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41. Network and Text Analysis on Digital Trade Agreements

Author:
Kyu Yub Lee, Cheon-Kee Lee, Won Seok Choi, Jyun-Hyun Eom, and Unjung Whang
Publication Date:
02-2023
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
We use the Trade Agreements Provisions on Electronic Commerce and Data and their corresponding texts to undertake network and text analysis on trade agreements with digital trade chapters to identify which countries are important in the network and how similar or different their texts of digital trade chapters are. centrality values reflect which countries are influential in the network, while values of similarity assess the level of similarity between the texts of digital trade chapters concluded by these countries. Centrality and similarity are complementary in assessing the relative positions of countries in the network, where the number of linkages between countries is significant in centrality and the quality of digital trade chapters is critical in similarity. We interpret this to mean that a country with a high degree of centrality is likely to be a rule-promoter in the network, whereas a country with a high degree of similarity is likely to be a rule-maker. The brief highlights three key findings from network and text analysis of digital trade agreements: (1) The U.S. has been the best rule-maker but not the best rule-promoter, whereas Singapore has been the best rule-promoter but not the best rule-maker. (2) China is a rule-maker, but to a weaker extent than the U.S., and Korea is a rule-promoter, although it is less active than Singapore. (3) Japan and Australia have served as both rule-makers and rule-promoters. Identification of countries’ relative positions in the network of digital trade agreements would be useful at the start of talks on digital trade policy.
Topic:
Science and Technology, Treaties and Agreements, Digital Economy, and Trade
Political Geography:
Japan, China, South Korea, Australia, and United States of America

42. Balancing Security and Innovation: Opposition's View on Turkey's Digital Policies

Author:
Mesut Özcan and Ussal Şahbaz
Publication Date:
04-2023
Content Type:
Working Paper
Institution:
Institut français des relations internationales (IFRI)
Abstract:
The upcoming presidential and parliamentary elections in Turkey on May 14, 2023, are expected to be closely contested. Polls suggest that the ruling AK Party-led People’s Alliance will lose its majority in parliament, resulting in a hung lower house. This would create an opportunity for multiparty dialogue and temporary alliances on specific policy issues, leading to legislation that is the result of multiparty bargaining rather than the agenda of a dominant party. Against this backdrop, it is crucial to understand the Turkish opposition’s views on a variety of policy issues, with digital policies being a particularly underexplored one. At the intersection of political, economic, and technological issues, digital policies are regulations that have to adapt to a rapidly changing landscape of technological advances on a global scale. Turkey, as a regional power and an upper-middle-income economy, has attempted to take advantage of technological innovations to further promote economic growth and national security purposes. However, the AK Party government's efforts have been met with skepticism from opposition groups as they have fallen short of protecting individual rights and freedoms online. The study is organized into four sections, with an analysis of the political situation on the eve of the upcoming elections, a description of the technological ecosystem in Turkey, an analysis of the evolution of digital policies in Turkey under the AK Party’s successive governments, and a detailed overview of the main opposition parties' digital policy positions. This study thus provides insight into the future of digital policies in Turkey and the potential impact of the upcoming elections on this pivotal issue.
Topic:
Governance, Elections, Digital Economy, Internet, and Recep Tayyip Erdoğan
Political Geography:
Turkey and Middle East

43. Redefining Indonesia’s Digital Economy

Author:
Militcyano Samuel Sapulette and Pyan Amin Muchtar
Publication Date:
01-2023
Content Type:
Policy Brief
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The Indonesian digital economy is the largest and most attractive investment destination amongst the Association of Southeast Asian Nations (ASEAN) Member States (AMS). The sector has grown more than fourfold in the last 4 years and has supported other sectors. Amid the exponential growth, digital businesses are facing what is called a ‘tech winter’ in which start-ups are likely to experience slowdowns or even bankruptcy. In addition, although the digital transformation helps businesses improve productivity and drive economic growth, it has consequences for employment and wages, particularly for less skilled workers. While the potential of the digital economy must be continuously harnessed, some key initiatives need to be implemented to mitigate its negative effects.
Topic:
Science and Technology, Digital Economy, Investment, and Innovation
Political Geography:
Indonesia and Southeast Asia

