The paper
This paper compares the relationship between logistics performance and trade in parts and components with the relationship for final goods. It examines production networks globally, with particular attention to the Asia-Pacific and trade among developing countries.
Research findings
- Parts-and-components trade is more sensitive to importers’ logistics performance than final-goods trade.
- Logistics is especially important for the Asia-Pacific and for South–South trade, where production networks link multiple locations.
Policy takeaways
- Make logistics reform a central part of strategies to join international production networks.
- Address infrastructure, border procedures, transport regulation, and private logistics capabilities together to remove weak links in supply chains.