Services Trade by Enterprise Characteristics 2020

Services Trade by Enterprise Ownership

Type of ownership indicates whether an enterprise is domestic or foreign controlled. A domestic enterprise is defined as either domestic indigenous or as domestic multinational (with foreign control of less than 50%). A foreign controlled multinational enterprise (MNE) is defined as having foreign control of more than 50%. A high proportion of foreign controlled services enterprises generally represent a globalised economy which is well integrated in international markets.

Foreign controlled enterprises dominated both service exports and imports in 2020, exporting €215bn (84%) and importing €292bn (89%) of total services. The remaining €41bn (16%) of service exports and €36bn (11%) of service imports were provided by domestic enterprises. See figure 5.1.

Foreign controlled enterprises in the Information and Communications sector imported €150bn (46%) of total services, with 4% imported from EU and 41% imported from non-EU countries, of which 1% were imported from UK and 18% imported from the US. Domestic controlled enterprises importing services in the Information and Communication sector accounted for less than 1% of total services. Foreign controlled enterprises in the Manufacturing sector imported €111bn (34%) of total services, with 3% imported from EU and 31% imported from non-EU countries.  Foreign enterprises in the Financial & Insurance and in other sectors imported €18bn and €14bn (5% and 4%) of service respectively.  

Domestic enterprises in the Manufacturing sector and the Financial & Insurance sector imported just €12bn (4%) and €17bn (5%) of total services respectively while domestic enterprises in other sectors imported another €7bn (2%) of total services. See figure 5.3 and table 5.2.

All transport and travel services exports (€5bn) and 82% (€15bn) of financial service exports were provided by domestic enterprises in 2020.  All repair and processing exports (€2bn) and all computer services exports (€138bn) were provided by foreign controlled enterprises. 

Foreign controlled enterprises also accounted for 77% (€45bn) of business services exports.  Insurance/pension services exports were also dominated by foreign controlled enterprises (actual percentage not provided for confidentiality reasons).  See figure 5.4 and table 5.3.

All transport and travel services imports (€6bn) and 84% (€15bn) of financial service imports were provided by domestic enterprises.  Foreign controlled enterprises provided 97% (€8.7bn) of computer services imports, 97% (€82bn) of Royalty imports and 95% (€182bn) of business services imports. Foreign controlled enterprises also dominated Insurance/pension services imports, providing 98% (9.2bn) of the total as well as repairs and processing imports (actual percentages for repairs and processing services not provided for confidentiality reasons). See figure 5.5 and table 5.4.