Dutch earnings from international trade
International trade in goods and services is crucial to a small, open economy such as that of the Netherlands. No less than one-third of Dutch GDP is earned from exports of goods and services. Exporting goods and services also generates 2.5 million full-time jobs for the Dutch population, both directly through employment with exporting companies and indirectly at suppliers to those exporters. How much are domestic exports, re-exports and service exports worth, and what is the value of the goods and services that Dutch companies have imported to produce these exports? How much value added and employment does the Netherlands gain from exports and what is the trend shown by these figures? How do value added and employment vary between the different sectors? Which destination countries provide the Netherlands with the highest export earnings and which export destination is associated with the largest number of full-time equivalent jobs?
2.1Key findings
Previous editions of Dutch Trade in Facts and Figures have shown that exports of goods and services are an important source of income for the Dutch economy. In 2019noot1, Dutch exports of goods and services totalled €675.2 billion.noot2 This is nearly €20 billion more than in 2018 – a rise of 3%. Nevertheless, growth continued to slow in 2019 after gross export value rose by 9.3% in 2017 and 6.5% in 2018. Geopolitical uncertainties in 2019, such as those resulting from Brexit and the trade conflict between the United States and China, were responsible for a continuing slowdown in the growth of economic activities in the global economy (OECD, 2019). Dutch companies, which are relatively highly dependent on international trade (see for example Lammertsma & Notten, 2019; Aerts et al., 2020), also feel the effects of such global shocks, both in their trade with those countries and through the national and global value chains with which they are connected. However, re-exports and exports of services did enjoy strong growth of 6.5% and 6.3% respectively. In contrast, domestic goods exports saw a 2.3% decline, which can be mainly attributed to a sharp fall in exports of electrotechnical machinery and equipment (Mares, 2020).
In 2019, the Dutch economy earned more than €271.7 billion in value addednoot3 from exports of goods and services, which was a 4% rise from 2018. Export earnings in 2019 accounted for 33.5% of gross domestic product (GDP) that year. The contribution made by export earnings was therefore approximately one-third of GDP, just as in recent years.
Manufacturing generated the highest value added due to exports (mainly from domestic exports). Specifically, this concerned the food, beverages and tobacco industry, the machinery industry and the chemical industry. After manufacturing, it is the (wholesale) trade sector that earns the most from exports, followed by the business services sector (primarily through exports of services). The composition of value added by sector is therefore virtually identical to that of 2018, with a few key exceptions. Compared to 2018, mining and quarrying earned substantially less in 2019 from exports of goods and services. The strong growth of service exports and re-exports ensured a substantial increase in export earnings from business services and the wholesale trade sector. Manufacturing also earned more from exports in 2019 than a year earlier. The machinery industry and the pharmaceutical industry benefited from a sharp rise in domestic exports, but the electrotechnical industry, the motor vehicle and trailer industry, the chemical industry and the basic metal industry earned considerably less from exports in 2019 than in 2018.
The bulk of the above-mentioned value added came from exports to Germany, followed a long way behind by earnings from exports to the United Kingdom, Belgium, France and the United States. For most export destinations, the Netherlands earned more from exports of goods than from exports of services. Important exceptions to this pattern are exports to the United States, the United Kingdom, Switzerland and Ireland, where exports of services contributed a major share of Dutch earnings.
In 2019, the Netherlands imported goods and services worth some €590.7 billion (a rise of 3% relative to the previous year). The bulk of these imports, some 68%, concerned imports used to produce Dutch exports. This can refer to imports for re-export or imports that are processed further to produce goods and services for other countries. In 2019, less than a third of imported goods and services were destined for domestic final demand (mainly domestic consumption and investments).
In 2019, nearly 2.5 million full-time equivalent jobs in the Netherlands were directly or indirectly connected to exports of goods and services, which represents nearly 32% of total Dutch labour volume. As in 2018, exports by the business services sector provided the most employment, followed by manufacturing, trade and transport, and information services. Of the total of 2.5 million FTEs, 1.5 million were in sectors that export goods and services, and 1.0 million with suppliers to the exporting companies. Driven by the strong increase in exports of services, direct employment as a result of exports grew by 4.5% – or 65,000 FTEs – compared to 2018. Indirect employment due to exports remained virtually unchanged relative to 2018.
