SME Competitiveness Outlook 2017
According to the International Trade Centre’s SME Competitiveness Outlook 2017 – The Region: A Door to Global Trade, deeper regional integration turns out to be a major success factor in developing multi-country value chains, which in turn raises the competitiveness of small and medium-sized enterprises (SMEs).
More significantly, this leads to a 1.25% reduction in the competitiveness gap between small and large firms. This can have substantial impacts given that this reduction represents, for example, the difference between the competitiveness gap in countries like Botswana and Ecuador and that in Eastern European countries that belong to highly competitive regional value chains.
Arancha González, Executive Director of International Trade Centre added: “Most value-chain activity takes place within regional value chains, with suppliers serving lead firms in the regional hub. This means that creating an environment that facilitates regional value chain activity is important for the inclusiveness of trade.”