Value added from trade for key business and financial service industries: initial estimates

| Publication date: 1 Nov 2017 | Theme: Trade, Investment & Productivity | NIESR Author(s): Ebell, M; Srinivasan, S | External Author(s): Pilkington, J; Rowe, J | JEL Classification: C81, F10 | Journal: National Institute Economic Review | Publisher: Sage Publications, London

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.

Keyword tags: 
value-added from exports
business services exports
financial services exports