The Digital Economy for Economic Development: Free Flow of Data and Supporting Policies

By Lurong Chen, Wallace Cheng, Dan Ciuriak, Fukunari Kimura, Junji Nakagawa, Richard Pomfret, Gabriela Rigoni, and Johannes Schwarzer

Abstract

The digital economy provides ample opportunities for G20 economies to accelerate inclusive economic growth. To take advantage of digital technology, free flow of data backed up by a series of policies to address other public policy objectives must be promoted. However, policies for the flow of data and data-related businesses are still underdeveloped and fragmented across countries. Nevertheless, although ample controversy exists, G20 economies must design and implement a series of policies as soon as possible. We will show in this policy brief that standard microeconomic theory can provide guidance to formulate such policies.