Logistics costs and competitiveness: measurement and trade policy applications
This paper examines the issue of measuring logistics costs from an applied trade policy research perspective, as well as identifying logistics-intensive sectors. It focuses on currently available data at the macro- and firm-levels. Data sources considered include national accounts, national input-output tables, the International Comparison Project, firm-level data, and production and trade data. Although current data exhibit a number of weaknesses compared with “custom” logistics costs data—notably in terms of sectoral definition—they nonetheless make it possible to conduct some preliminary empirical analysis that can inform future measurement efforts. First, the paper finds that there is little systematic evidence of a link between the size of the logistics sector and economic outcomes, such as trade openness. Second, the relationship between the size of the logistics sector and logistics performance is non-monotonic. Third, the size of the logistics sector only increases in per capita income up to a certain point, before the relationship turns negative. These findings suggest that measures of sectoral size—such as logistics costs relative to GDP—may be of limited use to researchers and policymakers because they do not have an unambiguous interpretation in terms of performance or economic outcomes. Fourth, however, direct indicators of price and performance are more clearly related to economic outcomes, and have a more straightforward relation with per capita income. The emphasis going forward should therefore be on compiling data that capture logistics performance most accurately, rather than sector size. Finally, the paper uses input-output data to identify logistics-intensive sectors, and finds suggestive evidence that improvements in logistics performance could lead to sectoral reallocations in favor of relatively heavy industries in developing countries, which is consistent with the goal of export diversification.
|Date of creation:||03 Nov 2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
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.:
- Bernard Hoekman & Alessandro Nicita, 2010. "Assessing the Doha Round: Market access, transactions costs and aid for trade facilitation," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 19(1), pages 65-79.
- Chen, Natalie & Novy, Dennis, 2011. "Gravity, trade integration, and heterogeneity across industries," Journal of International Economics, Elsevier, vol. 85(2), pages 206-221.
- John S. Wilson & Catherine L. Mann & Tsunehiro Otsuki, 2005. "Assessing the Benefits of Trade Facilitation: A Global Perspective," The World Economy, Wiley Blackwell, vol. 28(6), pages 841-871, 06.
- Yann Duval & Chorthip Utoktham, 2011.
"Intraregional Trade Costs in Asia: A Primer,"
Asia-Pacific Development Journal,
United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 18(2), pages 1-23, December.
- Dollar, David & Hallward-Driemeier, Mary & Mengistae, Taye, 2004.
"Investment climate and international integration,"
Policy Research Working Paper Series
3323, The World Bank.
- Olper, Alessandro & Raimondi, Valentina, 2007.
"Patterns And Determinants Of International Trade Costs In The Food Industry,"
2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN
9799, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Alessandro Olper & Valentina Raimondi, 2009. "Patterns and Determinants of International Trade Costs in the Food Industry," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(2), pages 273-297.
- Alessandro Olper & Valentina Raimondi, 2007. "Patterns and Determinants of International Trade Costs in the Food Industry," LICOS Discussion Papers 18807, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
- Shepherd, Ben, 2009. "Speed Money: Time, Corruption, and Trade," MPRA Paper 17337, University Library of Munich, Germany.
- Miroudot, Sébastien & Sauvage, Jehan & Shepherd, Ben, 2010.
"Measuring the Cost of International Trade in Services,"
27655, University Library of Munich, Germany.
- Miroudot, Sébastien & Sauvage, Jehan & Shepherd, Ben, 2013. "Measuring the cost of international trade in services," World Trade Review, Cambridge University Press, vol. 12(04), pages 719-735, October.
- H. Brooks, Douglas & Ferrarini, Benno, 2010. "Changing Trade Costs between People’s Republic of China and India," ADB Economics Working Paper Series 203, Asian Development Bank.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:38254. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.