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Chamberlin, Graeme --- "Dark Matter. Does it Matter?" [2009] ELECD 391; in Yueh, Linda (ed), "The Law and Economics of Globalisation" (Edward Elgar Publishing, 2009)

Book Title: The Law and Economics of Globalisation

Editor(s): Yueh, Linda

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781845421953

Section: Chapter 9

Section Title: Dark Matter. Does it Matter?

Author(s): Chamberlin, Graeme

Number of pages: 36

Extract:

9. Dark matter. Does it matter?
Graeme Chamberlin*

INTRODUCTION
Waves of globalisation always present challenges to statisticians in their
attempts to accurately measure the economy. First, in the post-war period
there was strong growth in international trade. Second, economies not
only became more open to goods and services but also to the trade in
financial assets as the world's financial markets became increasingly inte-
grated. This chapter outlines a potential new challenge for statisticians
from globalisation.
Firm spending on intangibles relative to traditional machinery is argu-
ably becoming more important in developed economies. Intangibles in
themselves are difficult to measure, but if it is accepted that they can flow
freely across borders it makes the job even harder for official statisticians.
Dark matter refers to the unseen exports of these intangibles which could
have important effects on international investment income flows and the
international investment position of countries.
If dark matter is important, and therefore something statisticians should
immediately concern themselves with, it suggests two things. First, that the
source of this dark matter, intangibles, are becoming more widespread.
Second, that international trade in these intangibles has an important
effect on an economy's external position.
The first half of this chapter, in reference to the US economy, suggests
that dark matter does matter. However, in the second half the case against
is made. First in looking for whether dark matter really exists and second in
suggesting that certain key parts of intangible spending are not so important
...