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Facilitating international production networks: The role of trade logistics

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  • Daniel Saslavsky
  • Ben Shepherd

Abstract

Networked trade in parts and components is more sensitive to the importer's logistics performance than is final goods trade. The difference between the two trade semi-elasticities is over 45%, which is quantitatively important. We also find that logistics performance is particularly important for trade among developing countries in the Asia-Pacific region, which is where the emergence of production networks has been most pronounced. Logistics performance is also more important for South-South trade than for South-North trade. Our results suggest that developing country policymakers can support the development of international production networks by improving trade logistics performance.

Suggested Citation

  • Daniel Saslavsky & Ben Shepherd, 2014. "Facilitating international production networks: The role of trade logistics," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 23(7), pages 979-999, October.
    • Handle: RePEc:taf:jitecd:v:23:y:2014:i:7:p:979-999
    DOI: 10.1080/09638199.2013.811534
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