Does Cross-border E-commerce Promote the Internationalization of SMEs in BRICS Countries?— Evidence From China and Brazil

The study aims to examine how cross-border e-commerce has influenced the internationalization of small and medium-sized enterprises (SMEs) in BRICS countries from 2008 to 2023. It places particular emphasis on China and Brazil, given their significance as representative economies within the group. A Two-Stage Least Squares model is employed to reveal that cross-border e-commerce substantially enhances the internationalization of SMEs, although the effects differ. Due to developed e-commerce infrastructure, a supportive legal environment, widespread adoption of digital payments, and sizeable investments in logistics and technology, the impact is particularly strong in China. Comparatively, Brazil faces challenges, including limited infrastructure and high tariff barriers, which hinder the potential of cross-border e-commerce to promote SMEs’ internationalization effectively. The results indicate that GDP growth supports the internationalization of SMEs in certain BRICS nations, possibly due to varying economic conditions and transitions within these economies. Internet penetration rates show a positive correlation with SMEs’ internationalization in BRICS countries, which highlighting the crucial role of digital infrastructure; while high tariffs are widely acknowledged as a major barrier, limiting SMEs’ ability to leverage cross-border e-commerce effectively. The research suggests that BRICS countries require customized policies to strengthen digital infrastructure and reduce trade barriers, enabling SMEs to reach global markets more effectively. Future studies should involve detailed analyses of each BRICS member, exploring how advancing technologies such as artificial intelligence and blockchain could further support SMEs’ internationalization through cross-border e-commerce. JEL Classification: F10, L81