RESEARCH AND ANALYSIS: WORKING PAPERS

International trade and cyber-readiness: A review of micro, small and medium-sized enterprise (MSME) perception and practice

With the continuing trend of digitalization and its impacts on international trade participation of firms, this paper considers how cyber-readiness impacts trade participation rates, especially of micro-, small- and medium-sized enterprises (MSMEs). First, the paper seeks to define what cyber-readiness is, exploring the multiple components that support MSME digitalization and digital transformation including digital security.

Disclaimer

This is a working paper, and hence it represents research in progress. The opinions expressed in this paper are those of the authors. They do not 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 authors.

The paper then presents the results of a 2023 survey of businesses and policymakers that previously engaged with the International Telecommunication Union on how cyber-readiness is viewed by these groups. Lastly, the paper builds a cyber-readiness score to explore how this concept could be tested against trade participation. Although no correlation was found between the constructed index and international trade by either MSMEs or large firms, a positive correlation emerged between the cyber-readiness score and MSME productivity.

 

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Staff Working Paper

Research ERSD-2026-05

Manuscript date

September 2026

Author(s)

Kathryn Lundquist, Rahul Jha, Reetuparna Vishwanath, Chi Pok Cheang

Keywords

Cyber-readiness, cybersecurity, digitalization, digital transformation, small and medium-sized enterprises, MSMEs, firm productivity, trade participation, international trade, firm-level survey

JEL classification numbers

F14, L25, M21, O33