Environmental Economics

Get The Cost of Being Landlocked: Logistics Costs and Supply PDF

By Jean-Francois Arvis, Jean-Francois Marteau, Gael Raballand

ISBN-10: 0821384082

ISBN-13: 9780821384084

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Extra resources for The Cost of Being Landlocked: Logistics Costs and Supply Chain Reliability (Directions in Development)

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4 Impact Estimate of Various Measures in a Regulated Environment Measure Rehabilitation of corridor from fair to good 20% reduction in border-crossing time 20% reduction in fuel price 20% reduction in road informal payment Change in transport costs –5% –1% –9% –1% Change in sales NS +2 to +3% NS NS Change in transport price 0% 0% 0% 0% Source: Teravaninthorn and Raballand 2008. Note: NS = No sale. The impact of any measure can be negated in a regulated environment; this applies both to a government-regulated environment and to a truckers union/cartel environment.

However, the expected impact has not materialized yet. 17. Detailed data (at shipment level) were obtained from World Bank projects that used this methodology for appraisal in East and Central Africa. 18. Christ and Ferrantino (2009) demonstrate empirically that road quality and road uncertainty are close substitutes for each other, in the sense that improving either yields payoff rewards of comparable magnitude for the exporter. 19. Azevedo and Ferreira (2007) demonstrate that the logistics area that seems to have the highest impact on firms’ performance is inventory control.

22. Border-crossing improvements involve multicountry discussions and agreements, which can take a very long time to secure and sometimes do not lead to significant reduction in transit time if transit time is small compared to other links. In addition, their cost impact is limited. 23. If this regime is linked to improvement of the clearance process in the gateway country (through customs reform and improvement of a single window concept, for example), this can lead to major economic benefits regionwide.

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The Cost of Being Landlocked: Logistics Costs and Supply Chain Reliability (Directions in Development) by Jean-Francois Arvis, Jean-Francois Marteau, Gael Raballand


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