balance of Payments," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 517-518-5, pages 191-204.
    • Handle: RePEc:nse:ecosta:ecostat_2020_517t_12
    DOI: https://doi.org/10.24187/ecostat.2020.517t.2025
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    References listed on IDEAS

    as
    1. Daniel Ker & Fernando Galindo-Rueda, 2017. "Frascati Manual R&D and the System of National Accounts," OECD Science, Technology and Industry Working Papers 2017/06, OECD Publishing.
    2. Jennifer Bruner & Dylan G. Rassier & Kim J. Ruhl, 2018. "Multinational Profit Shifting and Measures throughout Economic Accounts," NBER Chapters, in: Challenges of Globalization in the Measurement of National Accounts, pages 153-205, National Bureau of Economic Research, Inc.
    3. Marie-Baïanne Khder & Jérémi Montornès & Nicolas Ragache, 2020. "Irish GDP Growth in 2015: A Puzzle and Propositions for a Solution," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 517-518-5, pages 173-190.
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    Cited by:

    1. Marie-Baïanne Khder & Jérémi Montornès & Nicolas Ragache, 2020. "Irish GDP Growth in 2015: A Puzzle and Propositions for a Solution," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 517-518-5, pages 173-190.

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    More about this item

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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