A Trading Nation: analytical methodology note

An analytical methodology note produced to accompany the publication of A Trading Nation - a plan for growing Scotland's exports


Annex A

Table 5: Goods sectors in the Export Value Gap model

SITC2 Code

Sector Name (SITC)

Export Growth Plan Sector

00

Live animals other than animals of division 03

Food and Drink

01

Meat & meat preparations

Food and Drink

02

Dairy products & birds' eggs

Food and Drink

03

Fish, crustaceans, molluscs & aq.inverts & preps thereof

Food and Drink

04

Cereals & cereal preparations

Food and Drink

05

Vegetables & fruit

Food and Drink

06

Sugar, sugar preparations & honey

Food and Drink

07

Coffee, tea, cocoa, spices & manufactures thereof

Food and Drink

08

Feeding stuff for animals (not inc.unmilled cereals)

Other (mostly Agricultural)

09

Miscellaneous edible products & preparations

Food and Drink

11

Beverages

Food and Drink

12

Tobacco & tobacco manufactures

Other (mostly Agricultural)

21

Hides, skins & furskins, raw

Textiles

22

Oil seeds & oleaginous fruits

Other (mostly Agricultural)

23

Crude rubber (including synthetic & reclaimed)

Chemical Sciences

24

Cork & wood

Forest & Timber

25

Pulp & waste paper

Forest & Timber

26

Textile fibres not manufactured & their waste etc

Textiles

27

Crude fertilizers & crude minerals (exc fuels etc)

Chemical Sciences

28

Metalliferous ores & metal scrap

Engineering and Advanced Manufacturing

29

Crude animal & vegetable materials n.e.s.

Other (mostly Agricultural)

32

Coal, coke & briquettes

Chemical Sciences

33

Petroleum, petroleum products & related materials

Chemical Sciences

34

Gas, natural & manufactured

Utilities

35

Electric current

Utilities

41

Animal oils & fats

Other (mostly Agricultural)

42

Fixed vegetable fats & oils, crude,refined,fractionated

Other (mostly Agricultural)

43

Animal or vegetable fats & oils, processed, & waxes

Other (mostly Agricultural)

51

Organic chemicals

Chemical Sciences

52

Inorganic chemicals

Chemical Sciences

53

Dyeing, tanning & colouring materials

Chemical Sciences

54

Medicinal & pharmaceutical products

Life Sciences

55

Essential oils & perfume materials; toilet preps etc

Chemical Sciences

56

Fertilizers (other than those of group 272)

Chemical Sciences

57

Plastics in primary forms

Chemical Sciences

58

Plastics in non-primary forms

Chemical Sciences

59

Chemical materials & products n.e.s.

Chemical Sciences

61

Leather, leather manufactures n.e.s & dressed furskins

Textiles

62

Rubber manufactures n.e.s.

Chemical Sciences

63

Cork & wood manufactures (excluding furniture)

Manufacturing for Construction

64

Paper, paperboard & manufactures thereof

Forest & Timber

65

Textile yarn, fabrics, made up articles etc

Textiles

66

Non-metallic mineral manufactures n.e.s.

Manufacturing for Construction

67

Iron & steel

Engineering and Advanced Manufacturing

68

Non-ferrous metals

Engineering and Advanced Manufacturing

69

Manufactures of metal n.e.s.

Engineering and Advanced Manufacturing

71

Power generating machinery & equipment

Engineering and Advanced Manufacturing

72

Machinery specialized for particular industries

Engineering and Advanced Manufacturing

73

Metalworking machinery

Engineering and Advanced Manufacturing

74

General industrial machinery & eqp. & machine pt.n.e.s.

Engineering and Advanced Manufacturing

75

Office machines & adp machines

Technology, Software and Communication

76

Telecomms & sound recording & reproducing app. & eqp.

Technology, Software and Communication

77

Ele machinery, app & appliances & ele pt thereof n.e.s.

Technology, Software and Communication

78

Road vehicles (including air cushion vehicles)

Engineering and Advanced Manufacturing

79

Other transport equipment

Engineering and Advanced Manufacturing

81

P/fab buildings;sanit.,plumbing,heating &lighting fixt.