2.2Contribution of exports to GDP
In 2019, the Netherlands exported €675.2 billion worth of goods and services. Figure 2.2.1 shows that this gross export value is the sum of exports of goods produced in the Netherlands, re-exports and exports of services. Re-exports consist of goods imported by the Netherlands and then re-exported virtually without processing, with the goods having been under Dutch ownership. Compared to 2018, gross export value grew by €19.7 billion, which was a rise of 3%. This means that growth slowed further in 2019, as gross export value increased by 9.3% in 2017 and 6.5% in 2018.
| Domestic exports | Re-exports | Service exports | |
|---|---|---|---|
| 2019 | 232.5 | 261.5 | 181.2 |
| 2018 | 239.3 | 245.6 | 170.5 |
| 2017 | 227.5 | 233.3 | 154.8 |
| 2016 | 209.5 | 211.4 | 142.5 |
| 2015 | 212.1 | 206.3 | 152 |
Re-exports have highest gross export value
The bulk of gross export value came from exports of goods, €232.5 billion of which consisted of domestic exports and €261.5 billion of re-exports.noot4 Exports of services represented a smaller share, with a value of €181.2 billion.noot5 The value of re-exports grew by 6.5% and that of service exports rose by 6.3%, while the gross export value of domestic exports shrank by 2.3%. According to Mares (2020), this was mainly because exports of electrotechnical machinery and equipment (for example consumer electronics) were lower than in 2018. However, there was an increase in Dutch exports of machinery and equipment, and chemical and petroleum products in 2019. Re-exports also experienced the strongest medium-term growth. Between 2015 and 2019, re-exports increased by an average of 6.1% annually, exports of services by an average of 4.5% per year and domestic goods exports by 2.3% on average.
Service exports are most lucrative
The Netherlands plays an active part in global value chains, which is reflected in a high degree of dependence on inputs from abroad in order to produce its own goods and services for export (see for example Lammertsma & Notten, 2019; Aerts et al., 2020). Examples are raw materials and semi-finished goods that are incorporated into Dutch export products, the imports needed for re-exports, and foreign service providers that facilitate Dutch exports. To determine what the Netherlands earns from exports, consumption of imported goods and services required must be deducted from gross export value. On average, the Netherlands earned 40 cents for every euro of exports of goods and services in 2019. However, earnings per euro of exports vary significantly from one export category to another (Figure 2.2.2). In 2019, the Netherlands earned the most for each euro – around 62 cents – from exports of services. For domestic exports, the figure was 54 cents per euro and for re-exports it was 13 cents. For re-exports, in addition to the imported goods (which leave the country virtually unchanged), the imported goods and services that were used to facilitate re-exports also have to be deducted from the re-export value in order to calculate earnings per euro of exports. Earnings per euro of exports remained relatively stable over the years for all types of exports.
| 2015 | 2016 | 2017 | 2018 | 2019 | |
|---|---|---|---|---|---|
| Domestic exports | 52.5 | 53.3 | 52.1 | 51.3 | 53.6 |
| Re-exports | 13.7 | 14.1 | 13.9 | 13.5 | 13.3 |
| Service exports | 64.1 | 65.3 | 64.2 | 61.8 | 61.9 |
Earnings from exports stable over recent years at around one-third of GDP
After deduction of processed imported goods and services, Dutch exports of goods and services amounted to €271.7 billion in 2019, up 4% from 2018 (Figure 2.2.3). Exports of goods and services therefore accounted for 33.5% of GDP (Figure 2.2.4). In recent years, the share of goods and service exports as a proportion of GDP has remained fairly constant at around one-third (Lammertsma & Notten, 2019; Aerts et al., 2020). According to Figure 2.2.3, domestic goods exports brought in the most revenue at €124.7 billion, followed by exports of services at €112.1 billion and re-exports at €34.8 billion.
