Trade Costs, Time, and Supply Chain Reliability
Publication | June 2018
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South Asia Subregional Economic Cooperation countries have to invest in improving connectivity to reduce transport times and increase reliability to major markets.
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This paper uses measures of international transport time in median and standard deviation based on shipment-level data from the Universal Postal Union, to analyze the effect of time on trade costs. The results show that median shipping times increase trade costs by a substantial amount. The determinants of shipping times are also analyzed and find that geographical distance is the most reliable indicator of median time and uncertainty, with logistics performance also playing a role in determining shipment times.
Contents
- Introduction
- Data and Preliminary Analysis
- Econometric Model and Results
- Conclusion and Policy Implications
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