44. Understanding the ASEAN Digital Economy Framework Agreement: A Means to Support ASEAN Integration

Author:
Mima Sefrina
Publication Date:
04-2023
Content Type:
Policy Brief
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The coronavirus disease (COVID-19) pandemic has accelerated the importance of digital technologies in the economy, particularly in e-commerce and digital financial services. Recognising the importance of digital technologies for economic recovery, the Association of Southeast Asian Nations (ASEAN) leaders signed the Bandar Seri Begawan Roadmap in 2021, which laid the foundation for the integration of the ASEAN digital economy in three phases – recovery, implementation, and transformation – and affirmed their interest in the establishment of a Digital Economy Framework Agreement (DEFA). The DEFA aims to deepen existing digital economy cooperation and ensure the interoperability of digital economy systems. The formulation and signing of the DEFA will require the provision of flexible timelines and technical assistance, as the ASEAN Digital Integration Index shows that ASEAN is still in the early stages of digital economy development and that ASEAN Member States are at different levels of readiness for digital economy integration.
Topic:
Governance, Regulation, Digital Economy, Regional Integration, and ASEAN
Political Geography:
Southeast Asia

45. Fostering ASEAN’s Digital Future through Cybersecurity Policies and Human Empowerment

Author:
Michelle Chandra Kasih
Publication Date:
05-2023
Content Type:
Policy Brief
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The adoption of advanced technology comes with the risk of cyberattacks. Despite the remarkable prospects of the digital economy, the cost of cyberattacks has reached millions of United States (US) dollars and is projected to increase. Investment is needed to provide cybersecurity to help secure the growth of the digital and sustainable economy and anticipate more advanced attacks. As investment in cybersecurity has started to grow in the Association of Southeast Asian Nations (ASEAN), challenges are present in the intangible form of inexistent or strict policies, skill shortages, and insufficient public awareness, which can halt the effectiveness of such investment. This policy brief proposes three policy recommendations to ensure successful investment in cybersecurity: Ensure that cybersecurity policies and legal frameworks are not underdeveloped or overly restrictive. Support small businesses in earning customer trust through cost-effective guidelines. Incentivise and maintain partnerships for education, research, and capacity building with moral and ethical education for future experts. Raise cyber hygiene and establish integrative reporting platforms that help people identify and detect cyber risk.
Topic:
Science and Technology, Cybersecurity, Digital Economy, and ASEAN
Political Geography:
Southeast Asia

46. ASEAN Digital Community (ADC) 2045

Author:
Lili Yan Ing, Imam Pambagyo, Yessi Vadila, Ivana Markus, and Livia Feliciani Nazara
Publication Date:
08-2023
Content Type:
Policy Brief
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Digital transformation has profoundly reshaped not only the way we work but also the way we live. It has shifted the focus of goods and services trade, emphasising not only what is produced and traded, but also how it is traded, customised, and delivered. The rapid digital transformation within the ASEAN region has ushered in an array of risks and challenges. These challenges encompass a spectrum of concerns, ranging from the safeguarding of data privacy and fortification against cyber threats to grappling with intensified competition and addressing the ever-widening digital divide. To fully embrace the opportunities presented by the digital age, ASEAN must lay the foundation for an ASEAN Digital Community (ADC) 2045, that can serve as a vision for ASEAN in embracing a new era. This visionary pursuit must be anchored in four pivotal cornerstones: robust data governance, the infusion of value-added principles, the establishment of seamless digital connectivity, and the propagation of digital inclusivity.
Topic:
Science and Technology, Digital Economy, Innovation, Integration, and ASEAN
Political Geography:
Southeast Asia

47. şletmelerde ERP Uygulamalarının Dijital Dönüşüm Sürecine Katkıları

Author:
Mustafa Keskinkılıç and Metin İpkin
Publication Date:
07-2023
Content Type:
Journal Article
Journal:
AURUM Journal of Social Sciences
Institution:
Altinbas University
Abstract:
Bu çalışmada, işletmelerde Kurumsal Kaynak Planlama (ERP) uygulamalarının dijital dönüşüm sürecine katkıları incelenmektedir. Bu bağlamda, işletmelerin kullandıkları ERP uygulamalarının dijital dönüşüm süreçlerinde yarar sağlayıp sağlamadıkları, eğer sağlıyorlarsa bu yararların neler oldukları belirlenmek istenmektedir. Böylelikle ERP uygulamaları ile dijital dönüşüm sürecine dahil olmak isteyen işletmelere bir yol gösterilmesi hedeflenmektedir. Çalışmada öncelikle dijital dönüşüm ve kurumsal kaynak planlama konuları ele alınmaktadır. Daha sonra, ERP uygulamalarının da yararlarından olduğu varsayılan ve dokuz maddeden oluşan dijital dönüşümün yararları açıklanmış ve bu maddelerle nitel araştırma yöntemi kullanılarak yarı yapılandırılmış bir görüşme formu oluşturulmuştur. Erzurum ilinde ERP uygulamaları kullanan işletmeler örneklem grubu olarak seçilmiş ve görüşme yöntemiyle veriler elde edilmiştir. Ardından bu veriler betimsel analiz yöntemiyle analiz edilmiş ve işletmelerin ERP uygulamalarından birçok kazanım elde ettiği sonucuna varılmıştır. Çalışmadan elde edilen bir diğer önemli sonuç ise; işletmelerin dijital dönüşüm konusunda bilgi eksikliği olduğu ve ERP uygulamalarından elde edemediği yararların kullanılan ERP uygulamasını geliştiren yazılım firmasından kaynaklandığıdır
Topic:
Digital Economy, Business, and Economic Transformation
Political Geography:
Global Focus

