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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…

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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.