| Domestic exports | Re-exports | Service exports | Domestic expenditure | |
|---|---|---|---|---|
| 2015 | 111.4 | 28.3 | 97.5 | 452.8 |
| 2016 | 111.7 | 29.7 | 93 | 473.9 |
| 2017 | 118.5 | 32.5 | 99.3 | 487.8 |
| 2018 | 122.7 | 33.1 | 105.4 | 512.8 |
| 2019 | 124.7 | 34.8 | 112.1 | 538.6 |
| bla | Share |
|---|---|
| Domestic exports | 15.4 |
| Re-exports | 4.3 |
| Service exports | 13.8 |
| Domestic expenditure | 66.5 |
Manufacturing earns the most from exports
Earnings from exports vary from one sector to another. Figure 2.2.5 shows that manufacturing generated the highest value added, at €65.3 billion, as a result of exports. The major part of this value added came from domestic goods exports. By exporting self-produced goods or by supplying industries that subsequently export domestically produced goods, manufacturing created €56.4 billion of value added. Manufacturing earned an additional €7.1 billion from exporting or contributing to exports of services, including support services. Most of the value added resulting from manufacturing exports is created by the food, beverages and tobacco industry (€12.6 billion), followed by the chemical industry (€11.0 billion) and the machinery industry (€10.5 billion) (Figure 2.2.6). Manufacturing industries that generate more value added through domestic expenditure (for example purchases by Dutch consumers) than through exports are the building materials industry, the furniture industry and the timber, paper and printing industry.
Manufacturing earned around €2.3 billion more from exports in 2019 than in 2018, mainly through domestic goods exports. This was primarily due to higher earnings in the machinery industry (€0.9 billion more than in 2018) and the pharmaceutical industry (€0.4 billion more than in 2018). In contrast, the electrotechnical industry, the motor vehicle and trailer industry, the chemical industry and the basic metal industry earned less from exports in 2019 than in 2018. This may be related to the sharp contraction in German manufacturing in 2019. German manufacturing declined because it is strongly integrated into international production chains which, according to OECD figures, are also supplied by the above-mentioned manufacturing industries that experienced declining export earnings in 2019 (CBS, 2019a; Cremers et al., 2020).
Nearly three-quarters of value added from manufacturing is due to exports
No less than 74% of total value added from manufacturing came from exports of goods and services. Only mining and quarrying (85%), and agriculture, forestry and fishing (78%) create relatively more value added as a result of exports. Exports by companies active in mining and quarrying earned €3.8 billion in 2019 and companies in agriculture, forestry and fishing earned €12.5 billion. The export earnings of these two sectors are also dominated by domestic exports.
Half of value added in trade is from exports
After manufacturing, the trade sector (mainly the wholesale trade) generates the most value added from exports, at €50.6 billion. The wholesale trade sector is active not only as an exporter, but also as an important supplier for exporting companies in the supply chains of other industries. It is also the only sector in which re-exports play a major role in its total earnings. Exports of services play a key role in the export earnings of business services, transportation and storage (transport and logistics), and information and communication.
Business services and wholesale trade are drivers of growth
The composition of value added by sector in 2019 (Figure 2.2.5) appears to be largely in line with the picture from 2018 (Aerts et al., 2020), with a few exceptions. For example, mining and quarrying earned over €1.7 billion less (–27%) from exports of goods and services than in 2018 due to the scaling back of natural gas extraction (CBS, 2019b; CBS, 2020). This involved a sharp fall in the value added associated with domestic goods exports. Driven by the strong increase in exports of services, the business services sector earned over €3.1 billion more in 2019 than it did a year earlier. Furthermore, service exports and re-exports proved to be the drivers of the growth in earnings from exports for wholesale trade. This sector earned over €2.6 billion more from exports in 2019 than in 2018.
