Document Type
Original Article
Subject Areas
African Trade
Keywords
digital trade; data protection; mutual recognition; equivalence; trade costs
Abstract
Using a structural gravity model, this paper assesses whether data-related regulations for 31 African countries have an impact on bilateral trade in digital services. Controlling for all possible directions of fixed effects, this paper finds that local storage requirements and regulations requiring partner countries to have similar privacy laws in place are associated with lower imports in digital services between Africa and partner countries. By contrast, this paper also finds that the requirement for similar privacy conditions by partner countries is associated with higher exports in digital services for African countries with trading partners. This export effect is driven by African countries that have developed and implemented a wider regulatory framework for data protection, most likely enabling them to abide by the privacy conditions their partner countries demand. These findings confirm the ambiguous role of regulatory models that condition the free flow of personal data on rules for data protection, which could play a positive role in enhancing digital services exports for Africa.
How to Cite This Article
Marel, Erik van der
(2024)
"Data Regulation and Digital Services Trade in Africa,"
Journal of African Trade: Vol. 11:
Iss.
1, Article 5.
Receive Date
03/02/2024
Accept Date
23/10/2024
Publication Date
2024
