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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
    1. Jie Bai & Maggie Chen & Daniel Xu, 2018. "Search and Information Frictions on Global E-Commerce Platforms: Evidence from Aliexpress," Working Papers 18-17, NET Institute.
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    3. Olarreaga, Marcelo & Lendle, Andreas & Vezina, Pierre-Louis & Schropp, Simon, 2012. "There goes gravity: how eBay reduces trade costs," CEPR Discussion Papers 9094, C.E.P.R. Discussion Papers.
    4. Yeats, Alexander J., 1998. "Just how big is global production sharing?," Policy Research Working Paper Series 1871, The World Bank.
    5. World Bank, 2020. "World Development Report 2020," World Bank Publications - Books, The World Bank Group, number 32437.
    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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