Accommodation and food services, government, construction and financial services earn more from domestic market
Sectors such as accommodation and food services, construction, financial services and real estate focus mainly on the domestic market. In consequence, the share of exports in the total value added of these industries is lower. Public administration, education, healthcare and culture and recreation are also primarily national matters, so there is little dependence on foreign demand.
| Bedrijfstak | Domestic exports | Re-exports | Service exports | Domestic expenditure |
|---|---|---|---|---|
| Agriculture, forestry and fishing |
9.8 | 0.2 | 0.4 | 2.9 |
| Mining and quarrying | 3.4 | 0.1 | 1.1 | 0.8 |
| Manufacturing | 56.4 | 1.8 | 7.1 | 23.1 |
| Energy supply, water companies and waste management |
3.5 | 0.3 | 1 | 9.1 |
| Construction | 0.8 | 0.2 | 2.6 | 32.1 |
| Trade | 20.9 | 20.4 | 9.3 | 49.2 |
| Transport and storage | 4.5 | 2.5 | 16.5 | 10.3 |
| Accommodation and food services |
0.4 | 0.1 | 3.2 | 11.7 |
| Information and communication |
2.3 | 0.9 | 15.9 | 17.3 |
| Financial services and real estate activities |
4.2 | 1.2 | 9.9 | 83.8 |
| Business services | 14.6 | 4.8 | 36.5 | 56.1 |
| Public administration, education and health care |
1.1 | 0.3 | 2.3 | 148.5 |
| Culture, recreation and other services |
0.5 | 0.1 | 2 | 14.3 |
| Domestic exports | Re-exports | Service exports | Domestic expenditure | |
|---|---|---|---|---|
| Food, beverages and tobacco industry | 11.7 | 0.2 | 0.7 | 4.6 |
| Textiles, clothing and leather industry | 0.8 | 0 | 0 | 0.3 |
| Timber, paper and graphic industry | 2.2 | 0.1 | 0.5 | 1.8 |
| Petroleum industry | 1.1 | 0 | 0.1 | 0.2 |
| Chemical industry | 9.7 | 0.1 | 1.2 | 0.8 |
| Pharmaceutical industry | 2.2 | 0.1 | 0.2 | 0.5 |
| Rubber and plastic products industry | 2.1 | 0 | 0.2 | 0.8 |
| Building materials industry | 0.7 | 0 | 0.1 | 1.5 |
| Basic metal industry | 1.6 | 0 | 0.1 | 0.4 |
| Metal products industry | 3.5 | 0.2 | 0.8 | 3.3 |
| Electrotechnical industry | 3.3 | 0.4 | 0.4 | 0.5 |
| Electrical appliances industry | 1.7 | 0.2 | 0.5 | 0.8 |
| Machinery industry | 9.7 | 0.1 | 0.7 | 2.4 |
| Motor vehicle and trailer industry | 2.1 | 0 | 0.1 | 0.4 |
| Other transport equipment industry | 1.1 | 0 | 0.1 | 0.3 |
| Furniture industry | 0.4 | 0 | 0 | 1 |
| Other manufacturing and repairs | 2.5 | 0.2 | 1.5 | 3.7 |
Exports to Germany provide the highest export earnings
Exports of goods and services to Germany earned the Netherlands more than €51.2 billion in 2019 (Figure 2.2.7), which accounted for 6.3% of GDP. Germany is the most important export partner, not only in terms of export value, but also as regards export earnings. The other countries in the top five are the United Kingdom (€28.0 billion, or 3.5% of GDP), Belgium (€24.3 billion, or 3.0%), France (€18.3 billion, or 2.3%) and the United States (€17.0 billion, or 2.1%). At 17%, the share of re-exports in earnings from exports to Germany is relatively large. Examples are consumer electronics, toys and clothing that a Dutch company imports from China and subsequently sells on to Germany. The Netherlands is an important pivot point for goods imported from Asia and America that reach the European hinterland as re-exports (Franssen et al., 2020). This can be seen in the share of re-exports in Dutch exports to France, Spain, Italy and Poland, which fluctuates around 18–19% of total Dutch export earnings for those countries. For more distant destinations, such as the United States and China, the share of re-exports in Dutch export earnings is much smaller.
