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Economic Implications of Cross-Border Data Flows

Author

Listed:
  • Rajat Kathuria

    (Indian Council for Research on International Economic Relations (ICRIER))

  • Mansi Kedia

    (Indian Council for Research on International Economic Relations (ICRIER))

  • Gangesh Sreekumar Varma
  • Kaushambi Bagchi

Abstract

This report builds on the recent literature on data localisation to provide a reflective view on the economic implications of the existing and proposed localisation measures in India. The study captures the economic impacts of data localisation by presenting both domestic and global business models and the potential impact on India's international trade. Localisation measures more often than not transcend economic considerations. A blanket assessment on the need for or efficacy of data localisation, is therefore not within the scope of this study. The focus of this study is restricted to the economic dimension. For the macro-economic assessment in this study, we estimate the impact of cross-border data flowson international trade. We hypothesise that cross border data flows positively impact India's foreign trade. Towards this objective, we use an augmented gravity model of trade. The estimation is based on a panel data set of trade between India and 37 partner countries over the period 2014 to 2018. Our estimation produces significant and consistent results confirming the stated hypothesis.

Suggested Citation

  • Rajat Kathuria & Mansi Kedia & Gangesh Sreekumar Varma & Kaushambi Bagchi, 2019. "Economic Implications of Cross-Border Data Flows," Indian Council for Research on International Economic Relations (ICRIER) Report 19-r-18, Indian Council for Research on International Economic Relations (ICRIER), New Delhi, India.
    • Handle: RePEc:bdc:report:19-r-18
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