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| Interaction Between Value and Risk of Cross-Border Data Flow Studied Through Dynamic Simulations |
| Lu Can1,2,3, Gao Hui4, Yang Jianlin1,2,3 |
1.School of Information Management, Nanjing University, Nanjing 210023 2.Key Laboratory of Data Engineering and Knowledge Services in Provincial Universities (Nanjing University), Nanjing 210023 3.National Security Development Research Institute of Nanjing University, Nanjing 210023 4.School of Government, Nanjing University, Nanjing 210023 |
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Abstract Analyzing the interaction between the risks and values of cross-border data flow is crucial for identifying the measures to maintain data sovereignty and promote digital economic development. In this study, data value chain theory was employed to analyze the value realization pathways of cross-border data flow and identify the associated risks. Subsequently, a “Value-Risk” dual unified simulation model was constructed using system dynamics. Finally, a multi-scenario analysis was conducted by simulating a complex real-world situation through a combination of technical, commercial, and government-related factors. This study revealed that the interaction between values and risks of cross-border data flow exhibits high-value, high-risk characteristics with increasing interaction intensity over time, which significantly impacts the cross-border data flow industry. Based on the multi-scenario analysis, expanding technological investment and engaging in technological competition can achieve a rapid increase in value but may also lead to increased risks in the absence of regulatory oversight. Active integration into the global data ecosystem can steadily promote the rise of value and reduce risks over the long term, by enhancing the right to formulate rules, encouraging private innovation while achieving effective regulation, and improving public data literacy, which makes it more suitable as a national strategy in promoting the medium and long term development of cross-border data flow industry.
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Received: 22 November 2024
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