NTIA Measures GDP Impact of Cross-Border Data Flows

The Commerce Department is studying economic impacts of cross-border data flows driven by the internet, NTIA said in a Friday blog post. NTIA and the Economics Statistics Administration also released a report, Measuring the Value of Cross-Border Data Flows. “These data flows are happening and we know they are having an increasingly significant effect on the economy,” NTIA said. “Solid statistical foundations for measuring the economic impact of cross-border data flows do not currently exist.” The report highlights ongoing efforts to measure data flows, including a Bureau of Economic Analysis project to refine measurement of services that can be traded using information and communication technologies. BEA and NTIA also started a three-year study to define industries and commodities comprising the digital economy so it can estimate contribution to Gross Domestic Product. Next steps for the department: (1) Improve coverage and quality of government statistics on the service sector; (2) develop standard nomenclature and definitions for concepts on cross-border data flows; (3) better understand how firms use data flows and their economic value; (4) develop improved and consistent macro-economic statistics to measure the value of the data flows and the digital economy, including impact to GDP; (5) continue dialog between the department and industry to facilitate data sharing; and (6) continue collaboration between Commerce and international organizations to spread the metrics.