Studies in Trade and Investment: The Development Impact of Information Technology in Trade Facilitation

Abstract

In Bangladesh, SMEs are very important players in the economy. About 90 per cent of all industrial units in Bangladesh are SMEs, which generate some 25 per cent of the gross domestic product (GDP), employ about 31 million people and provide 75 per cent of household income. There is no denying that SMEs act as the driver of the economy and are very important for national economic and social development. They serve as employers creating new jobs and providers of products for daily needs. They also act as stewards over employees and the community. However, SMEs in developing and least developed countries face considerable barriers in running their businesses and are often constrained financially and technologically. This includes inadequate and/or complex sets of policies by the respective governments. Such impediments largely contribute to the under-involvement of SMEs in international markets. This is where the nature and extent of SME participation in the global trading system needs to be highlighted. Trade facilitation is thus a crucial factor in providing SMEs with access to global markets.Trade facilitation, ICT, IT, SMEs, international trade, Bangladesh