The cost of being landlocked : logistics costs and supply chain reliability
AbstractA large proportion of the least developed countries are landlocked and their access to world markets depends on the availability of a trade corridor and transit systems. Based on empirical evidence from World Bank projects and assessments in Africa, Central Asia, and elsewhere, this paper proposes a microeconomic quantitative description of logistics costs. The paper theoretically and empirically highlights that landlocked economies are primarily affected not only by a high cost of freight services but also by the high degree of unpredictability in transportation time. The main sources of costs are not only physical constraints but widespread rent activities and severe flaws in the implementation of the transit systems, which prevent the emergence of reliable logistics services. The business and donor community should push toward implementation of comprehensive facilitation strategies, primarily at the national level, and the design of robust and resilient transport and transit regimes. A better understanding of the political economy of transit and a review of the implementation successes and failures in this area are needed.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 4258.
Date of creation: 01 Jun 2007
Date of revision:
Transport Economics Policy&Planning; Transport and Trade Logistics; Common Carriers Industry; Economic Theory&Research; Rural Roads&Transport;
Other versions of this item:
- Jean-François Arvis & Gaël Raballand & Jean-François Marteau, 2010. "The Cost of Being Landlocked : Logistics Costs and Supply Chain Reliability," World Bank Publications, The World Bank, number 2489.
- NEP-AFR-2007-06-30 (Africa)
- NEP-ALL-2007-06-30 (All new papers)
- NEP-DEV-2007-06-30 (Development)
- NEP-INT-2007-06-30 (International Trade)
- NEP-SEA-2007-06-30 (South East Asia)
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.:
- MacKellar, Landis & Woergoetter, Andreas & Woerz, Julia, 2000. "Economic Development Problems of Landlocked Countries," Transition Economics Series 14, Institute for Advanced Studies.
- W. J. Baumol & H. D. Vinod, 1970. "An Inventory Theoretic Model of Freight Transport Demand," Management Science, INFORMS, vol. 16(7), pages 413-421, March.
- Raballand, Gael & Kunth, Antoine & Auty, Richard, 2005. "Central Asia's transport cost burden and its impact on trade," Economic Systems, Elsevier, vol. 29(1), pages 6-31, March.
- Naudé, Wim & Matthee, Marianne, 2012. "Do Export Costs Matter in Determining Whether, When, and How Much African Firms Export?," Working Papers 38, JICA Research Institute.
- Jean-François Arvis & Robin Carruthers & Graham Smith & Christopher Willoughby, 2011. "Connecting Landlocked Developing Countries to Markets : Trade Corridors in the 21st Century," World Bank Publications, The World Bank, number 2286.
- Maur, Jean-Christophe, 2008. "Regionalism and trade facilitation : a primer," Policy Research Working Paper Series 4464, The World Bank.
- Ranganathan, Rupa & Foster, Vivien, 2011. "East Africa's infrastructure : a regional perspective," Policy Research Working Paper Series 5844, The World Bank.
- Kgare, Tshepo & Raballand, Gael & Ittmann, Hans W., 2011. "Cargo dwell time in Durban : lessons for Sub-Saharan African ports," Policy Research Working Paper Series 5794, The World Bank.
- Hoekman, Bernard, 2011. "Changing Developing Country Trade Policies and WTO Engagement," CEPR Discussion Papers 8210, C.E.P.R. Discussion Papers.
- Vaqar, Ahmed & Ghulam, Samad, 2011. "Trade facilitation for economic corridors in South Asia: the perspective of Pakistan," MPRA Paper 31368, University Library of Munich, Germany.
- Ranganathan, Rupa & Foster, Vivien, 2011. "ECCAS's infrastructure : a regional perspective," Policy Research Working Paper Series 5857, The World Bank.
- Ranganathan, Rupa & Foster, Vivien, 2011. "ECOWAS's infrastructure : a regional perspective," Policy Research Working Paper Series 5899, The World Bank.
- Helble, Matthias & Shepherd, Ben & Wilson, John S., 2007. "Transparency, trade costs, and regional integration in the Asia Pacific," Policy Research Working Paper Series 4401, The World Bank.
- Hlavac, Marek, 2010. "Economic Development in Pre-Independence Botswana, 1820-1966: Historical Trends, Contributing and Countervailing Factors," MPRA Paper 26026, University Library of Munich, Germany.
- Richard Pomfret & Patricia Sourdin, 2008.
"Why Do Trade Costs Vary?,"
School of Economics Working Papers
2008-08, University of Adelaide, School of Economics.
- Richard Pomfret & Patricia Sourdin, 2010. "Why do trade costs vary?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 146(4), pages 709-730, December.
- Bianka Dettmer & Andreas Freytag & Peter Draper, 2013. "Check-in, departure and arrival times: Air cargo in Southern Africa?," Jena Economic Research Papers 2013-018, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- World Bank, 2012. "Reshaping Economic Geography of East Africa : From Regional to Global Integration (Vol. 1 of 2)," World Bank Other Operational Studies 11930, The World Bank.
- Raballand, Gael & Kunaka, Charles & Giersing, Bo, 2008. "The impact of regional liberalization and harmonization in road transport services : a focus on Zambia and lessons for landlocked countries," Policy Research Working Paper Series 4482, The World Bank.
- Portugal-Perez, Alberto & Wilson, John S., 2009.
"Why trade facilitation matters to Africa,"
World Trade Review,
Cambridge University Press, vol. 8(03), pages 379-416, July.
- Chandra, Vandana & Osorio Rodarte, Israel, 2009. "Options for Income-Enhancing Diversification in Burkina Faso," MPRA Paper 20928, University Library of Munich, Germany.
- Friberg, R & Tinn, K, 2013. "Holdup and Comparative Advantage," Working Papers 12193, Imperial College, London, Imperial College Business School.
- Basarab Gogoneata, 2008. "An analysis of explanatory factors of logistics performance of a country," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 10(24), pages 143-156, June.
- Ranganathan, Rupa & Foster, Vivien, 2011. "The SADC's infrastructure : a regional perspective," Policy Research Working Paper Series 5898, The World Bank.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).
If references are entirely missing, you can add them using this form.