RESEARCH AND ANALYSIS: WORKING PAPERS
B2B E-commerce marketplaces and MSMES: evidence of Global Value Chain facilitation?
In theory, e-commerce marketplaces connect buyers and sellers, open trade opportunities, and reduce transaction costs thereby creating opportunities for more inclusive trade and even GVC participation, especially for micro, small and medium-sized enterprises (MSMEs). Further, there is some evidence that MSMEs are more likely to use e-commerce marketplaces than large firms given these websites reduce search frictions and transaction costs, which can be relatively more beneficial for smaller firms.
This discussion paper explores non-traditional data to investigate whether e-commerce marketplaces may contribute to MSME GVC participation. By looking at the development of business-to-business (B2B) e-commerce marketplaces, the gross merchandise value (GMV) of regional e-commerce marketplaces, and MSMEs' overall participation in B2B e-commerce marketplaces, descriptive statistics are gathered that contributes to the overall discussion on this topic. This discussion paper also links B2B e-commerce marketplaces with GVC facilitation through a novel approach of cataloguing these platforms' merchandise and finds that on average, roughly one third of B2B e-commerce marketplace listings are intermediate goods.
No: ERSD-2022-07
Authors: Maxime Ladrière, Kathryn Lundquist and Qing Ye
Manuscript date: February 2022
Key Words:
Micro, Small and Medium Sized Enterprise (MSME), SME, e-commerce, marketplaces, global value chains (GVC)
JEL classification numbers:
F13; L81; O30
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This is a working paper, and hence it represents research in progress. The opinions expressed in this paper are those of its author. They are not intended to represent the positions or opinions of the WTO or its members and are without prejudice to members' rights and obligations under the WTO. Any errors are attributable to the author.
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