Manufacturing for Construction

82

Furniture & parts thereof; bedding, mattresses etc

Engineering and Advanced Manufacturing

83

Travel goods, handbags & similar containers

Engineering and Advanced Manufacturing

84

Articles of apparel & clothing accessories

Textiles

85

Footwear

Textiles

87

Professional, scientific & controlling ins & app n.e.s.

Life Sciences

88

Photographic & optical goods, n.e.s.; watches & clocks

Technology, Software and Communication

89

Miscellaneous manufactured articles n.e.s.

Engineering and Advanced Manufacturing

93

Special transactions and commodities not classified according to kind

Other (mostly Agricultural)

96

Coin (other than gold coin), not being of legal tender

Not assigned

98

Military arms and ammunition

Defence

Table 6: Services sectors included in the model (including mapping to Export Growth Plan sectors)

EBOPS code

Sector Name

Export Growth Plan Sector

1.1

Sea transport

Transportation and Storage

1.2

Air transport

Transportation and Storage

1.3

Other transport

Transportation and Storage

3.1

Postal and courier services

Transportation and Storage

3.2

Telecommunications services

Technology, Software and Communication

5

Insurance services

Financial and Business Services

6

Financial services

Financial and Business Services

7

Computer and information services

Technology, Software and Communication

9.1

Merchanting and other trade-related services

Wholesale and Retail Trade

9.2

Operational leasing services

Financial and Business Services

9.3.1

Legal, accounting, management consulting, and public relations

Financial and Business Services

9.3.2

Advertising, market research, and public opinion polling

Financial and Business Services

9.3.3

Research and development

Life Sciences

9.3.4

Architectural, engineering, and other technical services

Engineering and Advanced Manufacturing

9.3.5

Agricultural, mining, and on-site processing services

Energy

9.3.6

Other business services

Financial and Business Services

10.1

Audiovisual and related services

Technology, Software and Communication

10.2.1

Education services

Education

10.2.3

Other

Sustainable Tourism

Table 7: Mapping SIC services sectors to EBOPS classification

2 Digit SIC code

Sector name

EBOPS (comparator list)

9

Mining Support Service Activities

9.3.5 Agricultural, mining, and on-site processing services

45

Wholesale and Retail Trade and Repair of Motor Vehicles and Motorcycles

9.1 Merchanting and other trade-related services

46

Wholesale Trade, Except of Motor Vehicles and Motorcycles

9.1 Merchanting and other trade-related services

47

Retail Trade, Except of Motor Vehicles and Motorcycles

9.1 Merchanting and other trade-related services

49

Land Transport and Transport via Pipelines

1.3 Other transport

50

Water Transport

1.1 Sea transport

51

Air Transport

1.2 Air transport

52

Warehousing and Support Activities for Transportation

1.3 Other transport

53

Postal and Courier Activities

3.1 Postal and courier services

55

Accommodation

56

Food and Beverage Service Activities

9.1 Merchanting and other trade-related services

58

Publishing Activities

9.3.6 Other business services

59

Motion Picture, Video and Television Programme Production, Sound Recording and Music Publishing Activities

10.1 Audiovisual and related services

60

Programming and Broadcasting Activities

10.1 Audiovisual and related services

61

Telecommunications

3.2 Telecommunications services

62

Computer Programming, Consultancy and Related Activities

7 Computer and information services

63

Information Service Activities

7 Computer and information services

64

Financial Service Activities, Except Insurance and Pension Funding

6 Financial services

65

Insurance, Reinsurance and Pension Funding, Except Compulsory Social Security

5 Insurance services

66

Activities Auxiliary to Financial Services and Insurance Activities

6 Financial services

68

Real Estate Activities

9.3.6 Other business services

69

Legal and Accounting Activities

9.3.1 Legal, accounting, management consulting, and public relations

70

Activities of Head Offices; Management Consultancy Activities

9.3.1 Legal, accounting, management consulting, and public relations

71

Architectural and Engineering Activities; Technical Testing and Analysis

9.3.4 Architectural, engineering, and other technical services

72

Scientific Research and Development

9.3.3 Research and development

73

Advertising and Market Research

9.3.2 Advertising, market research, and public opinion polling

74

Other Professional, Scientific and Technical Activities

9.3.6 Other business services

77

Rental and Leasing Activities

9.2 Operational leasing services

78

Employment Activities

9.3.6 Other business services

79

Travel Agency, Tour Operator and Other Reservation Service and Related Activities

