Abstract
As data flows across borders become increasingly critical, governments are faced with the challenge
of governing these flows while maximizing their economic and strategic benefits. This article applies
dependency theory (Dos Santos, 1970, The American Economic Review, 60, 231-236; Wallerstein,
1974, The modern world-system i: Capitalist agriculture and the origins of the European world-economy in the
sixteenth century, University of California Press) as an analytical framework, examining how data
flows and governance systems create and reinforce dependent relationships between countries.
This framework proposes three categories of actors in the global economy: the core, periphery and
semi-periphery. Originally developed to analyse colonial and post-colonial economic relationships, this
theory can be used to examine how contemporary data governance may perpetuate global inequali-
ties through new mechanisms. In this article, we extend the dependency theory framework to the
global data economy, by analysing the evolving characteristics of the participating actors. Countries that
control key technological infrastructure, set global standards and capture the majority of economic
value from data flows can be characterized as the 'core'. Countries which serve as data sources, with
limited domestic technological capabilities and minimal value capture from their own data generation,
would be considered the 'periphery'. On the other hand, countries that are able to maintain a strate-
gic and dynamic trade and regulatory positioning, can exhibit selective participation and have growing
indigenous technological capabilities would form the 'semi-periphery'. Through this article, we seek to
apply dependency theory to analyse the global data economy and to situate India within it, highlighting
its characteristics as an actor in the semi-periphery.