48. Dijital Ekonomi ve Türkiye’nin Dijital Ekonomi Göstergelerinin Seçilmiş AB Ülkeleri ile Karşılaştırmalı Analizi

Author:
E. Murat Özgür
Publication Date:
12-2023
Content Type:
Journal Article
Journal:
Bilgi
Institution:
Sakarya University (SAU)
Abstract:
Amaç - Çalışmanın temel amacı, Türkiye’nin dijital ekonomiye adaptasyon sürecinin incelenmesidir. Türkiye AB adayı bir ülkedir. Bu nedenle birlik üyesi ülkeler ile karşılaştırma yapılmış, Türkiye’nin bu ül-keler karşısında hangi yönlerini geliştirmesi gerektiği tespit edilmeye çalışılmıştır. Eksik yönler belirlenerek bu eksiklikleri giderecek politikalar oluşturulursa Türkiye’nin dijital ekonomiye daha hızlı ve kolay adapte olması sağlanabilir. Yöntem/Metodoloji/Dizayn- Çalışmada, nitel analiz yöntemi kullanılmıştır. 2023 yılında yayınlanan en güncel Küresel İnovasyon Endeksi raporundaki göstergeler incelenmiştir. 2023 yılı raporuna göre genel endeks puanı en yüksek ve en düşük olan AB ülkeleri ile Türki-ye arasında karşılaştırma yapılmıştır. En yüksek puan İsveç’e, en düşük puan ise Romanya’ya aittir. Sonuçlar- Türkiye’nin dijital ekonomiye adaptasyon sürecinde özel-likle kurumsal kaliteyi artırması gerektiği ifade edilebilir Politik ve operasyonel istikrar, işten çıkarma maliyeti, iş yapma politikaları Türkiye’nin kurumlar boyutundaki zayıf yönlerini oluşturmaktadır. Ayrıca Türkiye’nin ekolojik sürdürülebilirlik konusunda AB ülkelerinin geri-sinde kaldığı, çevreye duyarlı bir ekonomik yapı oluşturma konusunda daha somut adımlar atması gerektiği görülmektedir. Katkı/Farklılıklar- Küresel İnovasyon Endeksi, ele alınan göstergelerin çeşitliliği ve inceleme yapılan ülke sayısı ile dijital ekonomiyi bütünsel olarak yansıtan ölçüm yöntemlerinden biridir. Bu endekste yer alan bütün boyut ve göstergeleri ayrıntılı olarak incelemesi, Türki-ye’nin AB ülkeleri karşısındaki durumu hakkında bilgi vermesi açısından çalışmanın önemli olduğu ifade edilebilir.
Topic:
Communications, European Union, Digital Economy, Innovation, and Information Technology
Political Geography:
Europe, Turkey, and Middle East

49. The video games industry in Europe: current situation, issues and prospects

Author:
Loïse Lyonnet and David Rabineau
Publication Date:
10-2023
Content Type:
Commentary and Analysis
Institution:
Robert Schuman Foundation (RSF)
Abstract:
Beyond them being a societal phenomenon, video games are smashing all records. On a national or European scale, the annual figures for the video games industry are rising to record heights: the European market is set to grow to €24.5 billion by 2022, with more than one in two Europeans aged between 6 and 64 enjoying video games as a leisure activity. Its economic performance aside, the video game industry is eminently strategic, with 110,000 jobs across Europe, including around 20,000 in France. Strategically positioned at the crossroads of different disciplines, the video games industry is closely linked to technological developments, placing it at the forefront of all digital revolutions. At a time when the question of sovereignty is a priority, video games are a solid vector of soft power for European countries. Renowned European studios such as CD Projekt in Poland, Crytek in Germany and Paradox Interactive in Sweden have demonstrated their excellence on an international scale, exporting their productions all over the world. Video games are a lever of influence for Europe that should neither be ignored nor underestimated. Although it boasts a number of world champions, such as France's Ubisoft, the European video game industry still suffers a number of handicaps, not least because its stakeholders find it difficult to organise collectively and work together at EU level. As a result, the industry is developing unevenly from one country to the next, with major disparities in terms of political support. The video game industry still suffers from a lack of visibility. The development of the video games industry at European level opens up new prospects for job creation, economic opportunities, innovation and training in strategic sectors. The European institutions and the Member States need to develop a proactive policy in favour of video games, by increasing their financial support for studios, encouraging intra-European collaboration and developing a framework to prevent talent from leaving the European Union. Video games are an issue of sovereignty for Europe: this is an opportunity not to be missed!
Topic:
Science and Technology, Digital Economy, Soft Power, Industry, and Video Games
Political Geography:
Europe

