Page 272 - Special Topic Session (STS) - Volume 4

STS587 Hui W. et al.

The accuracy and relevance of GDP measures in a
digital economy
2,*
1
Hui Wei ; Yafei Wang
1 Tsinghua University, Beijing, China
2 Beijing Normal University, Beijing, China

Abstract
Digital economy has raised has raised questions about the conceptual basis of
GDP and output, and whether current compilation methods are adequate to
capture them. To this end, this paper discusses essential aspects for the
measurement: (1) key features and dynamic natures of GDP to provide a basis
for further account for the missing output in the digital economy; (2)a
consistent and complete concept is well defined to satisfy the gap of
digitalisation definition; (3) difficulties in measurement areas including quality
changes ta unprecedented pace, free content and services, nonmarket
production, new platforms connecting supply and demand, and globalization
and impact on national accounts. In addition, the phenomenon of productivity
slowdown is given major explanations: (1) measurement errors: services in
particular;(2) low investment both in physical and human capital; (3) wide
disparities in productivity between leaders and laggards; and (4) digital
technologies are not so powerful as previous technological advances. Finally,
this paper represents some research questions for measurement in the digital
economy: (1) Is SNA still relevant for the changed economic environments; (2)
What are the challenges for capturing changes in the economy using SNA? (3)
Has mismeasurement problem worsen over time; (4) What are the promising
ways moving forward.

Keywords
Digitalisation; Gross Domestic Product; Economic Measurement

1. Introduction
Digital economy refers to an economy that is based on digital computing
technologies, usually people perceiving this as conducting business through
markets based on the internet and getting benefits of the digitalisation in
everyday life. However, the digital economy increasingly intertwining with the
traditional economy, has created some new measurement challenges for
macroeconomic statistics and may have exacerbated some older ones. This is
known as “mismeasurement hypothesis”.
There are significant concerns that these production and benefits of
digitalization may not be appropriately reflected in official statistics. Statistical
agencies are typically unable to measure the output that result from the

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