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Trade Logistics in Developing Countries: The Case of the Middle East and North Africa

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Author Info
Julia Devlin
Peter Yee
Abstract

This paper presents an analysis of obstacles facing exporting firms in developing countries by diagnosing the efficiency of trade logistics in the Middle East and North Africa region (MNA). Using logistics chain analysis for six export commodities, it presents evidence that transport and non-transport logistics costs for export commodities from the MNA region are quite substantial, ranging from 7-25 per cent of landed product prices. Underlying these costs are key bottlenecks identified as: inefficient trucking and transport services, low export volume leading to long shipping times and the need for costly inventory accumulation, aggressive, obstructive customs authorities and procedures, low and inconsistent product quality, an underdeveloped transport intermediary sector, inefficient cross-border transit procedures and others. Recommended actions to address developing a national transport policy, overhauling the regulatory regime for the trucking sector, export promotion measures, increasing competition in port and air freight services, reorienting customs authorities towards trade facilitation and developing cross-border transit procedures similar to the TIR Carnets model. Copyright Blackwell Publishing Ltd 2005.

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Article provided by Blackwell Publishing in its journal The World Economy.

Volume (Year): 28 (2005)
Issue (Month): 3 (03)
Pages: 435-456
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Handle: RePEc:bla:worlde:v:28:y:2005:i:3:p:435-456

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  1. Richard Pomfret & Patricia Sourd in, 2008. "Why Do Trade Costs Vary?," Working Papers 2008-08, University of Adelaide, School of Economics. [Downloadable!]
  2. Dennis, Allen, 2006. "The impact of regional trade agreements and trade facilitation in the Middle East and North Africa region," Policy Research Working Paper Series 3837, The World Bank. [Downloadable!]
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