cover image: The Role of Cybersecurity in Economic Performance (English)

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The Role of Cybersecurity in Economic Performance (English)

24 Sep 2024

Utilizing novel data on over 10,000 disclosed cyber incidents across 190 countries and 21 industries, along with data on governments' cybersecurity commitments, this paper investigates the impact of cybersecurity on both industries' performance and macroeconomic outcomes. Specifically, employing an instrumental variable (IV) cross-country, cross-industry model with fixed effects, the study demonstrates that given an exposure level to cyber incidents, industries perform better in countries that have implemented robust national cybersecurity commitments, such as operational legal frameworks, cooperative measures, technical advancements, and capacity-building initiatives. At the macroeconomic level, the paper reveals a statistically significant negative correlation between the frequency of disclosed cyber incidents and GDP per capita in emerging economies, with more pronounced effects observed in the public sector, information and telecommunications, finance, and education industries. This research pioneers the estimation of the link between cybersecurity and economic performance, addressing the existing uncertainty regarding the returns on cybersecurity investments, particularly in developing countries. The findings underscore the critical importance of cybersecurity as firms navigate the digital era.
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Authors

Vergara Cobos,Estefania Belen, Cakir,Selcen, Mei Zahav,Hagai, Barakcin,Baran Berkay

Disclosure Date
2024/09/24
Disclosure Status
Disclosed
Doc Name
The Role of Cybersecurity in Economic Performance
Pages
25
Product Line
Advisory Services & Analytics
Published in
United States of America
Rel Proj ID
1W-The Economic Rationale Of Cybersecurity -- P178769
TF No/Name
TF0B8289-Cybersecurity Estimating Economic Benefits
Unit Owning
Infra - Chief Economist Infra (INFCE)
Version Type
Final
Volume No
1

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