Tuvalu faces relatively higher barriers for the growth of its digital economy relative to other Pacific Island countries (see eTReady of Solomon Islands, Samoa and Vanuatu). Apart from geographical challenges of being remote and isolated from global markets, the small population reduces the potential to develop a market-driven ICT infrastructure, hindering the development of a mature e-commerce ecosystem via private sector investments. Moreover, low levels of human capital and productive capacities, high levels of economic vulnerability, and lack of economies of scale act as additional barriers to business and e-business development. On the other hand, the country can count on its popular domain name, which generates revenues equivalent to around one-third of the country's exports.

Countries: Tuvalu
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