Issues of Cross-Border Data Flows Regulations in the World Economy

Abstract

Nowadays cross-border data flows play a critical role in the global value chains and a broad range of manufacturing and services industries. Worldwide cross-border data flows are a source of concern for the governments that prompts them to adopt new data protection regulations as countries encourage the use of databases to promote their domestic digital industries, which is in effect a new form of protectionism. The local data storing requirements may affect adversely the trade and production by preventing access to cheaper global digital services. A permanent cross-border dialogue for interoperability of the national personal data protection systems might facilitate global trade and avoid the so-called digital fragmentation.