MICROFINANCE PAPER WRAP-UP: Asian Development Bank (ADB): “Embracing the E-commerce Revolution in Asia and the Pacific”

This is a summary of a paper published by the Asian Development Bank (ADB), June 2018, 101 pages, available at:
https://www.adb.org/sites/default/files/publication/430401/embracing-e-commerce-revolution.pdf.

Based on research conducted by ADB and the UN’s Economic and Social Commission for Asia and the Pacific (ESCAP), this report lays out a framework for gauging the development of electronic commerce (e-commerce) markets in the Asia-Pacific region. The goal is to answer the following question: “How can the e-commerce industry and market be developed and grown to deliver positive social and economic outcomes in Asia and the Pacific?”

The framework comprises three sets of factors that influence e-commerce markets:

1. Economic factors: To measure the Internet’s “attractiveness” for buying and selling goods and services, the authors suggest indicators such as electronic payment systems development, Internet bandwidth availability, prices for wireless network access, and usage rates of credit and debit cards.

2. Legal and institutional factors: This dimension includes the regulations that govern the e-commerce market, such as consumer protection laws, cybercrime laws, and data protection and privacy laws – as well as the extent to which these laws are enforced.

3. Social factors: This set of metrics addresses how firms and consumers incorporate e-commerce into their business operations and purchasing behavior, respectively. Regarding enterprises, how much do the owners and managers understand about how e-commerce can reduce inventory costs, enable greater customer outreach and help achieve economies of scale? From the consumer’s perspective, key factors include understanding the breadth of products and services available via the Internet, one’s own level of computer literacy, and awareness of the risks of sharing financial information online.

By Nicholas Galimberti, Research Associate

Sources and Additional Resources

“Embracing the E-commerce Revolution in Asia and the Pacific”
https://www.adb.org/sites/default/files/publication/430401/embracing-e-commerce-revolution.pdf

ADB homepage
https://www.adb.org

ESCAP homepage
https://www.unescap.org

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