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Measuring Regulatory Restrictions in Logistics Services

Author

Listed:
  • Claire HOLLWEG

    (School of Economics, University of Adelaide, Australia)

  • Marn-Heong WONG

    (Lee Kuan Yew School of Public Policy, National University of Singapore (NUS), Singapore)

Abstract

This study measures the extent of restrictions on trade in logistics services in the ASEAN+6 economies by constructing a logistics regulatory restrictiveness index for each economy that quantifies the extent of government regulations faced by logistics service providers. This is the first study of its kind to construct a regulatory index of the entire logistics sector, which includes the main modes of international transport and customs restrictions. The indices show that large differences exist in the logistics regulatory environment of ASEAN+6 economies. Many of these economies are open to trade in logistics services, while others are relatively restrictive. Malaysia, China, Indonesia, Lao PDR, the Philippines and Vietnam are the most restrictive economies of logistics services in this region. Relatively, Singapore and Australia are the most open economies for trade in logistics services, along with Japan and New Zealand. Preliminary investigations find evidence of negative relationships between logistics regulatory restrictiveness and logistics sector performance, as measured by the World Bank's Logistics Performance Index and its sub-components. These findings support that notion that a less restricted trade environment results in better performance for the logistics sector.

Suggested Citation

  • Claire HOLLWEG & Marn-Heong WONG, 2009. "Measuring Regulatory Restrictions in Logistics Services," Working Papers d017, Economic Research Institute for ASEAN and East Asia (ERIA).
  • Handle: RePEc:era:wpaper:d017
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    File URL: http://www.eria.org/ERIA-DP-2009-14.pdf
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    References listed on IDEAS

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    1. Stéphane Hallegatte & Valentin Przyluski, 2010. "The Economics of Natural Disasters," CESifo Forum, Ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 11(2), pages 14-24, July.
    2. Loayza, Norman V. & Olaberría, Eduardo & Rigolini, Jamele & Christiaensen, Luc, 2012. "Natural Disasters and Growth: Going Beyond the Averages," World Development, Elsevier, vol. 40(7), pages 1317-1336.
    3. Melecky, Martin & Raddatz, Claudio, 2011. "How do governments respond after catastrophes ? natural-disaster shocks and the fiscal stance," Policy Research Working Paper Series 5564, The World Bank.
    4. Lopez, Ramon, 2009. "Natural disasters and the dynamics of intangible assets," Policy Research Working Paper Series 4874, The World Bank.
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    Citations

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    Cited by:

    1. Shepherd, Ben & Pasadilla, Gloria, 2012. "Services as a New Engine of Growth for ASEAN, the People’s Republic of China, and India," ADBI Working Papers 349, Asian Development Bank Institute.
    2. Sebastián Sáez, 2010. "Trade in Services Negotiations : A Guide for Developing Countries," World Bank Publications, The World Bank, number 2481.
    3. World Bank Group, 2014. "Cambodia Services Trade : Performance and Regulatory Framework Assessment," World Bank Other Operational Studies 20759, The World Bank.
    4. Fukunari Kimura & Ayako Obashi, 2011. "Production Networks in East Asia : What We Know So Far," Microeconomics Working Papers 23216, East Asian Bureau of Economic Research.
    5. Ganeshan Wignaraja & Rosechin Olfindo & Wisarn Pupphavesa & Jirawat Panpiemras & Sumet Ongkittikul, 2010. "How Do FTAs Affect Exporting Firms in Thailand?," Trade Working Papers 21993, East Asian Bureau of Economic Research.
    6. Rafaelita M. Aldaba & Gloria O. Pasadilla, 2010. "The ASEAN Services Sector and the Growth Rebalancing Model," Working Papers id:2922, eSocialSciences.
    7. Aldaba, Rafaelita M. & Pasadilla, Gloria O., 2010. "The ASEAN Services Sector and the Growth Rebalancing Model," ADBI Working Papers 246, Asian Development Bank Institute.
    8. Kimura, Fukunari & Obashi, Ayako, 2011. "Production Networks in East Asia: What We Know So Far," ADBI Working Papers 320, Asian Development Bank Institute.
    9. Rosa Puertas & Luisa Martí & Leandro García, 2014. "Logistics performance and export competitiveness: European experience," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, pages 467-480.
    10. Fukunari Kimura & Ayako Obashi, 2011. "Production Networks in East Asia : What We Know So Far," Trade Working Papers 23216, East Asian Bureau of Economic Research.

    More about this item

    Keywords

    Logistics; Transport; Government Regulation; Trade; East Asia;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General

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