50. A comparative look at antitrust regulation of the digital economy in Europe and China

Author:
Aifang Ma
Publication Date:
12-2023
Content Type:
Working Paper
Institution:
Robert Schuman Foundation (RSF)
Abstract:
Influenced by the Matthew effect[1], the digital economy tends to be a hyper-concentrated market. Large platforms with well-developed business models have far less difficulties in attracting customers and accumulating data than smaller ones. Market concentration is accentuated by certain explicitly monopolistic practices of large firms. It is not uncommon for them to deliberately design their products in such a way that they are incompatible with the devices or services offered by their competitors. The iPhone charger, for example, is not compatible with smartphones made by Samsung or Xiaomi, as this could affect the longevity of the battery. In China, consumers can only pay for their purchases on Taobao, a C2C platform of Alibaba, by using Alipay, not WeChat Pay, even though these two online payment tools work in the same way. To eliminate their competitors, established companies have embarked on aggressive mergers and acquisitions (M&A), incorporating many innovative start-ups in the process. It is estimated that Google merged 257 entities between 2006 and 2022. At the same time, Facebook acquired 94 companies between 2005 and 2021. The trajectory followed by other digital firms is similar. The boundaries of the behemoths are constantly expanding to cover a wide range of activities: social networks, entertainment, e-commerce, artificial intelligence, content sharing, etc... Cartels, abuse of the dominant position on the market, and M&A by digital giants destabilise the market. They kill the enthusiasm of small businesses for technological innovation, reduce the number of choices available to consumers, and most importantly, turn the economic power of big businesses into political power. One simply can read The Age of Surveillance Capitalism[2] to understand the close links forged between the digital empires of Silicon Valley and the American government. The latter relies on high-tech companies to develop surveillance technologies. The companies recruit former politicians to improve their chances of obtaining favourable deals. One important mission of the American association Numerama is to oversee the relations between political and economic actors. According to the association, between 2005 and 2016, Google recruited sixty-five employees from European administrations, including senior civil servants, to make its voice heard in Brussels. At the same time, fifteen employees of Google joined European administrations at various levels[3]. The unequal capacity of companies to reach key decision-makers further strengthens the position of the large to the detriment of the small. The European Union is currently the most active in the antitrust regulation of the digital economy. On the one hand, with the Digital Markets Act (DMA), the EU is the first political entity to have established specific legislations on antitrust issues in the digital economy. Furthermore, compared with their counterparts in other countries, European regulators are the most intransigent in the fight against anti-competitive practices. Record-high fines imposed on major platforms come from Europe, a subject that will be discussed later in this article. Following in its footsteps, China, which has long been laxist in this area, has been taking active measures since the end of 2020 to regulate the activities of its national champions. In July 2021, Tencent was punished six times for its illegal M&A, which led to market concentration. In October 2021, Meituan Dianping, one of the largest e-commerce platforms, was penalized for abusing its dominant position in the meal delivery market. The company was accused of forcing retailers to sign exclusive agreements with it. The Chinese regulator imposed a fine of 3.442 billion yuan (€441.8 million) to Meituan Dianping. New provisions have been proclaimed and the amendment to the anti-monopoly law was approved by the Chinese legislature on 24 June 2022. Nevertheless, challenges persist in the Middle Kingdom. The delimitation of the relevant market, an essential procedure for judging whether a firm occupies a dominant position, is difficult to apply to the digital economy. The reason is simple: most digital platforms offer products to the consumers located in different parts of China, rather than in a precise geographical area. This study examines how the European Union and China regulate anti-competitive practices in their respective digital economies. The European Union and China are chosen as the subject of study because they are currently the most active and the most advanced in institutionalizing the antitrust regulatory framework for the digital economy. They have different political systems: while the twenty-seven Member States of the EU are democracies, China is an authoritarian state. This raises many questions. For example, do China and the EU face the same challenges in legislating the antitrust-related issues? Do they fight unfair competition in the same way? This is where the originality of this article lies: by analysing the antitrust regulations of countries where the state-market power relations differs, this article can clarify on the future development of the antitrust regulation in the world’s major digital economies. Among other things, it asks whether countries with different political regimes are likely to fight unfair competition in the same way. If so, the similarity of regulatory objectives could provide a solid basis for building an international regulatory framework of the digital economy.
Topic:
Regulation, Digital Economy, and Antitrust Law
Political Geography:
China and Europe