Value Added from Trade for Key Business and Financial Service Industries: Initial Estimates

Abstract

The value of exports to the domestic UK economy does not equal gross export flows, as some of the value-added within UK exports may have been generated abroad. For key business and financial service industries we present new and initial estimates giving a lower bound for the value-added component of exports generated directly by the domestic exporting sector, called the direct domestic value-added component of exports. Our initial estimates suggest that at least 38 per cent of UK monetary financial institutions (MFIs) exports in 2016 was direct domestic value-added amounting to £14.6bn, of which £5.0bn came from exports to the EU. These initial estimates suggest that approximately 80 per cent of accountancy and legal services exports in 2014 were direct domestic value-added amounting to £1.7bn and £5.2bn respectively, of which £500mn and £1.7bn came from exports to the EU respectively.

Keywords

value-added from exports business services exports financial services exports

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References

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Pilkington

and Rowe

(2017), ‘Constructing estimates for exports and the value-added from exports of monetary financial institutions in the UK’, ESCoE Technical Report, available at https://www.escoe.ac.uk/projects/granularity-trade-value-added-data-key-sectors/.

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