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Trade Logistics in Developing Countries: The Case of the Middle East and North Africa

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  • Julia Devlin
  • Peter Yee

Abstract

This paper presents an analysis of obstacles facing exporting firms in developing countries by diagnosing the efficiency of trade logistics in the Middle East and North Africa region (MNA). Using logistics chain analysis for six export commodities, it presents evidence that transport and non‐transport logistics costs for export commodities from the MNA region are quite substantial, ranging from 7–25 per cent of landed product prices. Underlying these costs are key bottlenecks identified as: inefficient trucking and transport services, low export volume leading to long shipping times and the need for costly inventory accumulation, aggressive, obstructive customs authorities and procedures, low and inconsistent product quality, an underdeveloped transport intermediary sector, inefficient cross‐border transit procedures and others. Recommended actions to address developing a national transport policy, overhauling the regulatory regime for the trucking sector, export promotion measures, increasing competition in port and air freight services, reorienting customs authorities towards trade facilitation and developing cross‐border transit procedures similar to the TIR Carnets model.

Suggested Citation

  • Julia Devlin & Peter Yee, 2005. "Trade Logistics in Developing Countries: The Case of the Middle East and North Africa," The World Economy, Wiley Blackwell, vol. 28(3), pages 435-456, March.
    • Handle: RePEc:bla:worlde:v:28:y:2005:i:3:p:435-456
    DOI: 10.1111/j.1467-9701.2005.00620.x
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    References listed on IDEAS

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    1. Schware, R. & Kimberley, P., 1995. "Information Technology and National Trade Facilitation," Papers 317, World Bank - Technical Papers.
    2. Schware, R. & Kimberley, P., 1995. "Information Technology and National Trade Facilitation; Making the Most of Global Trade," Papers 316, World Bank - Technical Papers.
    3. World Bank, 2003. "Trade, Investment and Development in the Middle East and North Africa : Engaging with the World," World Bank Publications - Books, The World Bank Group, number 15116.
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    Cited by:

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    2. Satyendra Nath Chakrabartty, 2023. "Constructing Aggregated Revealed Comparative Advantage Index of a Country," Journal of Asian Economic Integration, , vol. 5(1), pages 64-77, April.
    3. Jack G.A.J. van der Vorst & Joost Snels, 2014. "Developments and Needs for Sustainable Agro-Logistics in Developing Countries," World Bank Publications - Reports 17834, The World Bank Group.
    4. Richard Pomfret & Patricia Sourdin, 2010. "Why do trade costs vary?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 146(4), pages 709-730, December.
    5. Xuanlong Qin & Danish Iqbal Godil & Muhammad Kamran Khan & Salman Sarwat & Sadaf Alam & Laeeq Janjua, 2022. "Investigating the effects of COVID-19 and public health expenditure on global supply chain operations: an empirical study," Operations Management Research, Springer, vol. 15(1), pages 195-207, June.
    6. Alassane D. Yeo & Aimin Deng & Todine Y. Nadiedjoa, 2020. "The Effect of Infrastructure and Logistics Performance on Economic Performance: The Mediation Role of International Trade," Foreign Trade Review, , vol. 55(4), pages 450-465, November.
    7. Zhao, Qianyu & Xu, Hang & Wall, Ronald S & Stavropoulos, Spyridon, 2017. "Building a bridge between port and city: Improving the urban competitiveness of port cities," Journal of Transport Geography, Elsevier, vol. 59(C), pages 120-133.
    8. Benjamin Nitsche, 2021. "Embracing the Potentials of Intermodal Transport in Ethiopia: Strategies to Facilitate Export-Led Growth," Sustainability, MDPI, vol. 13(4), pages 1-21, February.
    9. Jean-Claude Maswana, 2020. "African Economies in the Shadow of China: Effects of Bilateral Trade Structure on Economic Growth in Africa," Foreign Trade Review, , vol. 55(1), pages 80-92, February.
    10. Eriamiatoe Efosa Festus, 2021. "Logistics and trade flows in selected ECOWAS Countries: An empirical verification," Papers 2108.06441, arXiv.org.
    11. Charles Kunaka, 2011. "Logistics in Lagging Regions : Overcoming Local Barriers to Global Connectivity," World Bank Publications - Books, The World Bank Group, number 2543.
    12. Huynh, Cong Minh & Hong, Thien Huong, 2022. "The multi-dimension of international logistics performance and export flows: An empirical study from developing countries," MPRA Paper 112444, University Library of Munich, Germany.
    13. Patricia Sourdin & Richard Pomfret, 2012. "Trade Facilitation," Books, Edward Elgar Publishing, number 14596.
    14. Dennis, Allen, 2006. "The impact of regional trade agreements and trade facilitation in the Middle East and North Africa region," Policy Research Working Paper Series 3837, The World Bank.
    15. Kee-hung Lai & Yu Pang & Christina W. Y. Wong & Y. H. Venus Lun & Y. N. Eppie Ng, 2019. "Are trade and transport logistics activities mutually reinforcing? Some empirical evidences from ASEAN countries," Journal of Shipping and Trade, Springer, vol. 4(1), pages 1-17, December.
    16. Eugene Bempong Nyantakyi, 2023. "Bank‐intermediated trade finance and the intensive margin of African trade," The World Economy, Wiley Blackwell, vol. 46(4), pages 1144-1160, April.
    17. Mešić Amar & Miškić Smiljka & Stević Željko & Mastilo Zoran, 2022. "Hybrid MCDM Solutions for Evaluation of the Logistics Performance Index of the Western Balkan Countries," Economics, Sciendo, vol. 10(1), pages 13-34, June.
    18. Rezaei, Jafar & van Roekel, Wilco S. & Tavasszy, Lori, 2018. "Measuring the relative importance of the logistics performance index indicators using Best Worst Method," Transport Policy, Elsevier, vol. 68(C), pages 158-169.

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