Exports and International Logistics

Published
2011-06-01
Journal
1 of 1Metadata
Abstract
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.Citation
“Behar, Alberto; Manners, Phil; Nelson, Benjamin. 2011. Exports and International Logistics. Policy Research working paper ; no. WPS 5691. World Bank. © World Bank. https://openknowledge.worldbank.org/handle/10986/3455 License: CC BY 3.0 IGO.”
Users also downloaded
-
-
-
Related items
Showing items related by title, author, creator and subject.
-
-
-
Follow World Bank Publications on Facebook, Twitter or Linked-In