| Domestic exports | Re-exports | Service exports | |
|---|---|---|---|
| Germany | 23.5 | 8.8 | 18.9 |
| United Kingdom | 8.9 | 3.1 | 16.0 |
| Belgium | 12.2 | 3.5 | 8.6 |
| France | 8.4 | 3.4 | 6.5 |
| United States | 7.3 | 1.0 | 8.7 |
| Italy | 4.5 | 1.6 | 3.1 |
| Spain | 3.2 | 1.4 | 2.8 |
| China | 4.6 | 0.4 | 1.4 |
| Switzerland | 1.6 | 0.5 | 3.7 |
| Poland | 2.7 | 1.1 | 1.8 |
Also in the top 10 of most important destinations measured by export earnings are Italy, Spain, China, Switzerland and Poland. While total export earnings increased by 2.5% on average between 2015 and 2019, earnings from exports to China grew by 6.7% annually on average, growth in relation to Poland was 6.4% and for Spain it was 6.2%. In contrast, earnings from exports to Switzerland decreased by 6.2% annually on average. This was caused by a decline in service exports, which in turn was driven by a steep drop in the fees received for the use of intellectual property rights.
Services crucial in export earnings from the UK, the US, Ireland and Switzerland
Dutch exports of goods are worth more than its exports of services to most countries. This pattern is also visible in export earnings: for most countries, these are higher for goods exports than for service exports. Important exceptions to this pattern are earnings from exports to the United Kingdom, the United States, Switzerland and Ireland. For the United Kingdom, 57% of export earnings came from exports of services, such as business services or transport services. The corresponding figure for the United States was 51% and for Switzerland it was 64%. Ireland, which is just outside the top 10, is the leader, as 72% of the €4.7 billion in Dutch export earnings from that country is from exports of services. These earnings are mainly related to payments received for the use of intellectual property rights (royalties).
A detailed look at the contribution of exports to GDP growth
As approximately one-third of gross domestic product comes from exports of goods and services, exports are frequently referred to as the engine of growth of the Dutch economy. Figure 2.2.8 shows the contributions to growth made by the various export categories to GDP volume changes. In 2019, the Dutch economy grew by 1.7%. Exports of goods and services contributed 0.7 percentage point, while the remaining 1 percentage point resulted from domestic expenditure, such as household consumption, government spending and investments. The contribution of exports to GDP growth came mainly from exports of services (0.6 percentage point). Re-exports accounted for 0.1 percentage point of GDP volume growth in 2019. Domestic exports did not contribute either positively or negatively to GDP volume growth.
Contribution of exports to GDP volume growth: the international method versus the import-adjusted method
GDP according to final expenditures equals the sum of final consumption, investments and exports of goods and services minus imports of goods and services (trade balance). To determine the contribution of the trade balance to GDP volume growth, the contribution of imports is subtracted from that of exports (this is the internationally agreed method for compiling National Accounts). CBS intends to publish a StatLine table showing the contribution of final expenditure categories to GDP volume growth according to this international method. In 2019, the trade balance made a negative contribution to economic growth (Mares, 2020). However, the internationally agreed method underestimates the contribution of exports to GDP and overestimates the contribution of domestic consumption. This is because the internationally agreed method does not take into account the fact that goods and services are imported for the purpose of domestic consumption. To gain a more accurate picture of the contribution to growth by type of export, this chapter presents figures on the contribution to GDP volume growth in which imports are allocated to all final expenditure categories. This is done using input-output analysis according to the method developed by Kranendonk and Verbruggen (2008).
With the exception of 2017, it appears that exports of goods and services between 2016 and 2019 contributed less to the volume growth of GDP than did domestic expenditures. Of the three types of exports, service exports made the greatest contribution to export growth, except in 2016, when exports of services contracted strongly and consequently had a negative impact on economic growth. The contribution of service exports was driven by exports of business services and computer services. It is striking that the contribution made by domestic goods exports has declined over recent years. This can be attributed mainly to decreasing natural gas exports due to the scaling back of natural gas extraction. The positive contribution of re-exports has also slowed over the last few years.