80

Security and Investigation Activities

9.3.6 Other business services

81

Services to Building and Landscape Activities

9.3.6 Other business services

82

Office Administrative, Office Support and Other Business Support Activities

9.3.6 Other business services

85

Education

10.2.1 Education services

90

Creative, Arts and Entertainment Activities

10.2.3 Other

91

Libraries, Archives, Museums and Other Cultural Activities

10.2.3 Other

95

Repair of Computers and Personal Household Goods

9.1 Merchanting and other trade-related services

Table 8: Countries included in the Export Growth Plan model

Algeria

Cyprus

Indonesia

Namibia

Slovakia

Angola

Czech Republic

Iran

Netherlands

Slovenia

Argentina

Denmark

Irish Republic

New Zealand

South Africa

Australia

Dominican Rep

Israel

Nigeria

Spain

Austria

Ecuador

Italy

Norway

Sri Lanka

Azerbaijan

Egypt

Jamaica

Oman

Sweden

Bahrain

Estonia

Japan

Pakistan

Switzerland

Bangladesh

Ethiopia

Jordan

Panama

Syria

Belgium

Finland

Kazakhstan

Peru

FYR Macedonia

Botswana

France

Kenya

Philippines

Thailand

Brazil

Georgia

Kuwait

Poland

Trinidad:Tobago

Bulgaria

Germany

Latvia

Portugal

Tunisia

Cameroon

Ghana

Lebanon

Qatar

Turkey

Canada

Greece

Lithuania

South Korea

Ukraine

Chile

Guatemala

Luxembourg

Romania

UAE

China

Guyana

Malaysia

Russia

Tanzania

Hong Kong

Honduras

Malta

Saudi Arabia

Uruguay

Colombia

Hungary

Mauritius

Senegal

United States

Costa Rica

Iceland

Mexico

Serbia

Vietnam

Croatia

India

Morocco

Singapore

Zimbabwe

Table 9: Competitor countries chosen in the Export Value Gap tool – goods sectors

SITC Code

Sector name

Chosen competitor

00

Live animals other than animals of division 03

Finland

01

Meat & meat preparations

Finland

02

Dairy products & birds' eggs

Norway

03

Fish,crustaceans,molluscs & aq.inverts & preps thereof

Denmark

04

Cereals & cereal preparations

Finland

05

Vegetables & fruit

Ireland

06

Sugar, sugar preparations & honey

Finland

07

Coffee, tea, cocoa, spices & manufactures thereof

Norway

08

Feeding stuff for animals (not inc.unmilled cereals)

Norway

09

Miscellaneous edible products & preparations

Finland

11

Beverages

Ireland

12

Tobacco & tobacco manufactures

Finland

22

Oil seeds & oleaginous fruits

Ireland

23

Crude rubber (including synthetic & reclaimed)

Finland

25

Pulp & waste paper

Ireland

26

Textile fibres not manufactured & their waste etc

Ireland

28

Metalliferous ores & metal scrap

Ireland

29

Crude animal & vegetable materials n.e.s.

Ireland

32

Coal, coke & briquettes

Denmark

33

Petroleum, petroleum products & related materials

Norway

34

Gas, natural & manufactured

Finland

41

Animal oils & fats

Ireland

42

Fixed vegetable fats & oils, crude,refined,fractionated

Ireland

43

Animal or vegetable fats & oils, processed, & waxes

Norway

51

Organic chemicals

Denmark

52

Inorganic chemicals

Finland

53

Dyeing, tanning & colouring materials

Finland

54

Medicinal & pharmaceutical products

Finland

55

Essential oils & perfume materials; toilet preps etc

Finland

56

Fertilizers (other than those of group 272)

Finland

57

Plastics in primary forms

Ireland

58

Plastics in non-primary forms

Denmark

59

Chemical materials & products n.e.s.

Ireland

61

Leather, leather manufactures n.e.s & dressed furskins

Denmark

62

Rubber manufactures n.e.s.

Finland

64

Paper, paperboard & manufactures thereof

Denmark

65

Textile yarn, fabrics, made up articles etc

Denmark

66

Non-metallic mineral manufactures n.e.s.

