Annegret Bendiek and Magnus Römer
This paper aims to explain how the EU projects its own data protection regime to third states and the US in particular. Digital services have become a central element in the…
Abstract
Purpose
This paper aims to explain how the EU projects its own data protection regime to third states and the US in particular. Digital services have become a central element in the transatlantic economy. A substantial part of that trade is associated with the transfer of data, most of it personal, requiring many of the new products and services emerging to adhere to data protection standards. Yet different conceptions of data protection exist across the Atlantic, with the EU putting a particular focus on protecting the fundamental right to privacy.
Design/methodology/approach
Using the distinction between positive and negative forms of market integration as a starting point (Scharpf, 1997), this paper examines the question of how the EU is projecting its own data protection regime to third states. The so-called California effect (Vogel, 1997) and the utilization of trade agreements in the EU’s foreign policy and external relations are well researched. With decreasing effectiveness and limited territorial reach of its enlargement policy, the EU found trade agreements to be particularly effective to set standards on a global level (Lavenex and Schimmelfennig, 2009). The existence of the single market makes the Union not only an important locus of regulation but also a strong economic actor with the global ambition of digital assertiveness. In the past, establishing standards for the EU’s vast consumer market has proven effective in compelling non-European market participants to join.
Findings
As the globe’s largest consumer market, Europe aims to project its own data protection laws through the market place principle (lex loci solutionis), requiring any data processor to follow its laws whenever European customers’ data are processed. This paper argues that European data protection law creates a “California Effect”, whereby the EU exerts pressure on extra-territorial markets by unilateral standard setting.
Originality/value
With its GDPR, the EU may have defused the problem of European citizens’ data being stored and evaluated according to the US law. However, it has also set a precedent of extra-territorial applicability of its legislation – despite having previously criticized the USA for such practices. By now, international companies increasingly store data of European customers in Europe to prevent conflicts with EU law. With this decision, the EU will apply its own law on others’ sovereign territory. Conflicts created through the extra-territorial effects of national law may contradict the principle of due diligence obligations but are nevertheless not illegitimate. They may, however, have further unintended effects: Other major economies are likely to be less reluctant in the future about passing legal provisions with extra-territorial effect.
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Thiago Rocha Fabris, André Filipe Zago de Azevedo and Magnus Dos Reis
This study investigates the implications of trade, institutional and geographical variables on economic growth. The proposed analytical framework extends the seminal works of…
Abstract
Purpose
This study investigates the implications of trade, institutional and geographical variables on economic growth. The proposed analytical framework extends the seminal works of Frankel and Romer (1999), Rodrik et al. (2004), Silva and Tenreyro (2006) and Squalli and Wilson (2011).
Design/methodology/approach
Applying a comprehensive panel database that includes 133 countries during the period 1996–2014. Our estimators encompass three dimensions (fixed effects) and use the Pseudo Poisson Maximum Likelihood (PPML) approach to create an instrument for trade. This approach effectively addresses the issues associated with endogenous regressors.
Findings
Findings from this study demonstrate a significant correlation between economic growth and the variables of trade, institutions and geography, with trade surfacing as the most influential factor. Notably, the impact of these factors appears to be diminished in low-income countries, especially in the parameters that reflect the role of institutions on per capita income.
Originality/value
The originality of the study is underscored by four key aspects: the employment of a unique econometric approach, the use of a three-dimensional panel database with fixed effect estimators and PPML, the inclusion of a novel measure of trade openness diverging from the conventional literature in the bilateral trade equation, and finally, the implementation of robustness tests probing the sensitivity of per capita income to institutions, trade and geography.
