## G.2 Treatment of MNE and Intra MNE Flows — Survey Instrument and Main Elements

## Source details

**Canonical URL:** [G.2 Treatment of MNE and Intra MNE Flows — Survey Instrument and Main Elements](https://www.imf.org/-/media/files/data/statistics/bpm6/gztt/g2-treatment-of-mne-and-intra-mne-flows-survey.pdf)

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### Purpose and instructions
- A questionnaire intended for coordinated responses between national agencies responsible for national accounts and balance of payments (for example, National Statistics Office and Central Bank).
- Only one coordinated response is expected even if the survey reaches multiple contacts.
- Contact addresses for clarification: SNA-Globalization@imf.org and sna@un.org.
- Respondent information requested: Name, Title, Country, Organization, Email.
- Question 2 asks which area of macroeconomic statistics the response concerns: National Accounts; Balance of Payments; or Both National Accounts and Balance of Payments.
- Question 3 asks whether the compilation approach is consistent across Balance of Payments and National Accounts (Yes / No).

### Key concerns and user demand
- The questionnaire frames that economic activities of multinational enterprises (MNEs) can significantly affect national accounts and balance of payments statistics and can result in misallocation of GDP that may severely distort macroeconomic indicators.
- Questions ask whether:
  - The statistical treatment of MNEs is a key concern for the economy (Question 4: Yes / No).
  - Users frequently request MNE-related statistics (Question 6: Yes / No).
  - Respondents should explain their Yes/No answers in free-text fields.

### Proposed MNE definition and control principle
- The GZTT proposes to define an MNE as: “a legal entity that has at least one nonresident affiliate or branch, and exercises control over its affiliate(s) or branch(es) either directly—by owning over 50 percent of the voting power in the entity—or by indirect transmission of control; such that the MNE is the ultimate controlling parent or the direct investor at the top of the control chain.”
  - Respondents are asked to rate agreement: Strongly disagree, Disagree, Neutral, Agree, Strongly agree (Question 7).
- The principle of control is aligned with BPM6 (§6.12 – §6.14) and the OECD BD4, and applies the 50 percent of voting power rule more rigidly than the 2008 SNA (§4.81).
  - Question 9 asks whether to align the definition of control in the 2008 SNA with BPM6/BD4 when identifying foreign-controlled units and domestic MNE group units (rating scale: Strongly disagree to Strongly agree).
  - Free-text fields requested for reasons when respondents choose Strongly disagree or Disagree (Questions 8 and 10).

### Four conceptual approaches proposed to highlight MNE activities in the national accounts
- Approach 1: Promoting/highlighting existing macroeconomic aggregates that are less sensitive to globalization (e.g., Gross national income (GNI), net national income (NNI), gross national disposable income (GNDI), net national disposable income (NNDI)).
- Approach 2: Granular data through the institutional sector accounts (ISA) framework.
- Approach 3: Granular data through the extended supply and use tables (eSUTs) framework.
- Approach 4: Break down gross value added (GVA) (for certain industries) to show value added generated by domestic MNEs versus affiliates of foreign MNEs.
- Question 11 asks respondents to rate each approach on a Strongly disagree → Strongly agree scale and to explain their choices.

### Proposal to add four (4) subsectors to the SNA ISA framework
- The Guidance Note proposes four (4) additional subsectors to the SNA to increase ISA granularity (note: the 2008 SNA already includes foreign-controlled nonfinancial and financial corporations):
  - For the financial corporations sector:
    - (i) Private financial corporations which are part of domestic MNE groups
    - (ii) Public financial corporations which are part of domestic MNE groups
  - For the nonfinancial corporations sector:
    - (i) Private nonfinancial corporations which are part of domestic MNE groups
    - (ii) Public nonfinancial corporations which are part of domestic MNE groups
- Question 12 asks whether respondents agree with adopting and defining these four new subsectors in the SNA (rating scale: Strongly disagree → Strongly agree).
- Free-text field requested for reasons when respondents choose Strongly disagree or Disagree (Question 13).

### Practical compilation questions and capacity
- Institutional sector accounts compilation (Question 14): Are institutional sector accounts currently compiled? (Yes / No).
- GVA breakdown capability (Question 15): Is the institution able to break down GVA for certain key industries to identify foreign-controlled units and units part of domestic MNEs? (Yes / No) with a free-text explanation (Question 16).
- Question 17 asks which approaches are considered achievable with current data sources and statistical infrastructure. Options to select:
  - ISA
  - eSUT
  - Breakdown of GVA
  - Compiling or highlighting gross aggregates (GNI, GNDI)
  - Compiling or highlighting net aggregates (NNI, NNDI)
- For any option not considered “Achievable,” Question 18 asks respondents to indicate main challenges from the following list: Staff resources; Access to data; Institutional barriers; Need for better estimates of CFC; Statistical infrastructure; N/A - all approaches could be implemented; Other (with free-text).

### Medium-term planning and guidance materials
- Question 19 asks whether responses to Questions 17 and 18 would change if the Guidance Note proposals were implemented after 3 – 5 years (Strongly disagree → Strongly agree), with a free-text explanation (Question 20).
- The Guidance Note includes a decision tree to assist compilers in allocating MNE units to institutional sectors (referenced as on page 16).
  - Question 21 asks agreement with the decision tree (Strongly disagree → Strongly agree).
  - Question 22 requests additional comments to elaborate on the decision tree.
  - Question 23 asks whether to replace Figure 4.1 in the 2008 SNA with the proposed decision tree in the next SNA update (Strongly disagree → Strongly agree).
  - Free-text explanation requested for Strongly disagree or Disagree responses to Question 23 (Question 24).
- Question 25 asks whether more detailed guidance on the treatment of MNE and intra-MNE flows is needed in the next SNA and BPM manuals (Strongly disagree → Strongly agree), with a free-text explanation (Question 26).

### Business register and identification of MNEs
- Question 27 asks whether the national statistics agency or central bank maintains a business register (Yes / No) with an explanation requested (Question 28).
- Question 29 asks whether foreign-controlled corporations are distinguished in the Business Register (Yes / No) with explanation (Question 30).
- If No to Question 29, Question 31 asks whether the investment required to identify foreign-controlled corporations would be: Small; Average; Large, with an explanation requested (Question 32).
- Question 33 asks whether domestic MNEs are distinguished in the Business Register (Yes / No) with explanation (Question 34).
- If No to Question 33, Question 35 asks whether the investment to identify domestic MNEs would be: Small; Average; Large, with an explanation requested (Question 36).

### Final remarks and optional comments
- Question 37 invites any other comments on the Guidance Note (free-text).
- The instrument is structured as a mix of closed-response items (binary and Likert scales), checkboxes for multiple selections, and free-text fields to capture country-specific explanations or constraints.

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_Source: https://www.imf.org/-/media/files/data/statistics/bpm6/gztt/g2-treatment-of-mne-and-intra-mne-flows-survey.pdf_