J-PAL Southeast Asia at 10: Firms

Identifying Growth Barriers of MSMEs in E-Commerce: J-PAL affiliated researchers Jie Bai (Harvard) and Jing Cai (University of Maryland) and their coauthors Daniel Xu (Duke University), Chaikal Nuryakin (Universitas Indonesia), and Prani Sastiono (Universitas Indonesia) collaborated with a large e-commerce platform in Indonesia to conduct a pilot study to understand the importance of reducing search frictions through advertisements and coupons in increasing the visibility of MSMEs and driving demand for their products. However, preliminary findings indicated that advertising MSMEs’ products on microsites or through banners, as well as offering vouchers for price and shipping discounts, did not lead to more sales.