The business, economic and policy implications of e-commerce: Lessons for MENA countries

The Business, Economic, and Policy Implications of E-Commerce: Lessons for MENA Countries, by Imad Moosa, identifies the likely effects of the development of e-commerce on the countries of the region. The author disaggregates these effects into the institutional and organizational changes that are required in terms of: networked firms and consumers, interactive markets, advertising, consumer search, product choice and pricing, and the emergence of new competitive, product, price, and communication strategies. He then underlines the economic effects of e-commerce in terms of output, prices, productivity, and interaction with a more globalized world. The author also points out some of the illusions pertaining to the impact of the ?new economy? animated by the spectacular developments in the Internet, informatics, and telecommunications services. He argues that the potential increase in productivity generated by the ?new economy? has been exaggerated. The policy implications of the development of e-commerce cover a wide range of areas, notably, technology, trade, regulation, society, finance, and the relationship between government and business. All these implications are important for MENA countries, but the best lesson for the countries of the region, Moosa argues, is that e-commerce is not a magic cure for their economic problems.