Description: Facilitating International Production Networks : The Role of Trade Logistics

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Facilitating International Production Networks : The Role of Trade Logistics

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-elasticitie...

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Bibliographic Details
Main Authors:	Saslavsky, Daniel, Shepherd, Ben
Language:	English en_US
Published:	World Bank, Washington, DC 2013
Subjects:	AGGREGATE TRADE AGGREGATE TRADE FLOWS AGRICULTURE APPAREL APPLIED RESEARCH BARRIERS TO TRADE BENCHMARK BENEFITS OF TRADE BENEFITS OF TRADE FACILITATION BILATERAL TRADE CARRIERS CHANGES IN TRADE COMPARATIVE ADVANTAGE CUSTOMS CUSTOMS VALUE DEVELOPING COUNTRIES DEVELOPMENT POLICY ECONOMETRIC MODELING ECONOMETRIC MODELS ECONOMIC INTEGRATION ECONOMIC POLICY ECONOMIC RESEARCH ELASTICITY ELASTICITY OF TRADE EQUILIBRIUM EXPORT DIVERSIFICATION EXPORT PERFORMANCE EXPORTERS EXPORTS FINAL GOODS FREIGHT FREIGHT FORWARDERS FUTURE RESEARCH GDP GRAVITY EQUATION GRAVITY MODEL HARMONIZED SYSTEM IMPACT OF TRADE INCOME ELASTICITIES INCREASING RETURNS INDUSTRIAL ECONOMICS INPUT-OUTPUT TABLES INTERMEDIATE GOODS INTERNATIONAL ECONOMICS INTERNATIONAL PRODUCTION INTERNATIONAL TRADE INTRAREGIONAL TRADE INVENTORIES INVENTORY LOGISTICS COSTS MARKET ACCESS MEASURE OF TRADE MULTINATIONAL FIRMS NATIONAL LOGISTICS OIL PRICES OPENNESS OUTSOURCING POLITICAL ECONOMY REGIONAL INTEGRATION REGIONAL TRADE SHIPMENTS SUPPLY CHAINS TAX RATES TRADE BARRIER TRADE BARRIERS TRADE CONTEXT TRADE COSTS TRADE DATA TRADE FACILITATION TRADE FLOW DATA TRADE FLOWS TRADE INTENSITY TRADE LOGISTICS TRADE PATTERNS TRADE PERFORMANCE TRADE POLICY TRADE REGIME TRANSACTIONS COSTS TRANSPORT COSTS VALUE ADDED VALUE OF IMPORTS VERTICAL SPECIALIZATION VOLUME OF TRADE WAGE RATES WAGES WORLD TRADE
Online Access:	http://documents.worldbank.org/curated/en/2012/10/16821047/facilitating-international-production-networks-role-trade-logistics http://hdl.handle.net/10986/12061

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Summary:	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.