| jaar | GDP growth | Domestic expenditure | Service exports | Re-exports | Domestic exports |
|---|---|---|---|---|---|
| 2016 | 2,2 | 2,2 | -0,7 | 0,2 | 0,5 |
| 2017 | 2,9 | 1,2 | 0,8 | 0,3 | 0,6 |
| 2018 | 2,4 | 1,4 | 0,6 | 0,1 | 0,3 |
| 2019 | 1,7 | 1 | 0,6 | 0,1 | 0 |
2.3The importance of imports of goods and services
Increasing imports ultimately destined for export
Imports of goods and services amounted to €590.7 billion in 2019 (Figure 2.3.1). Imports of goods and services experienced similar growth to exports at 3%. Around 68% of imports of goods and services in 2019, worth €403.5 billion, were intended for exports of goods and services, either as imports for re-export or as imported raw materials, semi-finished goods and support services incorporated into goods and service exports. In 2015, this share was 64%. Of the imports used for exports, €213.7 billion were imports for re-export.noot6
Nearly €190 billion of imports of goods and services were intended for domestic expenditure in 2019: €95.6 billion for household consumption, €72.0 billion for investments and €19.6 billion for government consumption.
| Domestic exports | Re-exports | Service exports | Domestic expenditure | |
|---|---|---|---|---|
| 2019 | 107.8 | 226.6 | 69.1 | 187.2 |
| 2018 | 116.6 | 212.5 | 65.2 | 179.6 |
| 2017 | 109 | 200.8 | 55.5 | 170.9 |
| 2016 | 97.9 | 181.6 | 49.4 | 162.1 |
| 2015 | 100.7 | 178 | 54.5 | 185.4 |
Figure 2.3.2 shows the import content per export category, which is the share of imported goods and services in the export value. This indicator is also known as a vertical specialisation measurement. The higher the import content, the higher the degree of integration in global value chains (Hummels et al., 2001). For total exports of goods and services in 2019, the import content was 59.8%; in 2015, it was 1.4 percentage points lower. Exports of services require the smallest amount of imports – 38.1% of export value – but this share is increasing, as it was 35.9% in 2015. In 2019, 46.4% of domestic exports consisted of processed imported goods and services – a drop of 2.3 percentage points from 2018. For re-exports, which make up a large share of total export value, the import content was 86.7%. The import content of domestic spending was 25.8% in 2019, with the import content of household spending at 27.0%, government spending at 9.9% and investments at 41.8%. Chapter 6 of this publication discusses the use of imports in more detail.
| 2015 | 2018 | 2019 | |
|---|---|---|---|
| Domestic exports | 47.5 | 48.7 | 46.4 |
| Re-exports | 86.3 | 86.5 | 86.7 |
| Service exports | 35.9 | 38.2 | 38.1 |
2.4Export-induced employment
A third of employment in the Netherlands is linked to exports
Exports of goods and services create jobs for inhabitants of the Netherlands. These jobs can be subdivided into those that are directly linked to exports, for example in the exporting sector itself, and indirect jobs with suppliers to exporters. Examples are the cleaning crew that works at an exporting company (indirect employment) and the lab technician who works for the exporting company itself (direct employment). The infographic below shows that exports of goods and services provide some 2.5 million direct and indirect full-time equivalent jobs (FTE) in the Netherlands.noot7 Around 32% of total employment in the Netherlands can therefore be attributed to exports. Domestic goods exports accounted for 14% of total employment in the Netherlands in 2019, exports of services provided the same percentage of jobs, while re-exports were responsible for just over 4%. Figure 2.4.1 shows for 2019 how the 2.5 million full-time equivalent jobs are provided by the various types of exports and the extent to which direct or indirect jobs are involved. If we compare 2019 with 2015, we can see a rise in all types of jobs, except for indirect employment associated with domestic exports and indirect employment due to re-exports, which both show a slight decline. The largest rise is in direct employment associated with exports of services, which reflects the continuing shift towards services in the Dutch economy.
Most direct employment provided by exports of services
In 2019, exports of goods and services generated 1.5 million FTEs of direct employment. Of this total, exports of services provided the largest number of jobs – around 709,000. Domestic exports accounted for around 577,000 FTEs and re-exports accounted for some 201,000 jobs. Exports of services not only provided the largest number of direct jobs in 2019, but this area of employment also grew most quickly, increasing by more than 6% compared to 2018. Direct employment as a result of domestic exports and re-exports increased somewhat less quickly in 2019, with a rise of 3%.
