Services Trade by Enterprise Characteristics 2023

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 2023, exporting €326bn (82%) and importing €323bn (83%) of total services. The remaining €73bn (18%) of service exports and €64bn (17%) of service imports were provided by domestic enterprises. See figure 5.1.

Foreign controlled enterprises in the Information and Communications sector imported €169bn (44%) of total services, with 5% imported from EU and 39% imported from non-EU countries, of which 2% were imported from UK and 29% 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 €103bn (26%) of total services, with 5% imported from EU and 22% imported from non-EU countries. Foreign enterprises in the Financial & Insurance and in other sectors imported €27bn and €24bn (7% and 6%) of service respectively.  

Domestic enterprises in the Manufacturing sector and the Financial & Insurance sector imported €23bn (6%) and €18bn (5%) of total services respectively while domestic enterprises in other sectors imported another €24bn (6%) of total services. See figure 5.3 and table 5.2.

All transport and travel services exports (€11bn) and 83% (€18bn) of financial service exports were provided by domestic enterprises in 2023. All computer services exports (€228bn) and all repair and processing exports (€3bn) were provided by foreign controlled enterprises. 

Foreign controlled enterprises also accounted for 80% (€55bn) of business services exports.  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% (€13bn) of computer services imports, 97% (€140bn) of Royalty imports and 95% (€138bn) 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.