Skip to main content
×
Home
    • Aa
    • Aa

Data, development, and growth

Abstract
Abstract

Economic development and growth theory have long grappled with the consequences of cross-border flows of goods, services, ideas, and people. But the most significant growth in cross-border flows now comes in the form of data. Like other flows, data flows can demonstrate imbalances among exports and imports. Some of these flows represent ‘raw’ data while others represent high-value-added data products. Does any of this make a difference in national economic development trajectories? This paper argues that the answer is yes. After reviewing the core logic of ‘high development theories’ from the twentieth century, I analyze the sometimes implicit applications of these arguments to data as they are evolving in the existing literature. I then put forward a different argument which takes better account of unique characteristics of the political economy that emerges at the intersection of data, machine learning, and the platform firms that use them. I explore the implications of this new argument for some policy choices that governments face with regard to data localization, import substitution, and other decisions relevant to growth in both advanced and emerging economies.

Copyright
Corresponding author
* Corresponding author: Steven Weber, Professor, School of Information and Department of Political Science University of California Berkeley steve_weber@berkeley.edu
Footnotes
Hide All

Funding for this work was provided by the Hewlett Foundation via the Center for Long Term Cybersecurity at UC Berkeley; and by the Carnegie Corporation via the ‘Bridging the Gap’ grant program.

Acknowledgments: Thank you to Jesse Goldhammer, Stephane Grumbach, Phil Nolan, AnnaLee Saxenian, Naazneen Barma, Elliot Posner, two anonymous reviewers, and the Editors of Business and Politics for comments and critiques.

Footnotes
References
Hide All
BaldwinRichard. 2011. “Trade and Industrialization after Globalization's Second Unbundling: How Building and Joining a Supply Chain Are Different and Why It Matters.” NBER Working Paper 17716. Available at http://www.nber.org/papers/w17716.
BaldwinRichard. 2016. The Great Convergence: Information Technology and the New Globalization. Cambridge, MA: Belknap Press of Harvard University Press.
CardosoFernando H. and Faletto Enzo. 1979. Dependency and Development in Latin America. Berkley, CA: University of California Press.
ChenMin, Mao Shiwen, and Liu Yunhao 2014. “Big Data: A Survey.” Mobile Networks and Applications 19 (2): 171209.
ChenYong, et al. 2016. “Big Data Analytics and Big Data Science: A Survey.” Journal of Management Analytics 3 (1): 142.
CoryNigel. 2016. “The Worst Innovation Mercantilist Policies of 2015.” ITIF, 11 January 2016. Available at https://itif.org/publications/2016/01/11/worst-innovation-mercantilist-policies-2015.
FaravelonAurelien, Stephane Frenot and StephaneGrumbach 2016. “Chasing Data in the Intermediation Era: Economy and Security at Stake.” IEEE Security and Privacy Magazine, Economics of Cybersecurity, Part 2.
Fosso WambeSamuel, et al. 2015. “How Big Data Can Make Big Impact: Findings from a Systematic Review and a Longitudinal Case Study.” International Journal of Production Economics 165: 234246.
GhoshAtish R., Ostry Jonathan D., and Qureshi Mahvash S.. 2016. “When Do Capital Inflow Surges End in Tears?American Economic Review 106 (5).
HamiltonAlexander. 1791. Report on the Subject of Manufactures presented to the House of Representatives. 5 December 1791 by the Secretary of the Treasury.
KennedyJoe. 2015. “Why Internet Platforms Don't Need Special Regulation.” The Information Technology and Innovation Foundation (ITIF). 19 October 2015. Available at https://itif.org/publications/2015/10/19/why-internet-platforms-don't-need-special-regulation.
KrugmanPaul. 1991, “The Move Toward Free Trade Zones.” In Policy Implications of Trade and Currency Zones, symposium sponsored by The Federal Reserve Bank of Kansas City, Jackson Hole, Wyoming. 22–24 August.
KrugmanPaul, ed. 1986. Strategic Trade Policy and the New International Economics. Cambridge, MA: Massachusetts Institute of Technology Press.
KrugmanPaul. 1990. Rethinking International Trade. Cambridge, MA: Massachusetts Institute of Technology Press.
KrugmanPaul. 1992Toward a Counter Counter-Revolution in Development Theory.” World Bank Economic Review 6 (suppl 1): 1538.
LindauerDavid L. and Prichett Lant 2002. “What's the Big Idea? Third Generation Policies for Economic Growth.” Economia 3: 139.
ManyikaJames, Lund Susan, Bughin Jacques, Woetzel Jonathan, Stamenov Kalin, and Dhingra Dhruv. 2016 “Digital Globalization: The New Era of Global Flows.” McKinsey Global Institute, exhibit E1 page 3.
MGI. 2016a. Globalization: The New Era of Global Flows. San Francisco.
MGI. 2016b. Globalization: The New Era of Global Flows. Exhibit E2, San Francisco.
RochetJean-Charles and Tirole Jean. 2006. “Two Sided Markets: A Progress Report.” Rand Journal of Economics 37 (3): 645667.
RodrikDani. 2005. “Growth Strategies.” In Handbook of Economic Growth Volume 1, edited by Again Philipe and Durlauf Steven, chapter 14.
RodrikDani. 2015. “Premature Deindustrialziation.” IAS School off Social Sciences Economic Working Papers Number 107, January.
RomerPaul M. 1993. “Two Strategies for Economic Development: Using Ideas and Producing Ideas.” Proceedings of the World Bank Annual Conference on Development Economics, published in supplement to the World Bank Economic Review, March 1993, 63–91.
WeberSteven. 2005. The Success of Open Source. Cambridge, MA: Harvard University Press.
WilliamsonOliver E. 1981. “The Economics of Organization: The Transaction Cost Approach,” The American Journal of Sociology 87 (3): 548577.
ZysmanJohn, Doherty Eileen, and Schwartz Andrew. 1996. “Tales From the ‘Global’ Economy: Cross National Production Networks and the Re-organization of the European Economy.” BRIE Working Paper 83 June.
Recommend this journal

Email your librarian or administrator to recommend adding this journal to your organisation's collection.

Business and Politics
  • ISSN: -
  • EISSN: 1469-3569
  • URL: /core/journals/business-and-politics
Please enter your name
Please enter a valid email address
Who would you like to send this to? *
×

Metrics

Altmetric attention score

Full text views

Total number of HTML views: 14
Total number of PDF views: 71 *
Loading metrics...

Abstract views

Total abstract views: 2618 *
Loading metrics...

* Views captured on Cambridge Core between 17th April 2017 - 22nd October 2017. This data will be updated every 24 hours.