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

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

No ERSD-2026-05, WTO Staff Working Papers from World Trade Organization (WTO), Economic Research and Statistics Division

Abstract: 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. 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.

Keywords: Cyber-readiness; cybersecurity; digitalization; digital transformation; small and medium-sized enterprises; MSMEs; firm productivity; trade participation; international trade; firmlevel survey (search for similar items in EconPapers)
JEL-codes: F14 L25 M21 O33 (search for similar items in EconPapers)
Date: 2026
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