THE COSTS OF DATA LOCALISATION: FRIENDLY FIRE ON ECONOMIC RECOVERY

Hosuk Lee-Makiyama · Erik Leendert Van Der Marel · Bert Verschelde

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Global trade and economics Digitalization, Law, and Regulation ICT Impact and Policies

Abstract

This paper aims to quantify the losses that result from data localisation requirements and related data privacy and security laws that discriminate against foreign suppliers of data, and downstream goods and services providers, using GTAP8. The study looks at the effects of recently proposed or enacted legislation in seven jurisdictions, namely Brazil, China, the European Union (EU), India, Indonesia, South Korea and Vietnam. Access to foreign markets and globalised supply chains are the major sources of growth, jobs and new investments - in particular for developing economies. Manufacturing and exports are also dependent on having access to a broad range of services at competitive prices, which depend on secure and efficient access to data. Data localisation potentially affects any business that uses the internet to produce, deliver, and receive payments for their work, or to pay their salaries and taxes. (...)

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2005Information technology and the American growth resurgence 1996Structure of GTAP 2004Global Technology, Local Adoption: A Cross-Country Investigation of Internet Adoption by Companies in the United States and China 2004Is there an export or import-led productivity growth in rapidly developing Asian countries? a multivariate VAR analysis

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