Research On Contribution Of The Internet On The Estimation Of China's GDP

Since 1980s, the development speed, depth and breadth of the Internet beyond people's imagination. The Internet is changing people's way of production and life. With the advent of economic globalization, the Internet will become the main driving force of economic development.Paper is divided into four parts. The first part focuses on the meaning, origin, development of the Internet, and Internet features. The second part analyzes the status of Internet development in China from the following four aspects basic resources, scale of Internet users, network applications and the economies scale of Internet. At the beginning of the third part,it introduces modeling idear and then builds comprehensive index of Internet with basic resources of the Internet,last but not least it estimates contribution of the Internet on China's GDP with the classic Cobb-Douglas production function and the theory of econometric methods. The fourth part identifies the main issues and put forward the idea of development of the Internet in China by combining the Internet development status in China and the contribution of the China's GDP.It finds that the contribution of Internet to China's GDP is lower than assets investment and labor contributions to the GDP.And then it put forward to enhance network infrastructure facilities; to develop the next generation of Internet technology; promote internet applications; to strengthen international exchanges and cooperation and so on. Hopeing to provide an idea in order to accelerating the development of China internet.