IDEAS home Printed from https://ideas.repec.org/p/ags/pugtwp/332763.html
   My bibliography  Save this paper

Modelling data localisation measures

Author

Listed:
  • Flaig, Dorothee
  • Lopez Gonzalez, Javier
  • Messent, James
  • Jouanjean, Marie-Agnès

Abstract

Data localisation measures introduce digital ‘border controls’ through a combination of restrictions on cross-border data flows and/or local storage requirements. The implications of these are not well understood and raise new policy challenges related to balancing consumer protection in a way that preserves the significant economic and trade benefits flowing from data-enabled business. Using an adapted computable general equilibrium model (METRO), this paper aims to identify the transmission mechanisms associated with the opportunity costs of data localisation measures. To this end, it models a hypothetical scenario with a uniform policy shock across selected regions (selected for demonstrative purposes only). The results suggest that the opportunity costs of data localisation measures would be highest in countries most integrated into global value chains or with higher trade exposure. They also highlight the possibility for large spill-over effects. Countries which have strong trading ties with measure-implementing regions would witness equivalent or even larger negative effects on their economic activity, even when these have not put any data localisation measure in place.

Suggested Citation

  • Flaig, Dorothee & Lopez Gonzalez, Javier & Messent, James & Jouanjean, Marie-Agnès, 2016. "Modelling data localisation measures," Conference papers 332763, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:332763
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/332763/files/8275.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jaime de MELO & Sherman ROBINSON, 2015. "Product Differentiation And The Treatment Of Foreign Trade In Computable General Equilibrium Models Of Small Economies," World Scientific Book Chapters, in: Modeling Developing Countries' Policies in General Equilibrium, chapter 2, pages 21-41, World Scientific Publishing Co. Pte. Ltd..
    2. Dutt, Pushan & Mitra, Devashish & Ranjan, Priya, 2009. "International trade and unemployment: Theory and cross-national evidence," Journal of International Economics, Elsevier, vol. 78(1), pages 32-44, June.
    3. Fehr, Ernst & Goette, Lorenz, 2005. "Robustness and real consequences of nominal wage rigidity," Journal of Monetary Economics, Elsevier, vol. 52(4), pages 779-804, May.
    4. Thomas W. Hertel & Terrie Walmsley & Ken Itakura, 2005. "Dynamic Effects Of The "New Age" Free Trade Agreement Between Japan And Singapore," World Scientific Book Chapters, in: Philippa Dee & Michael Ferrantino (ed.), Quantitative Methods For Assessing The Effects Of Non-Tariff Measures And Trade Facilitation, chapter 18, pages 483-523, World Scientific Publishing Co. Pte. Ltd..
    5. Marco Fugazza & Jean-Christophe Maur, 2008. "Non-Tariff Barriers In Computable General Equilibrium Modelling," UNCTAD Blue Series Papers 38, United Nations Conference on Trade and Development.
    6. Devaragan, Shantayanan & Lewis, Jeffrey D. & Robinson, Sherman, 1990. "Policy lessons from trade-focused, two-sector models," Journal of Policy Modeling, Elsevier, vol. 12(4), pages 625-657.
    7. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 488-500.
    8. Susan Stone & James Messent & Dorothee Flaig, 2015. "Emerging Policy Issues: Localisation Barriers to Trade," OECD Trade Policy Papers 180, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Feng, Chun-Chiang & Chang, Kuei-Feng & Lin, Jin-Xu & Lee, Tsung-Chen & Lin, Shih-Mo, 2022. "Toward green transition in the post Paris Agreement era: The case of Taiwan," Energy Policy, Elsevier, vol. 165(C).
    2. Potluri, Sai Rakshith & Sridhar, V & Rao, Shrisha, 2020. "Effects of data localization on digital trade: An agent-based modeling approach," Telecommunications Policy, Elsevier, vol. 44(9).
    3. Lim, Jing Zhi & Toh, Mun-Heng & Xie, Taojun, 2022. "Impact of Digital Economy Agreements on ASEAN Development: Estimates from a CGE Model," Conference papers 333441, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sorescu, Silvia & Flaig, Dorothee, 2017. "Trade facilitation impacts: approaches to model "just-in-time" delivery," Conference papers 332893, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. McDonald, Scott & Robinson, Sherman & Thierfelder, Karen, 2008. "Asian Growth and Trade Poles: India, China, and East and Southeast Asia," World Development, Elsevier, vol. 36(2), pages 210-234, February.
