Do Data Policy Restrictions Inhibit Trade in Services?

51 Pages Posted: 8 May 2019

See all articles by Martina Ferracane

Martina Ferracane

University of Hamburg - Institute of Law and Economics; European Centre for International Political Economy (ECIPE); University of California, Davis

Erik van der Marel

European Centre for International Political Economy (ECIPE); European Center for International Political Economy

Date Written: April 2019

Abstract

This paper examines whether restrictive data policies impact trade in services over the internet. We have collected comparable information on a variety of policy measures that regulate data for a wide group of countries for the years 2006-2016. This information is compiled in a weighted index that assesses the restrictiveness of these countries’ data policies. We distinguish between policies regulating the cross-border movement of data and policies regulating the domestic use of data. Using econometric estimations, we show that strict data policies negatively and significantly impact imports of data-intense services. Therefore, countries applying restrictive data policies, in particular with respect to the cross-border flow of data, suffer from lower levels of services traded over the internet. This negative impact is stronger for countries with better developed digital networks. The results of our analysis are significant and hold for various robustness checks.

Keywords: trade; services; data flows; digital technology; regulations

JEL Classification: F14; F23; F68; O30

Suggested Citation

Ferracane, Martina and Marel, Erik van der, Do Data Policy Restrictions Inhibit Trade in Services? (April 2019). Robert Schuman Centre for Advanced Studies Research Paper No. RSCAS 2019/29, Available at SSRN: https://ssrn.com/abstract=3384005 or http://dx.doi.org/10.2139/ssrn.3384005

Martina Ferracane (Contact Author)

University of Hamburg - Institute of Law and Economics ( email )

Johnsallee 35
Hamburg, 20148
Germany

European Centre for International Political Economy (ECIPE) ( email )

Rue Belliard 4-6
Brussels, 1040
Belgium

University of California, Davis ( email )

Martin Luther King Jr. Hall
Davis, CA 95616
United States

Erik van der Marel

European Centre for International Political Economy (ECIPE) ( email )

Rue Belliard 4-6
Brussels, 1040
Belgium

European Center for International Political Economy

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
19
Abstract Views
244
PlumX Metrics