Must Read

PrintPrint EmailEmail ShareShare CiteCite
Style:MLAAPAChicagoClose

loading...

McKinsey Global Institute: The Net's Sweeping Impact on Growth, Jobs, and Prosperity

May 2011

Share

Research prepared by the McKinsey Global Institute and McKinsey's Technology, Media and Telecommunications practice offers the first quantitative assessment of the impact of the Internet on GDP and growth, while also considering the most relevant tools governments and businesses can use to get the most benefit from the digital transformation.

The Internet is a vast mosaic of economic activity, ranging from millions of daily online transactions and communications to smartphone downloads of TV shows. But little is known about how the Web in its entirety contributes to global growth, productivity, and employment. New McKinsey research into the Internet economies of the G-8 nations as well as Brazil, China, and India, South Korea, and Sweden finds that the Web accounts for a significant and growing portion of global GDP. Indeed, if measured as a sector, Internet-related consumption and expenditure is now bigger than agriculture or energy. On average, the Internet contributes 3.4 percent to GDP in the 13 countries covered by the researchóan amount the size of Spain or Canada in terms of GDP, and growing at a faster rate than that of Brazil.

Research prepared by the McKinsey Global Institute and McKinsey's Technology, Media and Telecommunications practice as part of a knowledge partnership with the e-G8 Forum, offers the first quantitative assessment of the impact of the Internet on GDP and growth, while also considering the most relevant tools governments and businesses can use to get the most benefit from the digital transformation. To assess the Internet's contribution to the global economy, the report analyzes two primary sources of value: consumption and supply. The report draws on a macroeconomic approach used in national accounts to calculate the contribution of GDP; a statistical econometric approach; and a microeconomic approach, analyzing the results of a survey of 4,800 small and medium-sized enterprises in a number of different countries.

Full Text of Document

More on This Topic

Op-Ed

GPS and the Politics of Scarce Resources

Author: Frank G. Klotz
National Interest

Frank G. Klotz argues that allocating the radio-frequency spectrum can be an untidy process—and have implications for both national security...