THE ROLE OF TRADE FACILITATION IN DRIVING MSME EXPORT GROWTH: AN ASEAN EMPIRICAL STUDY

Abstract

Micro, small, and medium enterprises (MSMEs) play a significant role in Southeast Asia's economic landscape. They
account for a substantial portion of total establishments and employment, making them a vital component of the
region's economy. This paper explores the multifaceted contributions of MSMEs in Southeast Asia, focusing on their
economic, political, and social significance. These enterprises are instrumental in addressing key socio-economic
challenges, particularly in countries like Indonesia, Myanmar, the Philippines, Lao PDR, Cambodia, and Vietnam,
where poverty and income inequality persist. By providing livelihoods and income opportunities, MSMEs actively
participate in poverty alleviation and income distribution improvement. Moreover, they serve as a driving force for
labor-intensive manufacturing and non-primary commodity exports, contributing to economic growth.
Furthermore, MSMEs support rural economic development and foster local entrepreneurship, with a particular
emphasis on empowering rural women. By analyzing the multifaceted contributions of MSMEs in Southeast Asia,
this study provides insights into their pivotal role in socio-economic progress and the prospects for future growth
and development