Alternative measures of income

It is a stylised fact that intangible capital plays an increasingly important role in growth and productivity. But less well known are the potential measurement challenges these bring, in particular with regards to whether the underlying use of the intangible is recorded in the accounts as generating cross-border services flows – which increase gross domestic product (GDP) – or cross-border flows of primary income, recorded in gross national income (GNI). This matters for labour productivity measures. In this regard, productivity measures based on GNI are able to provide a complementary view that may shed light on possible measurement distortions.