Most indirect employment generated by domestic goods exports
In addition to direct jobs, 974,000 FTEs are indirectly involved in the process of producing goods and providing services for exports. Examples are employment at suppliers, such as agriculture; with companies that produce packaging materials; or at firms that provide services such as cleaning, job placement or internet services. Domestic goods exports generated the most indirect jobs – 492,000 FTEs in 2019 – representing more than half of total indirect employment. Exports of services accounted for 380,000 indirect jobs and re-exports for about 102,000 full-time equivalent jobs. With 780,000 FTEs, service industries accounted for the bulk of indirect employment, due to exports. Most indirect employment was to be found with temporary employment agencies and job placement services, legal and management consulting, and companies active in wholesale trade.
Exports create most employment in business services
In particular sectors, a large share of employment is associated with exports, while other sectors depend very little on exports for employment. Exports generated most employment in business services. The manufacturing, trade, transportation and storage, and information and communication sectors also benefit from exports of goods and services. Agriculture and manufacturing are most dependent on exports for employment in relative terms. That is mainly because these industries are themselves active in exports. Business services depend on exports for slightly less than half of their employment, but the export-induced employment is mostly indirect, meaning that these jobs exist to support other exporting sectors. In contrast, public administration, education, healthcare and the cultural and recreational sectors have a low dependence on exports for employment.
| Direct employment due to exports | Indirect employment due to exports | Employment due to domestic expenditure | |
|---|---|---|---|
| Agriculture, forestry and fishing | 102 | 34 | 39 |
| Mining and quarrying | 6 | 1 | 1 |
| Manufacturing | 447 | 38 | 257 |
| Energy supply, water companies and waste management | 7 | 14 | 39 |
| Construction | 25 | 23 | 442 |
| Trade | 327 | 100 | 693 |
| Transport and storage | 186 | 45 | 127 |
| Accommodation and food services | 50 | 21 | 233 |
| Information and communication | 129 | 36 | 135 |
| Financial services, real estate activities | 24 | 25 | 205 |
| Business services | 294 | 435 | 848 |
| Public administration, education and health care | 14 | 26 | 1958 |
| Culture, recreation and other services | 25 | 26 | 301 |
Most export-induced employment due to Germany
The number of full-time equivalent jobs in the Netherlands that are linked to exports follow the same pattern as export earnings. Here too, the top three countries are Germany (472,000 FTEs), followed by the United Kingdom (264,000 FTEs) and Belgium (216,000 FTEs). The same countries also make up the top 10, except that Switzerland is number 9 for value added and Poland is number 10, while for employment, Poland is number 9 and Switzerland number 10. Germany, France, Spain, Italy and Poland have a significant role in employment due to re-exports. In the case of destinations where domestic exports play a relatively large part in export earnings, a relatively high level of employment is generated due to this type of exports, as with exports to Belgium, Italy and Poland, but primarily due to exports to China. Employment due to service exports is relatively high in the case of export destinations such as the United Kingdom, the United States and, especially, Switzerland.
| Domestic exports | Re-exports | Service exports | |
|---|---|---|---|
| Germany | 204 | 77 | 192 |
| United Kingdom | 81 | 27 | 156 |
| Belgium | 100 | 31 | 85 |
| France | 74 | 29 | 63 |
| United States | 64 | 9 | 80 |
| Italy | 37 | 14 | 29 |
| Spain | 28 | 12 | 26 |
| China | 41 | 3 | 14 |
| Poland | 25 | 10 | 18 |
| Switzerland | 14 | 4 | 33 |
2.5References
References
Aerts, N., Notten, T., Prenen, L., Rooyakkers, J. & Wong, K. F. (2020). Nederlandse verdiensten aan internationale handel. In: M. Jaarsma & A. Lammertsma (Red.), Dutch Trade in Facts and Figures, 2020. Statistics Netherlands: The Hague/Heerlen/Bonaire.
CBS (2015). De in- en uitvoercijfers van het CBS. Statistics Netherlands: The Hague/Heerlen/Bonaire.
CBS (2019a). Netherlands earns €0.5 billion in car exports to the US. Statistics Netherlands: The Hague/Heerlen/Bonaire.
