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Effects of Regulations on Cross-border Data Flows: Evidence from a Survey of Japanese Firms

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  • TOMIURA Eiichi
  • ITO Banri
  • KANG Byeongwoo

Abstract

We distributed a questionnaire to large- and mid-sized firms in the manufacturing, wholesale, and information-related service industries in Japan to investigate the firms' responses to regulations governing cross-border data transfers. Only a limited fraction of the surveyed firms regularly transfer data across national borders. However, among the firms active in collecting data from Internet of Things (IoT) devices from overseas, the EU's General Data Protection Regulation (GDPR) affects more than 20% of firms and the number of firms affected by the Cyber Security Act of China and similar regulations in other countries exceeds the number of firms that have not noticed an impact. The affected firms have responded to the regulations through measures such as changing the location of their data processing/storage, introducing firewalls, and/or assigning staff to address the issues. However, many firms have not yet taken any action.

Suggested Citation

  • TOMIURA Eiichi & ITO Banri & KANG Byeongwoo, 2019. "Effects of Regulations on Cross-border Data Flows: Evidence from a Survey of Japanese Firms," Discussion papers 19088, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:19088
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    File URL: https://www.rieti.go.jp/jp/publications/dp/19e088.pdf
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    1. Tomiura, Eiichi, 2007. "Foreign outsourcing, exporting, and FDI: A productivity comparison at the firm level," Journal of International Economics, Elsevier, vol. 72(1), pages 113-127, May.
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    1. TOMIURA Eiichi & ITO Banri & KANG Byeongwoo, 2020. "Characteristics of Firms Transmitting Data Across Borders: Evidence from Japanese Firm-level Data," Discussion papers 20048, Research Institute of Economy, Trade and Industry (RIETI).

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