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Logistics in Lagging Regions : Overcoming Local Barriers to Global Connectivity

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  • Charles Kunaka
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    Abstract

    This report is based on two case studies carried out in Brazil and India on the impact of various strategies to reduce the cost of trade for small-scale producers. Small scale producers especially those located in lagging regions in developing countries lack easy access to efficient logistics services. They are faced with long distances from both domestic and international markets. Unless the enterprises are able to consolidate traffic volumes they can be excluded from international supply chains. However, the process of consolidation is not without cost nor does it occur on its own accord. It is typically handled by outside parties in the form of intermediaries. The study was designed around the horizontal relationships between the small scale producers and their vertical connections to higher tier parties involved in the same supply chain. It analyzes the cooperative approach to linking producers, the role of itinerant traders, and a newer and innovative approach to the same problem through virtual integration of farmers using modern information communication technologies. These approaches were explored by studying two separate supply chains, sisal in Brazil and soybean in India, enabling the assessment of logistics patterns from the farm gate to onboard vessel at the export gateway. The assessment of logistics performance at the sub-national level is still evolving. The more widely used density-type indicators emphasize the infrastructure dimension of logistics but do not handle effectively the relationships and service quality attributes identified by the study. A model built around spatial and social networks is proposed to represent the horizontal and vertical attributes of logistics in lagging regions.

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    File URL: https://openknowledge.worldbank.org/bitstream/handle/10986/2543/588520PUB0Logi101public10BOX353816B.pdf?sequence=1
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    Bibliographic Info

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    This book is provided by The World Bank in its series World Bank Publications with number 2543 and published in 2011.

    ISBN: 978-0-8213-8649-1
    Handle: RePEc:wbk:wbpubs:2543

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    Related research

    Keywords: Private Sector Development - E-Business Technology Industry Macroeconomics and Economic Growth - Markets and Market Access Transport Economics Policy and Planning Macroeconomics and Economic Growth - Regional Economic Development Industry Transport;

    References

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    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    1. Marcel Fafchamps & Ruth Vargas Hill, 2005. "Selling at the Farmgate or Traveling to Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(3), pages 717-734.
    2. Gonzalez, Julio A. & Guasch, Jose Luis & Serebrisky, Tomas, 2008. "Improving logistics costs for transportation and trade facilitation," Policy Research Working Paper Series 4558, The World Bank.
    3. Amiot, Francois & Salama, Ovadia, 1996. "Logistical constraints on international trade in the Maghreb," Policy Research Working Paper Series 1598, The World Bank.
    4. Lall, Somik V. & Timmins, Christopher & Yu, Shouyue, 2009. "Connecting lagging and leading regions : the role of labor mobility," Policy Research Working Paper Series 4843, The World Bank.
    5. Zhang, Mingxia & Sexton, Richard J., 2000. "Captive Supplies And The Cash Market Price: A Spatial Markets Approach," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(01), July.
    6. Julia Devlin & Peter Yee, 2005. "Trade Logistics in Developing Countries: The Case of the Middle East and North Africa," The World Economy, Wiley Blackwell, vol. 28(3), pages 435-456, 03.
    7. Marcel Fafchamps & Ruth Hill, 2005. "Price Transmission and Trader Entry in Domestic Commodity Markets," Economics Series Working Papers GPRG-WPS-038, University of Oxford, Department of Economics.
    8. Gaƫl Raballand & Patricia Macchi & Carly Petracco, 2010. "Rural Road Investment Efficiency : Lessons from Burkina Faso, Cameroon, and Uganda," World Bank Publications, The World Bank, number 2425, March.
    9. John Luke Gallup & Jeffrey D. Sachs & Andrew D. Mellinger, 1998. "Geography and Economic Development," Harvard Institute of Economic Research Working Papers 1856, Harvard - Institute of Economic Research.
    10. JaeBin Ahn & Amit K. Khandelwal & Shang-Jin Wei, 2010. "The Role of Intermediaries in Facilitating Trade," NBER Working Papers 15706, National Bureau of Economic Research, Inc.
    11. Birthal, Pratap S. & Joshi, P. K. & Gulati, Ashok, 2005. "Vertical coordination in high-value commodities," MTID discussion papers 85, International Food Policy Research Institute (IFPRI).
    12. John Luke Gallup & Jeffrey D. Sachs & Andrew D. Mellinger, 1998. "Geography and Economic Development," NBER Working Papers 6849, National Bureau of Economic Research, Inc.
    13. MacKellar, Landis & Woergoetter, Andreas & Woerz, Julia, 2000. "Economic Development Problems of Landlocked Countries," Transition Economics Series 14, Institute for Advanced Studies.
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