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GTAP Resources: Resource Display

GTAP Resource #5030

"Modelling data localisation measures"
by Flaig, Dorothee, Javier Lopez Gonzalez, James Messent and Marie-Agnès Jouanjean


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.


Resource Details (Export Citation) GTAP Keywords
Category: 2016 Conference Paper
Status: Published
By/In: Presented at the 19th Annual Conference on Global Economic Analysis, Washington DC, USA
Date: 2016
Version:
Created: Flaig, D. (4/15/2016)
Updated: Flaig, D. (6/9/2016)
Visits: 458
- Non-Tariff barriers
- Non-Tariff measures in services
- Trade in services


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