GLOBAL E-COMMERCE IS INCREASING WITH THE DEVELOPING ECONOMIES

It is estimate the information technology (IT) industry is one of the world's largest industries and accounts for 22 per cent of developing countries' exports in e-commerce development. The UNCTAD secretariat undertook a survey of the most important IT companies in order to explore the role that foreign investment in the IT industry can play in facilitating the adoption of e-commerce development business by the local business sector in developing countries and more generally the potential contribution of the IT industry to economic growth. The 35 respondent companies had a cumulative turnover of $413 billion.

While this number represents half of worldwide IT production, it includes revenue from sources other than IT, because many of the companies are in different sectors and do not report or disclose their turnover from IT products separately. The survey showed that IT companies are comparatively heavy users of e-commerce. Many of the subsidiaries of the IT companies in the developing countries are also using e-mail and have a website, but comparatively few engage in more complex e-commerce application business operations such as offering online catalogues, receiving online orders and handling online payments. The great majority of respondents reported that e-commerce application development had facilitated the set-up and operation of developing countries' ventures. IT investment from multinationals might make an important contribution to increasing e-commerce in these countries, boosting data traffic on the Internet and hence potentially that bringing about cost reductions in telecommunication services.