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Road freight logistics, competition, and innovation : downstream benefits and policy implications

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Author Info
Dutz, Mark
Abstract

This empirical paper sheds light on a significant element of the debate of whether infrastructure services have a strong impact on economic development by exploring the impact of innovative road freight services on downstream business users. The paper uses a new and purpose-specific survey of 165 logistics service providers and 493 user enterprises in food processing, food distribution, and the automotive industry in the Czech Republic, Hungary, and Poland. The main findings are that there are substantial downstream benefits from innovations in road freight services, both dampening cost increases and raising sales revenues of business users. The additional finding that increased intensity of competition in road freight services is significantly associated with the provision of innovative services suggests that easing any remaining barriers to competition in upstream business sectors should be a priority.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3768.

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Date of creation: 01 Nov 2005
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Handle: RePEc:wbk:wbrwps:3768

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Related research
Keywords: Municipal Financial Management; ICT Policy and Strategies; Private Participation in Infrastructure; Business in Development; Business Environment;

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  1. Dutz, Mark A. & Ordover, Janusz A. & Willig, Robert D., 2000. "Entrepreneurship, access policy and economic development: Lessons from industrial organization," European Economic Review, Elsevier, vol. 44(4-6), pages 739-747, May. [Downloadable!] (restricted)
  2. Dutz, Mark A. & Hayri, Aydin & Ibarra,Pablo, 2000. "Regulatory reform, competition, and innovation - a case study of the Mexican road freight industry," Policy Research Working Paper Series 2318, The World Bank. [Downloadable!]
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