An Analysis of E-Commerce Exports by SMEs and Policy Implications amid the Transition to Endemic COVID-19

Youngjoo Lee ()
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Youngjoo Lee: Korea Institute for Industrial Economics and Trade

No 22/8, Research Papers from Korea Institute for Industrial Economics and Trade

Abstract: As the COVID-19 pandemic transitions to an endemic phase worldwide, the expansion of e-commerce exports is likely to continue. The strategic advantages of e-commerce exports can be leveraged to boost exports for SMEs. Promoting e-commerce exports for policy purposes requires policy development based on an understanding of the characteristics of e-commerce exports. According to surveys of SMEs, the current structure and patterns of e-commerce exports by SMEs are not well suited to capture the strategic benefits of e-commerce exports. Without policy intervention, e-commerce exporters may increase slightly in number, but it would be difficult to expect any high-performing e-commerce exporters to emerge among SMEs. The Korean government should take a distinctive policy approach to enhance the export momentum of SMEs, taking advantage of the expansion of e-commerce exports. Most of all, policy priorities should focus on equipping SMEs with greater export capabilities in the e-commerce market. While it would be better for the government to let the market do its work in areas where immediate effects are expected — such as supporting SMEs to penetrate major online marketplaces, or in areas where dedicated private players are active — from a policy perspective, it would be more effective to focus on SMEs which are interested in e-commerce exports but cannot afford the necessary investments. The government should take policy steps to create a robust ecosystem which builds a broader base for e-commerce exports and upgrades the e-commerce export structure. It can do so by increasing the number of e-commerce exporters, assisting exporters in expanding to e-commerce exports, and increasing their sales exposure to e-commerce. The government should step up policy efforts to better align e-commerce exports with offline exports, and thus scale up e-commerce exports, allowing offline SMEs to pursue exports across offline and online marketplaces.

Keywords: Online Marketplace; e-commerce Export Structure; e-commerce Market (search for similar items in EconPapers)
JEL-codes: F18 L25 (search for similar items in EconPapers)
Pages: 11 pages
Date: 2022-05-25
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