Digital trade, data protection and EU adequacy decisions

dc.contributor.authorFERRACANE, Martina Francesca
dc.contributor.authorHOEKMAN, Bernard M.
dc.contributor.authorVAN DER MAREL, Erik
dc.contributor.authorSANTI, Filippo
dc.date.accessioned2023-06-06T12:29:06Z
dc.date.available2023-06-06T12:29:06Z
dc.date.issued2023
dc.description.abstractUsing a structural gravity model, we assess whether EU adequacy decisions on data protection are associated with bilateral digital trade. Controlling for digital-relevant bilateral covariates, including preferential trade agreements and other binding data flow arrangements, we find that countries that received EU adequacy exhibit an increase in digital trade between 6-14 percent, representing a trade cost reduction up to 9 percent. This is mostly driven by the EU granting adequacy to the U.S., reflecting the dominance of the EU and U.S. in global digital trade. We also find that countries that have an EU adequacy determination exhibit greater digital trade among each other, suggestive of a network or club effect. Complementary country-specific analysis of post-adequacy digital trade performance using synthetic control methods confirms the positive effects of adequacy.en
dc.description.sponsorshipThis work was partially supported by the ESRC Centre of Inclusive Trade Policy, UK (Hoekman)en
dc.format.mimetypeapplication/pdfen
dc.identifier.issn1028-3625
dc.identifier.urihttps://hdl.handle.net/1814/75629
dc.language.isoenen
dc.orcid.uploadtrue*
dc.publisherEuropean University Instituteen
dc.relation.ispartofseriesEUIen
dc.relation.ispartofseriesRSCen
dc.relation.ispartofseriesWorking Paperen
dc.relation.ispartofseries2023/37en
dc.relation.ispartofseriesGlobal Governance Programme-505en
dc.relation.ispartofseriesEuropean Centre for International Political Economy (ECIPE)en
dc.rightsinfo:eu-repo/semantics/openAccessen
dc.rights.licenseAttribution 4.0 International*
dc.rights.urihttp://creativecommons.org/licenses/by/4.0/*
dc.subjectDigital tradeen
dc.subjectData protectionen
dc.subjectMutual recognitionen
dc.subjectEquivalenceen
dc.subjectTrade costsen
dc.titleDigital trade, data protection and EU adequacy decisionsen
dc.typeWorking Paperen
dspace.entity.typePublication
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person.identifier.orcid0000-0002-6839-7142
person.identifier.orcid0000-0001-6932-2591
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