CBS (2019b). Natural gas trade deficit for the first time in 2018. Statistics Netherlands: The Hague/Heerlen/Bonaire.
CBS (2020). Less coal and more natural gas consumption in 2019. Statistics Netherlands: The Hague/Heerlen/Bonaire.
Cremers, D., Notten, T., Prenen, L., Rud, I. & Wong, K. F. (2020). Nederlands-Duitse handel in mondiale waardeketens. In: S. Creemers, M. Jaarsma & A. Lammertsma (Red.), Internationalisation Monitor 2020, first quarter: Germany. Statistics Netherlands: The Hague/Heerlen/Bonaire.
Franssen, L., Lemmers, O., Prenen, L. & Wong, K. F. (2020). Het Verenigd Koninkrijk afhankelijker van Europese Unie dan eerder gedacht. Economische Statistische Berichten, 105(4786), 268–271.
Hummels, D., Ishi, J. & Yi, K.-M. (2001). The nature and growth of vertical specialization in world trade. Journal of International Economics, 54(1), 75–96.
Kranendonk, H. & Verbruggen, J. (2008). Decomposition of GDP Growth in Some European Countries and the United States. The Economist, 156(3), 295–306.
Lammertsma, A. & Notten, T. (2019). Dutch earnings from international trade. In: M. Jaarsma & A. Lammertsma (Red.), Dutch Trade in Facts and Figures 2019. Statistics Netherlands: The Hague/Heerlen/Bonaire.
Mares, A. (2020). De Nederlandse economie in 2019. Statistics Netherlands: The Hague/Heerlen/Bonaire.
OECD (2019). Economic Outlook: Weak trade and investment threaten long-term growth.
Noten
The figures for 2015, 2016, 2017 and 2018 are final, while those for 2019 are provisional. The 2019 figures in the corona box for value added and employment resulting from exports are final and therefore deviate from the 2019 figures that are presented in this chapter.
The figures presented in this chapter are based on figures of the National Accounts. In Chapters 4 and 5, figures from the International Trade in Goods source statistics are used. The source statistics use different concepts from those of the National Accounts. For example, source statistics are based on cross-border trade in goods, while economic ownership is leading for the National Accounts. Integration into the National Accounts results in additional differences. In consequence, the figures in this chapter cannot be compared directly with those in Chapters 4 and 5. For more information on these differences, see ‘De in- en uitvoercijfers van het CBS’ (CBS, 2015).
When we refer in this chapter to value added related to exports, we mean the sum of value added and the balance of product-related taxes and subsidies linked to exports. This is slightly broader than the usual value added created by Dutch industries, and it has the advantage of enabling comparison with GDP.
Elsewhere in this publication, for example in Chapters 4 and 5, it is indicated that re-exports account for slightly less than half of goods exports. The figures presented in this chapter are based on figures of the National Accounts. The ownership criterion is central to the National Accounts, meaning that certain transactions abroad can be counted as Dutch imports and exports even if the traded goods have not physically been in the Netherlands. Partly because of this, the volume of re-exports in this chapter and in Chapter 6 is larger than the volume of domestic exports.
The figures referred to in this chapter on exports of services are based on the National Accounts. Chapter 4 of this publication also provides information on service exports, from the perspective of the source statistics. These two figures differ. On the one hand there are inconsistencies due to the way in which the National Accounts and the source statistics have to deal with Special Purpose Entities. On the other hand the National Accounts compare service trade data with other source statistics, and any inconsistencies between the sources can lead to adjustments to the source data in order to provide a consistent picture of the economy as a whole. The focus on continuity in the National Accounts also leads to divergences in level between the source statistics and the National Accounts. This will be reviewed in a revision year.
In total, €226.6 billion of imports were used to produce re-exports. The amount of €213.7 billion was the value of the imported goods (which leave the country virtually unchanged) and the remaining €12.9 billion of imports consisted of goods and services used to facilitate re-exports.
When determining labour volume in full-time equivalents (FTEs) over a period, the start and end date of a job as well as the weekly working hours are taken into account. Because many people work part-time, some work only part of the year and some have several jobs, the number of individual jobs is higher than the number in FTEs.