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Facilitating international production networks : the role of trade logistics
 
Author:Saslavsky, Daniel; Shepherd, Ben; Collection Title:Policy Research working paper ; no. WPS 6224
Country:World; Date Stored:2012/10/11
Document Date:2012/10/01Document Type:Policy Research Working Paper
SubTopics:Common Carriers Industry; Economic Theory & Research; Free Trade; Trade Policy; Transport and Trade LogisticsLanguage:English
Region:The World RegionReport Number:WPS6224
Volume No:1 of 1  

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.

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