IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/4258.html
   My bibliography  Save this paper

The cost of being landlocked : logistics costs and supply chain reliability

Author

Listed:
  • Arvis, Jean-Francois
  • Raballand, Gael
  • Marteau, Jean-Francois

Abstract

A 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.

Suggested Citation

  • Arvis, Jean-Francois & Raballand, Gael & Marteau, Jean-Francois, 2007. "The cost of being landlocked : logistics costs and supply chain reliability," Policy Research Working Paper Series 4258, The World Bank.
  • Handle: RePEc:wbk:wbrwps:4258
    as

    Download full text from publisher

    File URL: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2007/06/15/000016406_20070615150019/Rendered/PDF/wps4258.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. MacKellar, Landis & Woergoetter, Andreas & Woerz, Julia, 2000. "Economic Development Problems of Landlocked Countries," Transition Economics Series 14, Institute for Advanced Studies.
    2. 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.
    3. Gallup, John & Sachs, Jeffrey, 1999. "Geography and Economic Development," Harvard Institute for International Development (HIID) Papers 294434, Harvard University, Kennedy School of Government.
    4. 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.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gaël Raballand, 2003. "Determinants of the Negative Impact of Being Landlocked on Trade: An Empirical Investigation Through the Central Asian Case," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 45(4), pages 520-536, December.
    2. Burgoa, Rodrigo, 2011. "Consecuencias económicas del enclaustramiento marítimo sobre las exportaciones bolivianas [Landlockedness Economic Impact upon Bolivian Exports]," MPRA Paper 59904, University Library of Munich, Germany.
    3. Sandra Poncet, 2006. "Economic Integration of Yunnan with the Greater Mekong Subregion," Asian Economic Journal, East Asian Economic Association, vol. 20(3), pages 303-317, September.
    4. Delgadillo Chavarria, Carlos Bruno, 2019. "El Efecto de la Mediterraneidad sobre el Flujo Comercial Internacional: Evidencia Empírica Internacional y para América del Sur (1990-2016) [The Effect of Landlocked Country Status on International," MPRA Paper 96294, University Library of Munich, Germany, revised 10 Sep 2019.
    5. Roger Alejandro Banegas Rivero & Marco Alberto Nuñez Ramirez & Jorge Salas Vargas & Luis Fernando Escobar Caba & Sacnicté Valdez del Río, 2019. "Landlocked Countries, Natural Resources and Growth: The Double Economic Curse Hypothesis," International Journal of Energy Economics and Policy, Econjournals, vol. 9(5), pages 113-124.
    6. Oxana Babecká Kucharčuková & Jan Babecký & Martin Raiser, 2012. "Gravity Approach for Modelling International Trade in South-Eastern Europe and the Commonwealth of Independent States: The Role of Geography, Policy and Institutions," Open Economies Review, Springer, vol. 23(2), pages 277-301, April.
    7. William Byrd & Martin Raiser, 2006. "Economic Cooperation in the Wider Central Asia Region," World Bank Publications, The World Bank, number 6969, June.
    8. Delgadillo Chavarria, Carlos Bruno, 2019. "El Efecto de la Mediterraneidad sobre el Flujo Comercial Internacional: Evidencia Empírica Internacional y para América del Sur (1990-2016) [The Effect of Landlocked Country Status on International," MPRA Paper 96093, University Library of Munich, Germany, revised 10 Sep 2019.
    9. Normizan Bakar, 2013. "Optimal transport and trade policy under Bertrand competition in the presence of restricted geographical condition," International Conference on Energy, Regional Integration and Socio-economic Development 6004, EcoMod.
    10. Sen, S. K. & Mukhopadhyay, I & Gupta, S, 2011. "A Game Theoretic Analysis of a Regional Approach toward the Sustainability of Kolkata-Agartala Transit Route," MPRA Paper 39118, University Library of Munich, Germany.
    11. Jan Fagerberg & Bengt-Åke Lundvall & Martin Srholec, 2018. "Global Value Chains, National Innovation Systems and Economic Development," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 533-556, July.
    12. Sylvie Démurger & Jeffrey D. Sachs & Wing Thye Woo & Shuming Bao & Gene Chang & Andrew Mellinger, 2002. "Geography, Economic Policy, and Regional Development in China," Asian Economic Papers, MIT Press, vol. 1(1), pages 146-197.
    13. María Ayuda & Fernando Collantes & Vicente Pinilla, 2010. "From locational fundamentals to increasing returns: the spatial concentration of population in Spain, 1787–2000," Journal of Geographical Systems, Springer, vol. 12(1), pages 25-50, March.
    14. Chasco, Coro & López, Ana María & Guillain, Rachel, 2008. "The non-stationary influence of geography on the spatial agglomeration of production in the EU," MPRA Paper 10737, University Library of Munich, Germany.
    15. Joshua C. Hall, Serkan Karadas and Minh Tam T. Schlosky, 2018. "Is There Moral Hazard in the Heavily Indebted Poor Countries (HIPC) Initiative Debt Relief Process?," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 43(3), pages 1-24, September.
    16. Rodríguez-Pose, Andrés & Tselios, Vassilis & Winkler, Deborah & Farole, Thomas, 2013. "Geography and the Determinants of Firm Exports in Indonesia," World Development, Elsevier, vol. 44(C), pages 225-240.
    17. Rode, Martin & Gwartney, James D., 2012. "Does democratization facilitate economic liberalization?," European Journal of Political Economy, Elsevier, vol. 28(4), pages 607-619.
    18. Litina, Anastasia, 2012. "Unfavorable land endowment, cooperation, and reversal of fortune," MPRA Paper 39702, University Library of Munich, Germany.
    19. Ola Olsson, 2005. "Geography and institutions: Plausible and implausible linkages," Journal of Economics, Springer, vol. 10(1), pages 167-194, December.
    20. Melissa Dell & Benjamin F. Jones & Benjamin A. Olken, 2014. "What Do We Learn from the Weather? The New Climate-Economy Literature," Journal of Economic Literature, American Economic Association, vol. 52(3), pages 740-798, September.

    More about this item

    Keywords

    Transport Economics Policy&Planning; Transport and Trade Logistics; Common Carriers Industry; Economic Theory&Research; Rural Roads&Transport;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:4258. 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: (Roula I. Yazigi). General contact details of provider: http://edirc.repec.org/data/dvewbus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.