Facilitating International Production Networks: The Role of Trade Logistics

33 Pages Posted: 20 Apr 2016

See all articles by Daniel Saslavsky

Daniel Saslavsky

Universidad Torcuato Di Tella

Ben Shepherd

World Bank - Development Research Group (DECRG); Groupe d'Economie Mondiale (GEM) - IEP Paris

Date Written: October 1, 2012

Abstract

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.

Keywords: Free Trade, Economic Theory & Research, Trade Policy, Transport and Trade Logistics, Common Carriers Industry

Suggested Citation

Saslavsky, Daniel and Shepherd, Ben, Facilitating International Production Networks: The Role of Trade Logistics (October 1, 2012). World Bank Policy Research Working Paper No. 6224. Available at SSRN: https://ssrn.com/abstract=2160675

Daniel Saslavsky (Contact Author)

Universidad Torcuato Di Tella ( email )

Minones 2159
1428 Buenos Aires, 1428
Argentina

Ben Shepherd

World Bank - Development Research Group (DECRG) ( email )

1818 H Street NW
MSN3-311
Washington, DC 20433
United States

Groupe d'Economie Mondiale (GEM) - IEP Paris ( email )

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Paris, 75007
France

HOME PAGE: http://gem.sciences-po.fr/

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