Description: Exports and International Logistics

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Exports and International Logistics

Do better international logistics reduce trade costs, raising a developing country's exports? Yes, but the magnitude of the effect depends on the country's size. The authors apply a gravity model that accounts for firm heterogeneity and m...

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Bibliographic Details
Main Authors:	Behar, Alberto, Manners, Phil, Nelson, Benjamin
Language:	English
Published:	2012
Subjects:	AD VALOREM AGGREGATE TRADE BARRIERS TO TRADE BENCHMARK BENCHMARKS BILATERAL RELATIONSHIPS BILATERAL TRADE BILATERAL TRADE DATA BORDER TRADE CHANGES IN TRADE CONSUMERS CONTAINERIZATION CROSS-BORDER TRADE CUSTOMS CUSTOMS CLEARANCE DEVELOPING COUNTRIES DEVELOPING COUNTRY EXPORTS DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DOMESTIC DEMAND DOMESTIC TRADE ECONOMIC GEOGRAPHY ECONOMIC POLICY ECONOMICS RESEARCH ELASTICITY ELASTICITY OF SUBSTITUTION ENDOGENOUS VARIABLES EQUILIBRIUM EXOGENOUS VARIABLES EXPORT COSTS EXPORT DEMAND EXPORT DOCUMENTATION EXPORT MARKET EXPORT MARKETS EXPORT PERFORMANCE EXPORTERS EXPORTS FOREIGN MARKETS FOREIGN TRADE FREIGHT FREIGHT COSTS FREIGHT FORWARDERS FUNCTIONAL FORMS GDP GENERAL EQUILIBRIUM GLOBAL ECONOMY GRAVITY EQUATION GRAVITY ESTIMATES GRAVITY FRAMEWORK GRAVITY MODEL GRAVITY MODELS IMPACT OF TRADE IMPORTING COUNTRY INCOME INDUSTRIAL PRODUCTS INTERNATIONAL BANK INTERNATIONAL ECONOMICS INTERNATIONAL TRADE LESS DEVELOPED COUNTRIES LOGISTICS COSTS MACROECONOMICS MANIFESTS MARGINAL VALUE MONETARY POLICY MONOPOLISTIC COMPETITION MULTILATERAL TRADE OCEAN FREIGHT POLICY RESEARCH PRICE INDEX REGIONAL TRADE SHIPMENTS SHIPPING SPECIALIZATION TOTAL OUTPUT TRADE BALANCE TRADE BARRIER TRADE BARRIERS TRADE COSTS TRADE DATA TRADE FACILITATION TRADE FLOWS TRADE FRICTIONS TRADE LIBERALIZATIONS TRADE LOGISTICS TRADE PATTERNS TRADE SYSTEM TRADE VOLUMES TRANSIT TRANSPORT COSTS VALUE OF IMPORTS VARIABLE COSTS WELFARE GAINS WORLD TRADE WORLD TRADE ORGANISATION
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110620085446 http://hdl.handle.net/10986/3455

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Summary:	Do better international logistics reduce trade costs, raising a developing country's exports? Yes, but the magnitude of the effect depends on the country's size. The authors apply a gravity model that accounts for firm heterogeneity and multilateral resistance to a comprehensive new international logistics index. A one-standard deviation improvement in logistics is equivalent to a 14 percent reduction in distance. An average-sized developing country would raise exports by about 36 percent. Most countries are much smaller than average however, so the typical effect is 8 percent. This difference is chiefly due to multilateral resistance: it is bilateral trade costs relative to multilateral trade costs that matter for bilateral exports, and multilateral resistance is more important for small countries.