E-Commerce and International Trade: The Case for Indonesia and Malaysia

Seema Narayan

Emerging Markets Finance and Trade, 2025, vol. 61, issue 9, 2616-2642

Abstract: We examine the relationship between the e-commerce and merchandise exports of Indonesia and Malaysia to their 200 or more trading partners over 2014–2020. E-commerce is examined as: (i) a global trend in the e-commerce transition, measured as the total e-commerce sales as a percentage of total retail sales, and (ii) the e-commerce ranking of the exporting and importing nations. Our findings suggest that the global transition toward e-commerce and an increase in the e-commerce ranking of Indonesia and Malaysia benefits the exports of both nations, but a higher e-commerce ranking of the trading partner countries adversely affects exports in Indonesia and Malaysia. We also check the mediating role of e-commerce for the supply chain-exports relationship and discover that the growth of e-commerce may have been partially responsible for the supply chain disruptions in Indonesia and Malaysia.

Date: 2025
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DOI: 10.1080/1540496X.2025.2461244

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