    3. Lewis, Jeffrey D. & Robinson, Sherman & Wang, Zhi, 1995. "Beyond the Uruguay Round: The implications of an Asian free trade area," China Economic Review, Elsevier, vol. 6(1), pages 35-90.
    4. Scott McDonald & Sherman Robinson & Karen Thierfelder, 2007. "Globe: A SAM Based Global CGE Model using GTAP Data," Departmental Working Papers 14, United States Naval Academy Department of Economics.
    5. Ahmed, S. Amer & Baris, Enis & Go, Delfin S & Lofgren, Hans & Osorio Rodarte, Israel & Thierfelder, Karen, 2017. "Assessing the Global Economic and Poverty Effects of Antimicrobial Resistance," Conference papers 332903, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    6. Sugiyarto, Guntur & Sinclair, M. Thea & Blake, Adam, 2001. "The Economic Effects and Distributional Implications of Globalisation and Foreign Tourism Boom in the Indonesian Economy: A CGE Assessment," Conference papers 330925, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    7. Go, Delfin & McDonald, Scott & Thierfelder, Karen & Walmsley, Terrie, 2014. "R-2-3: A Simple Global CGE Analysis Focusing on Macroeconomic Links," Conference papers 332452, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    8. Bruno Lanz & Thomas F. Rutherford, 2016. "GTAPINGAMS, version 9: Multiregional and small open economy models with alternative demand systems," IRENE Working Papers 16-08, IRENE Institute of Economic Research.
    9. Ahmed, Syud Amer & Barış, Enis & Go, Delfin S. & Lofgren, Hans & Osorio-Rodarte, Israel & Thierfelder, Karen, 2018. "Assessing the global poverty effects of antimicrobial resistance," World Development, Elsevier, vol. 111(C), pages 148-160.
    10. Abdella, Amin & Araige, Emerta & McDonald, Scott, 2013. "Food Price Shocks and their Impacts on Ethiopia: Policy Options to Lessen the Impacts on the Poor," Conference papers 332409, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    11. Hinojosa-Ojeda, Raul A. & Robinson, Sherman & Lewis, Jeffrey D., 1995. "Regional integration options for Central America and the Caribbean after NAFTA," The North American Journal of Economics and Finance, Elsevier, vol. 6(2), pages 121-148.
    12. Vos, R.P. & Ganuza, E. & Morley, S. & Robinson, S. & Pineiro, V., 2004. "Are export promotion and trade liberalization good for Latin America's poor? : a comparative macro-micro CGE analysis," ISS Working Papers - General Series 19158, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    13. George A. Akerlof, 2003. "Behavioral Macroeconomics and Macroeconomic Behavior," The American Economist, Sage Publications, vol. 47(1), pages 25-47, March.
    14. Gonzalez–Mellado, Aida, 2006. "Assessment of Poverty Impacts of Trade Liberalization by Integration of Household Analysis in CGE Models: Possibilities and Perspectives," Conference papers 331521, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    15. Grant, Jason H. & Hertel, Thomas W. & Rutherford, Thomas F., 2008. "Dairy Trq Liberalization: Contrasting Bilateral and Most Favored Nation Reform Options," Conference papers 331733, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    16. Devarajan, Shanta & Go, Delfin S. & Robinson, Sherman & Thierfelder, Karen, 2022. "The Role of Trade Policy in Climate Mitigation: Carbon Border Adjustment Mechanism (CBAM)," Conference papers 333494, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    17. Bamiere, Laure & Bureau, Jean Christophe & Guindé, Loïc & Guyomard, Hervé & Jacquet, Florence & Treguer, David, 2008. "Energy efficiency, environmental benefits and cost competitiveness of EU biofuels," Conference papers 331726, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    18. Shantong, Li & Jianwu, He, 2008. "Regional Energy/Envionmental Policy and Leakage Effect," Conference papers 331711, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    19. Tanaka, Tetsuji & Hosoe, Nobuhiro, 2007. "Productivity Shock and National Food Security for Japan," Conference papers 331597, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    20. McDonald, Scott & Kirsten, Johann F. & van Zyl, Johan, 1997. "A social accounting matrix for modeling agricultural policy reform in South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 36(4), pages 1-20, December.

    More about this item

    Keywords

    Research Methods/ Statistical Methods;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:pugtwp:332763. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/gtpurus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.