Ireland

67

Iron & steel

Norway

68

Non-ferrous metals

Denmark

69

Manufactures of metal n.e.s.

Finland

71

Power generating machinery & equipment

Denmark

72

Machinery specialized for particular industries

Norway

73

Metalworking machinery

Denmark

74

General industrial machinery & eqp. & machine pt.n.e.s.

Finland

75

Office machines & adp machines

Denmark

76

Telecomms & sound recording & reproducing app. & eqp.

Finland

77

Ele machinery, app & appliances & ele pt thereof n.e.s.

Denmark

78

Road vehicles (including air cushion vehicles)

Norway

79

Other transport equipment

Finland

81

P/fab buildings;sanit.,plumbing,heating &lighting fixt.

Norway

82

Furniture & parts thereof; bedding, mattresses etc

Ireland

83

Travel goods, handbags & similar containers

Finland

84

Articles of apparel & clothing accessories

Finland

85

Footwear

Finland

87

Professional, scientific & controlling ins & app n.e.s.

Finland

88

Photographic & optical goods, n.e.s.; watches & clocks

Denmark

89

Miscellaneous manufactured articles n.e.s.

Finland

96

Coin (other than gold coin), not being of legal tender

Denmark

Table 10: Competitor countries chosen in the Export Value Gap tool – services sectors

EBOPS code

Sector Name

Chosen competitor

1.1

Sea transport

Poland

1.2

Air transport

Sweden

1.3

Other transport

Sweden

3.1

Postal and courier services

Sweden

3.2

Telecommunications services

Sweden

5

Insurance services

Denmark

6

Financial services

Ireland

7

Computer and information services

Sweden

9.1

Merchanting and other trade-related services

Sweden

9.2

Operational leasing services

Belgium

9.3.1

Legal, accounting, management consulting, and public relations

Sweden

9.3.2

Advertising, market research, and public opinion polling

Sweden

9.3.3

Research and development

Poland

9.3.4

Architectural, engineering, and other technical services

Sweden

9.3.5

Agricultural, mining, and on-site processing services

Netherlands

9.3.6

Other business services

Poland

10.1

Audiovisual and related services

Poland

10.2.1

Education services

Poland

10.2.3

Other

Belgium

Table 11: Indicators used in sector prioritisation

Indicator

Source

Current exports and market size

Value of Scottish exports in sector, 2014-16 average

HMRC regional trade statistics, Scotland’s Export performance monitor (Scotland’s Export Performance Monitor)

Size of world import market in sector, 2014-16 average

UN COMTRADE

Sector growth potential

Long-term growth in Scotland’s exports in sector, absolute value, 2006-16

HMRC regional trade statistics, Scotland’s Export performance monitor (Scotland’s Export Performance Monitor)

Recent growth in Scotland’s exports in sector, absolute value, 2011-16

HMRC regional trade statistics, Scotland’s Export performance monitor (Scotland’s Export Performance Monitor)

Long-term growth in world imports in sector, absolute value, 2008-16

UN COMTRADE

Recent growth in world imports in sector, absolute value, 2011-16

UN COMTRADE

Value if Scotland were to increase world market share by half

HMRC regional trade statistics, Scotland’s Export performance monitor (Scotland’s Export Performance Monitor), UN COMTRADE

Competitor analysis

Total export value gap in sector

Output from the Export Value Gap model

Total export value strength in sector

Output from the Export Value Gap model

Opportunity concentration (% of export value gap in top 5 countries)

Output from the Export Value Gap model

Import growth concentration (% of world import growth coming from top 5 countries)

UN COMTRADE

Table 12: Indicators used in country prioritisation

Indicator

Source

Current exports and market size

Value of Scottish exports to country, 2014-16 average

HMRC regional trade statistics, Scotland’s Export performance monitor (Scotland’s Export Performance Monitor)

Size of country’s import market, 2016

UN COMTRADE

Distance to country

Sector growth potential

Long-term growth in Scotland’s exports to country, absolute value, 2006-16

HMRC regional trade statistics, Scotland’s Export performance monitor (Scotland’s Export Performance Monitor)

