1945

Cross-border e-commerce as a new driver of exports

The rapid growth of cross-border electronic commerce (e-commerce) has the potential to change traditional trade patterns in Latin America and the Caribbean, where, merchandise exports are concentrated in a small number of generally large firms that trade with just two or three markets. Moreover, the survival rate of exporting firms in the region is low: most of them —especially in the case of small and medium-sized enterprises (SMEs)— do not last longer than one year (Urmeneta, Park and Mulder, 2018). The rapid spread of the Internet and other digital platforms is drastically reducing international transaction costs, including those of communication, coordination and transport, while the trade enabled by these platforms brings buyers and sellers closer together and makes previously unattainable foreign markets accessible.

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