Improving Logistics Costs for Transportation and Trade Facilitation

Access to basic infrastructure services - roads, electricity, water, sanitation - and the efficient provision of the services, is a key challenge in the fight against poverty. Many of the poor (and particularly the extreme poor) in rural communities in Latin America live on average 5 kilometers or more from the nearest paved road, which is almost twice as far as non-poor rural households. There have been major improvements in access to water, sanitation, electricity, telecommunications, ports, and airports, but road coverage has not changed much, although some effort and resources have been invested to improve the quality of road networks. This paper focuses on the main determinants of logistics costs and physical access to services and, whenever possible, provides evidence of the effects of these determinants on competitiveness, growth, and poverty in Latin American economies. The analysis shows the impact of improving infrastructure and logistics costs on three fronts - macro (growth), micro (productivity at the firm level), and poverty (the earnings of poor/rural people). In addition, the paper provides recommendations and solutions that encompass a series of policies to reduce the prevalent high logistics costs and limited access to services in Latin America. The recommendations rely on applied economic analysis on logistics and trade facilitation.

Bibliographic Details

Main Authors:	Gonzalez, Julio A., Guasch, Jose Luis, Serebrisky, Tomas
Language:	English
Published:	World Bank, Washington, DC 2008-03
Subjects:	ACCESS TO SERVICES, ACCOUNTING, ACTUAL COSTS, AD VALOREM, ADMINISTRATIVE COSTS, AGGREGATE DEMAND, AGGREGATE INVENTORY, AGRICULTURE, AIM, AIR, AIR TRANSPORT, AIRPORTS, BENCHMARKS, BEST PRACTICE, BILATERAL TRADE, BORDER CROSSING, BORDER CROSSINGS, BOTTLENECKS, BRIDGE, BUSINESS INDICATORS, BUSINESS LOGISTICS, BUSINESSES, CAPACITY BUILDING, CARGO, CELLULAR PHONES, CHAMBERS OF COMMERCE, COMMUNICATION INFRASTRUCTURE, COMPETITIVENESS, CONGESTION, CONNECTIVITY, CONSUMERS, COST -BENEFIT ANALYSIS, COST OF CAPITAL, COST-BENEFIT ANALYSIS, CUSTOM, CUSTOMS, DAYS OF INVENTORY, DEREGULATION, DEVALUATION, DISCOUNT RATE, DISTRIBUTION CENTERS, E-BUSINESS, E-MAIL, ECONOMIC ACTIVITIES, ECONOMIC ANALYSIS, ELASTICITY, ELECTRICITY, EMPLOYMENT, ENDOGENOUS VARIABLES, EXOGENOUS VARIABLES, EXPORT DEVELOPMENT, EXPORT GROWTH, EXPORTS, FINANCIAL BENEFITS, FINANCING OF INFRASTRUCTURE, FLOW OF GOODS, FLOW OF INFORMATION, FOREIGN TRADE, FREE TRADE, FREIGHT, FREIGHT FORWARDERS, GDP, GDP PER CAPITA, GLOBAL COMPETITIVENESS, GLOBAL ECONOMY, GNP, GOVERNMENT POLICY, GOVERNMENT SERVICES, GROWTH RATE, HARMONIZATION, HIGHWAY, HIGHWAY DESIGN, HIGHWAY MAINTENANCE, HIGHWAYS, HUMAN CAPITAL, HUMAN RESOURCE, HUMAN RESOURCE MANAGEMENT, IMPORT BARRIERS, IMPROVEMENTS IN ACCESS, INCOME DISTRIBUTION, INCREMENTAL BENEFITS, INDUSTRIAL PRODUCTION, INFLATION, INFORMATION TECHNOLOGY, INFRASTRUCTURE ACCESS, INFRASTRUCTURE DEVELOPMENT, INFRASTRUCTURE INVESTMENT, INFRASTRUCTURE PROJECTS, INLAND WATERWAYS, INSPECTIONS, INSURANCE, INTEREST RATE, INTERFACES, INTERNATIONAL COMPARISONS, INTERNATIONAL COMPETITION, INTERNATIONAL LOGISTICS, INTERNATIONAL TRADE, INTERNATIONALIZATION, INVENTORIES, INVENTORY, INVENTORY HOLDING COSTS, INVENTORY LEVEL, INVENTORY LEVELS, INVENTORY MANAGEMENT, LATIN AMERICAN, LAWS, LEVELS OF INVENTORIES, LIMITED ACCESS, LOGISTICS COSTS, LOGISTICS PROVIDERS, LOGISTICS SERVICE PROVIDERS, LOGISTICS SYSTEM, LOGISTICS SYSTEMS, MAINTENANCE COSTS, MANUFACTURING, MARKET ACCESS, MATERIAL, MENU, MIDDLE EAST, MIGRATION, MOVEMENT OF GOODS, NAVIGATION, NEW MARKETS, NORTH AFRICA, OUTPUT PER CAPITA, OVERVALUATION, PACKAGING, PER CAPITA INCOME, PERFORMANCE INDICATORS, POPULATION DENSITY, PORT FACILITIES, PRESENT VALUE, PRIVATE SECTOR, PRIVATE SECTOR INVESTMENT, PRIVATE SECTORS, PRODUCTION PROCESSES, PRODUCTIVITY, PUBLIC ENTERPRISES, PUBLIC POLICY, PUBLIC SERVICES, PUBLIC WORKS, QUALITY OF SERVICE, QUALITY OF TRANSPORT, RAILROADS, RAILWAYS, REGRESSION ANALYSIS, REGULATORY ENVIRONMENT, REGULATORY ENVIRONMENTS, RELIABILITY, RESULT, RESULTS, ROAD, ROAD CONDITIONS, ROAD NETWORK, ROAD SERVICES, ROAD TRANSPORT, ROAD USER, ROAD USERS, ROADS, RURAL ROADS, SAFETY, SAFETY NETS, SAHARA, SANITATION, SAVINGS, SEARCH, SENSITIVITY ANALYSIS, SERVICES INFRASTRUCTURE, SET OF STANDARD, SHIPPERS, STOCKS, STREETS, SUPPLY CHAIN, TARIFF BARRIERS, TAXATION, TECHNICAL SKILLS, TELECOM, TELECOMMUNICATION, TELECOMMUNICATIONS, TELECOMMUNICATIONS INFRASTRUCTURE, TELEPHONE, TELEPHONE LINES, TOTAL FACTOR PRODUCTIVITY, TOTAL OUTPUT, TRADE FACILITATION, TRADE FACILITATION PROCEDURES, TRADE FLOWS, TRAFFIC, TRAFFIC GROWTH, TRAFFIC LEVELS, TRANSACTION, TRANSACTION COSTS, TRANSPARENCY, TRANSPORT, TRANSPORT COSTS, TRANSPORT INFRASTRUCTURE, TRANSPORT MODES, TRANSPORT OF GOODS, TRANSPORT SERVICES, TRANSPORTATION, TRANSPORTATION NETWORK, TRANSPORTATION NETWORKS, TRANSPORTATION SYSTEM, TRAVEL TIME, TRUE, USES, VEHICLE, VEHICLE CLASSES, VEHICLE FLEET, VEHICLE OPERATING, VEHICLE OPERATION, WEB,
Online Access:	http://documents.worldbank.org/curated/en/2008/03/9077219/improving-logistics-costs-transportation-trade-facilitation https://hdl.handle.net/10986/6566
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