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BRIEF August 27, 2019

Promoting E-Commerce in Georgia

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Policy Issue:

There are at least two competing theories on how ICT adoption can impact existing enterprises. First, ICT adoption is skewed in favor of well-endowed, formalized firms who can pay for the fixed-cost investments in these technologies and absorb the risk of uncertain returns. Second, ICT adoption could allow smaller firms to break into new markets where they have comparative advantages but where they are unknown due to high search costs. For example, a niche hotel that provides superior services but was never featured in travel guides could find itself a new customer base through getting itself onto well-known travel websites.

This study assesses the impact of a training program that induces SMEs to adopt broadband connections and supports them (with training and consulting) in establishing presence on online retail to potentially export their goods or services.