Recent growth in Scotland’s exports to country, absolute value, 2011-16

HMRC regional trade statistics, Scotland’s Export performance monitor (Scotland’s Export Performance Monitor)

Recent growth in country’s imports, absolute value, 2011-16

UN COMTRADE

Forecast country total imports, absolute value, 2018-23

IMF forecasts

Long-term population growth, increase in population, 2017-50

World Bank

Competitor analysis

Total export value gap in country

Output from the Export Value Gap model

Total export value strength in country

Output from the Export Value Gap model

Opportunity concentration (% of export value gap in top 5 sectors in country)

Output from the Export Value Gap model

Import growth concentration (% of country’s import growth coming from top 5 sectors)

UN COMTRADE

Country risk and trade barriers

Country risk

Coface, https://www.coface.com/

Country business risk

Coface, https://www.coface.com/

Country simple average applied tariff

WTO

Table 13: Weightings applied in country prioritisation, sensitivity testing

Scottish
exports to
market (2014-
16 average, £m)
Size of import
market (2016,
£m)
Distance to
Country
(miles)
Growth in Scottish exports to
market
Growth of import market [Underperfor
mance] Total
Export Value
Gap (£m)
[Beating
competitors]
Export Value
Strength (£m)
Key sectors
(from
competitor
analysis)
Key sectors for
import growth
(2013-17)
Country risk Country
Business risk
Trade
barriers
Long-term
growth (2006-
16, abs value
£m)
Recent
growth (2011-
16, abs value
£m)
Recent
growth (2012-
16, abs value
£m)
Forecast total
imports (2018-
23, abs value
£m)
Long-term
population
growth (2017-
2050)
(number)
Opportunity
concentration
(% of export
value gap in
top 5 sectors)
Import growth
concentration (%
of world import
growth coming
from top 5
sectors)
Average
tariff 2016
(%)
WEIGHTING 1.1 3 3 2 2 3 3 2 1 3 1 1 1 2 2 3
WEIGHTING 1.2 10 10 5 5 10 10 5 3 10 3 3 3 5 5 10
WEIGHTING 1.3 2 2 1 1 2 2 1 1 2 1 1 1 1 1 2
WEIGHTING 1.4 5 4 2 2 4 3 2 1 5 2 2 1 2 2 4
WEIGHTING 2.1 3 1 2 3 3 1 1 1 3 1 1 1 2 2 3
WEIGHTING 2.2 2 1 2 3 3 3 3 1 2 1 1 3 2 2 2
WEIGHTING 2.3 1 1 2 1 1 1 1 1 3 3 3 1 2 2 2
WEIGHTING 2.4 3 1 2 3 3 1 1 1 3 3 3 3 2 2 2

Table 14: Weightings applied in sector prioritisation, sensitivity testing

Scottish exports
(2014-16
average, £m)
Size of world
import market
(2014-16
average, £m))
Growth in Scottish exports Growth in world imports Value if Scotland
were to increase
world market
share by 50%
(£m)
[Underperforma
nce]
Total Export
Value Gap (£m)
[Beating
competitors]
Export Value
Strength (£m)
Key Countries
(from
competitor
analysis)
Key countries for
import growth
(2013-17)
Long-term
growth (2006-16,
abs value £m)
Recent growth
(2011-16, abs
value £m)
Long-term
growth (2008-16,
abs value £m)
Recent growth
(2011-16, abs
value £m)
Opportunity
concentration (%
of export value
gap in top 5
countries)
Import growth
concentration (%
of world import
growth coming
from top 5
countries)
WEIGHTING 1.1 3 3 2 3 2 3 3 3 1 1 1
WEIGHTING 1.2 10 10 5 10 5 10 10 10 3 3 3
WEIGHTING 1.3 2 2 1 2 1 2 2 2 1 1 1
WEIGHTING 1.4 5 5 3 4 3 4 2 5 2 1 1
WEIGHTING 2.1 3 1 2 3 1 1 1 3 3 2 1
WEIGHTING 2.2 2 1 3 3 3 3 3 2 1 1 3
WEIGHTING 2.3 1 1 1 1 1 1 1 3 2 3 1
WEIGHTING 2.4 3 1 3 3 1 1 3 3 2 3 3

Contact

Email: stefan.hoyte@gov.scot

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