Modeling and policy design for promoting E-commerce in Ecuador

The purpose of this paper is to define a system dynamic model for the development of e-commerce applied the micro, small, and medium-sized enterprises of Ecuador. This model will allows us to explore and propose new policies and strategies for promoting the e-commerce in this developing country. Among the studied variables are on-line payment mechanisms and transactions security, quality of the website, and advertisement investment. The policy analysis and design implemented through system dynamics modeling is focused on increasing e-commerce transactions and customers, and improving the financial performance of e-commerce businesses in the country. The explored policies include strategies for increasing the number of Internet users, promoting the e-transactions, improving the international access to the Internet backbone, and a massive implementation of e-money.