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Facilitating international production networks : the role of trade logistics

  • Saslavsky, Daniel
  • Shepherd, Ben

This paper shows that networked trade in parts and components is more sensitive to the importing country's logistics performance than is trade in final goods. In the baseline specification, the difference between the two trade semi-elasticities is around 45 percent, which suggests that the effect is quantitatively important. In addition, the analysis finds that logistics performance is particularly important for trade in the Asia-Pacific region, which is exactly where the emergence of international production networks has been most pronounced over recent years. The results suggest that policymakers can support the development of international production networks by helping improve trade logistics performance.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 6224.

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Date of creation: 01 Oct 2012
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Handle: RePEc:wbk:wbrwps:6224
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  1. Shepherd, Ben & Wilson, John S., 2009. "Trade facilitation in ASEAN member countries: Measuring progress and assessing priorities," Journal of Asian Economics, Elsevier, vol. 20(4), pages 367-383, September.
  2. Mona Haddad & Ben Shepherd, 2011. "Managing Openness : Trade and Outward-oriented Growth After the Crisis," World Bank Publications, The World Bank, number 2283.
  3. 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.
  4. Persson, Maria, 2010. "Trade Facilitation and the Extensive Margin," Working Paper Series 828, Research Institute of Industrial Economics.
  5. Chahir Zaki, 2008. "Does trade facilitation matter in bilateral trade ?," Documents de travail du Centre d'Economie de la Sorbonne bla08100, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  6. Fukunari KIMURA & Ayako OBASHI, 2010. "International Production Networks in Machinery Industries: Structure and Its Evolution," Working Papers DP-2010-09, Economic Research Institute for ASEAN and East Asia (ERIA).
  7. shepherd, Ben, 2010. "Geographical Diversification of Developing Country Exports," World Development, Elsevier, vol. 38(9), pages 1217-1228, September.
  8. Portugal-Perez, Alberto & Wilson, John S., 2010. "Export performance and trade facilitation reform : hard and soft infrastructure," Policy Research Working Paper Series 5261, The World Bank.
  9. Mitsuyo Ando & Fukinari Kimura, 2003. "The Formation of International Production and Distribution Networks in East Asia," NBER Working Papers 10167, National Bureau of Economic Research, Inc.
  10. Behar, Alberto & Manners, Phil & Nelson, Benjamin, 2011. "Exports and international logistics," Policy Research Working Paper Series 5691, The World Bank.
  11. Arvis, Jean-François & Duval, Yann & Shepherd, Ben & Utoktham,Chorthip, 2013. "Trade costs in the developing world : 1995 - 2010," Policy Research Working Paper Series 6309, The World Bank.
  12. 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.
  13. Allen Dennis & Ben Shepherd, 2011. "Trade Facilitation and Export Diversification," The World Economy, Wiley Blackwell, vol. 34(1), pages 101-122, 01.
  14. Matthias Helble & Ben Shepherd & John S. Wilson, 2009. "Transparency and Regional Integration in the Asia Pacific," The World Economy, Wiley Blackwell, vol. 32(3), pages 479-508, 03.
  15. Hildegunn Kyvik Nordås & Enrico Pinali & Massimo Geloso Grosso, 2006. "Logistics and Time as a Trade Barrier," OECD Trade Policy Papers 35, OECD Publishing.
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