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Do data policy restrictions inhibit trade in services?

Author

Listed:
  • Erik Marel

    (ECIPE, Université Libre de Bruxelles & ECARES)

  • Martina Francesca Ferracane

    (European University Institute (EUI))

Abstract

This paper examines whether restrictive data policies are related to trade in services. The authors 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. They distinguish between policies regulating the cross-border movement of data and policies regulating the domestic use of data. Using econometric estimations, they show that strict data policies are negatively and significantly associated with imports of data-intense services. Therefore, countries applying restrictive data policies, in particular with respect to the cross-border flow of data, are likely to suffer from lower levels of services traded cross-border. The results of this analysis are significant and hold for various robustness checks.

Suggested Citation

  • Erik Marel & Martina Francesca Ferracane, 2021. "Do data policy restrictions inhibit trade in services?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 157(4), pages 727-776, November.
    • Handle: RePEc:spr:weltar:v:157:y:2021:i:4:d:10.1007_s10290-021-00417-2
    DOI: 10.1007/s10290-021-00417-2
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    More about this item

    Keywords

    Trade; Services; Data flows; Digital technology; Regulations;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F68 - International Economics - - Economic Impacts of Globalization - - - Policy
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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