Japan Incorporates Homestay into GDP Accounting

2019/9/2 8:42:05
According to estimates, Japan's current amount not reflected in GDP is around 100 billion yen per year (100 yen is about 6.6 yuan). Compared with Japan's nominal GDP of 5.5 billion yen, this figure is very small, but it is expected to expand in the future. More importantly, incorporating residential accommodation into GDP accounting can not only reflect the actual situation more accurately, but also contribute to the development of Japan's shared economy.
Incorporating residential accommodation into GDP is not difficult in terms of operation. In practical accounting, there are three accounting methods for GDP, namely, production method, income method and expenditure method. China uses the production method to calculate GDP, i.e. to measure the added value of resident units in the accounting period from the perspective of production. The formula is: GDP = the total output of each department - the intermediate consumption of each department.
For the profit-making units in the non-material production sector of the tertiary industry, including daily repairs, baths, barbers, hotels, hostels, etc., their total output is generally equal to business income. For example, the value of a haircut by a barber, the value of a consultation by a lawyer, etc. Therefore, the residential industry into GDP, relatively not complex, the total expenditure of consumers on the platform, including platform costs and the income of owners providing residential. This is the added value of the residential industry.
Compared with the traditional industry, in many countries, the residential industry to develop, there are many policy and legal barriers. China is no exception.
In China, although there are some local laws and regulations to support the residential industry, such as the "Pudong New Area to Promote the Development of Characteristic Residential Industry (Trial Implementation)" issued in July 2016, and the "Guiding Opinions on Determining the Scope and Conditions of Residence" issued by the Zhejiang Provincial Government Office, there is no such thing as online car in China. Such a unified policy at the national level gives residential accommodation a legitimate status.
With the emergence of new technologies and new formats, there are a lot of contradictions between the new economy and the old methods. In response to this situation, the General Office of the State Council recently issued the Guiding Opinions on Promoting the Normative and Healthy Development of the Platform Economy, emphasizing that in order to strengthen the digital economy, adhere to inclusive and prudent supervision and support the development of new formats and new modes, we should innovate the concepts and methods of supervision and avoid using old methods to manage new formats... Promote the healthy growth of platform economy and shared economy.
Japan's incorporation of residential accommodation into GDP measurement is worth learning, and also helps to promote the legalization and orderly development of the shared economy, including residential accommodation.