Overview. Motivation for logistics indicators researchMethodology for developing logistics indicatorsCross country comparisons of selected logistics indicators Logistics indicators as determinants of bilateral tradeSupply chain-based logistics index . What Determines Bilateral Trade?. . . . .
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1. Creating Global Value Through Efficient Trade Logistics
2. Overview Motivation for logistics indicators research
Methodology for developing logistics indicators
Cross country comparisons of selected logistics indicators
Logistics indicators as determinants of bilateral trade
Supply chain-based logistics index
3. What Determines Bilateral Trade?
4. Past Studies on Bilateral Trade
5. Our Focus
6. Research Opportunities Institutional quality and infrastructure variables have been based on subjective indices or expert assessments.
Quantifiable and measurable logistics performance indicators have not been used.
Variables used are not easily translated into operations i.e. not directly actionable.
Best results without using country-specific dummy variables explain 66% of variability in bilateral trade.
7. Objectives of Research Determine the significance of logistics performance in influencing bilateral trade through the use of measurable and quantifiable logistics indicators.
Perform a critical assessment of logistics performance of countries globally.
Develop supply-chain logistics index to guide resource allocation and deployment for improving logistics efficiency.
8. Snapshot of Methodology
9. Global Logistics Indicators Dimensions of measurement: Examples Total time for a trade transaction
Document processing time
Vessel waiting time for berth
CSI related time
11. Methodology: Assumptions
15. Coastal Countries
21. Percentage of Import Containers Inspected
23. Criteria for Selection of Containers for Customs Inspection (Sample countries)
24. Augmented Gravity Model
25. Critical Global Logistics Indicators
26. Augmented Gravity Model Results
27. Observations Measurable and quantifiable logistics indicators improve explanatory power of gravity model for bilateral trade.
Logistics indicators results show efficient logistics in time and cost can contribute to increased trade.
Variability matters – higher variability in processing time can be a deterrent to bilateral trade.
28. Supply-Chain Based Logistics Index A single metric to evaluate and measure logistics efficiencies
Weights of each variable in the Logistics Index show relative benefits
Use weights to guide resource allocation and deployment of logistics improvements
A single measure enables quick and easy benchmarking
29. Supply Chain-Based Logistics Index
30. Three-Stage Logistic Index Estimation
31. Stage 1 Logistics Index Model Results
32. Stage 2 Logistics Index Model Results
33. Stage 3 Logistics Index Model Results
34. Model Comparisons
35. Implications for Logistics Improvements*
36. Logistics Index Observations It is possible to derive a single logistics index that captures all the explanatory power of all the logistics indicators.
The logistics index is a significant determinant of bilateral trade.
The logistics index is derived from distance, time, cost and variability measures.
37. Summary Logistics indicators are a significant determinant of bilateral trade.
A single Logistics Index has equal explanatory power to the set of logistics indicators.
Private enterprises and government agencies should collaborate to improve logistics performance and reduce logistics friction in order to foster trade.
The Logistics Index can be used to guide resource allocation and deployment for such improvement projects.