Alisa Brink, C. Kevin Eller and Huiqi Gan
We conduct an experiment to examine the occurrence of the bystander effect on willingness to report a fraudulent act. Specifically, we investigate the impact of evidence strength…
Abstract
We conduct an experiment to examine the occurrence of the bystander effect on willingness to report a fraudulent act. Specifically, we investigate the impact of evidence strength on managers’ decisions to blow the whistle in the presence and absence of other employees who have knowledge of the wrongdoing. Results indicate that when there is strong evidence indicating a fraudulent act, individuals with sole knowledge are more likely to report than when others are aware of the fraudulent act (the bystander effect). However, the bystander effect is not found when evidence of fraud is weak. Further, a mediated moderation analysis indicates that perceived personal responsibility to report mediates the relation between others’ awareness of the questionable act and reporting likelihood, suggesting that the bystander effect is driven by diffusion of responsibility. Our results have implications for all types of organizations that wish to mitigate the detrimental effect of fraud. Specifically, training or incentives may be necessary to overcome the bystander effect in an organization.
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Anthony Adu-Asare Idun and Anthony Q.Q. Aboagye
This paper takes the finance-growth nexus further by looking at the relationship between bank competition, financial innovations and economic growth in Ghana. The purpose of this…
Abstract
Purpose
This paper takes the finance-growth nexus further by looking at the relationship between bank competition, financial innovations and economic growth in Ghana. The purpose of this paper is to find the causality among bank competition, financial innovations and economic growth in Ghana.
Design/methodology/approach
The relationship between bank competition, financial innovations and economic growth was established through the framework of the endogenous growth model. In addition, the paper employed the bound testing ARDL cointegration procedures to enable us to establish both short-run and long-run relationship between bank competition, financial innovations and economic growth. Granger causality test were also estimated to determine the direction of causality.
Findings
The results showed that, in the long run, bank competition is positively related to economic growth while financial innovation is negatively related to economic growth. In the short run, bank competition is negatively related to economic growth. By the same token, financial innovation is positively related to economic growth in the short run. In terms of causality, the results showed that there is unidirectional Granger causality from bank competition to economic growth. However, there is bidirectional Granger causality between financial innovation and economic growth.
Practical implications
The study therefore, recommends for more regulations toward a more competitive banking system with more innovative products tailored toward mobilization of savings and investment to growth induced sectors of the economy.
Originality/value
This paper provides a time series perspective to the finance-growth nexus and highlights the potential contribution of effective banking development to the economic welfare of the Ghanaian citizens.
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Dante Amengual, Enrique Sentana and Zhanyuan Tian
We study the statistical properties of Pearson correlation coefficients of Gaussian ranks, and Gaussian rank regressions – ordinary least-squares (OLS) models applied to those…
Abstract
We study the statistical properties of Pearson correlation coefficients of Gaussian ranks, and Gaussian rank regressions – ordinary least-squares (OLS) models applied to those ranks. We show that these procedures are fully efficient when the true copula is Gaussian and the margins are non-parametrically estimated, and remain consistent for their population analogs otherwise. We compare them to Spearman and Pearson correlations and their regression counterparts theoretically and in extensive Monte Carlo simulations. Empirical applications to migration and growth across US states, the augmented Solow growth model and momentum and reversal effects in individual stock returns confirm that Gaussian rank procedures are insensitive to outliers.
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Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some…
Abstract
Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.
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Abstract
Purpose
The purpose of this paper is to propose a valid and quantitative measurement method of knowledge diffusion efficiency for the knowledge collaboration networks (KCNs).
Design/methodology/approach
This paper builds a weighted KCN model with the node and edge weights. Based on the weighted KCN, the factors of knowledge diffusion efficiency are proposed and analyzed. Then, the knowledge transfer effect between two nodes is proposed and measured by comprehensively integrating the above factors. Furthermore, the main metric of efficiency of knowledge diffusion is proposed by modifying Latora and Marchiori’s model of efficiency of network.
Findings
A case is studied to illustrate the applicability of the proposed weighted network model and the knowledge diffusion efficiency measurement method. The results show the methods proposed in this paper can better measure and analyze the knowledge diffusion efficiency of KCNs than the traditional un-weighted methods and the subjective evaluation methods.
Originality/value
The real KCNs are always weighted networks. The weighted model of KCN can better reflect the real networks than the un-weighted model. Based on the weighted networks, the measurement methods proposed in this paper can more efficiently and accurately measure and evaluate the knowledge diffusion efficiency than the traditional methods. This study can help researchers to better understand knowledge diffusion theoretically, and provide managers with a decision support for knowledge management in practice.