Enhancing SME Participation in Global Value Chains: Determinants, Challenges, and Policy Recommendations

This report studies the involvement of small and medium-sized enterprises (SMEs) in international trade, particularly global value chains (GVCs). It analyzes 10 Asian countries in order to determine SMEs’ participation in GVCs and identifies relevant obstacles. It further supplies advice to SMEs and governments for facilitating GVC participation. Report recommendations for SMEs include increasing technological capability and attracting foreign direct investment (FDI). As for governments, it recommends improving education, infrastructure, and creating an open environment for trade and FDI. The 10 countries that the report covers include Bangladesh, Cambodia, India, Indonesia, Kyrgyz Republic, Nepal, Philippines, Sri Lanka, Thailand, and Vietnam.

This piece originally appeared as Shujiro Urata, ed., “Enhancing SME Participation in Global Value Chains: Determinants, Challenges, and Policy Recommendations,” Asian Development Bank Institute (March 2021), https://www.adb.org/publications/enhancing-sme-participation-global-valu.... Copyright remains with the original holder.