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B2B e-commerce marketplaces and MSMES: Evidence of global value chain facilitation?

Author

Listed:
  • Ladrière, Maxime
  • Lundquist, Kathryn
  • Ye, Qing

Abstract

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.

Suggested Citation

  • Ladrière, Maxime & Lundquist, Kathryn & Ye, Qing, 2022. "B2B e-commerce marketplaces and MSMES: Evidence of global value chain facilitation?," WTO Staff Working Papers ERSD-2022-7, World Trade Organization (WTO), Economic Research and Statistics Division.
    • Handle: RePEc:zbw:wtowps:ersd20227
    DOI: 10.30875/25189808-2022-7
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    References listed on IDEAS

    as
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    5. World Bank, 2020. "World Development Report 2020," World Bank Publications - Books, The World Bank Group, number 32437, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Micro; Small and Medium Sized Enterprise (MSME); SME; e-commerce; marketplaces; global value chains (GVC);
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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