E-commerce holds out enormous promises for producers in poor countries: easier access to the markets of rich countries and higher incomes resulting from these new trading opportunities.
Many studies and policy documents, however, have underestimated the obstacles to reaping these benefits. It is not just a matter of bridging the ‘digital divide’ that arises from poor telecom infrastructure and lack of computer-related skills. Only with improvements in the transport of material goods and in the institutional arrangements that facilitate trust can e-commerce accelerate economic development.
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