Logistics input intensity, trade facilitation and comparative advantage

This paper investigates the impact of trade facilitation on comparative advantage in logistics-intensive manufacturing industries. To capture the industry-level heterogeneity, we introduce logistics input intensity (LII) to measure the degree of logistics service used by different manufacturing sect...

Full description

Saved in:
Bibliographic Details
Published in:The journal of international trade & economic development 2022-07, Vol.31 (5), p.725-741
Main Authors: Yang, Lei, Dong, Qianli, Tong, Ziqiang, Wang, Qiuling, Wu, Jiani
Format: Article
Language:English
Subjects:
Advantages
comparative advantage
Comparative studies
Developing countries
LDCs
logistics input intensity
logistics performance index
Manufacturing
Policy making
Trade facilitation
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:This paper investigates the impact of trade facilitation on comparative advantage in logistics-intensive manufacturing industries. To capture the industry-level heterogeneity, we introduce logistics input intensity (LII) to measure the degree of logistics service used by different manufacturing sectors. The results show that country-level trade facilitation measured by Logistics Performance Index (LPI) can promote the comparative advantage more in manufacturing sectors with higher usage intensity of logistics, especially in developing countries. Furthermore, after dividing the logistics input intensity into two parts of foreign and domestic, we find that foreign logistics input can enhance manufacturing comparative advantage in countries with low LPI. It is suggested that policymakers in developing countries should formulate specific policies to guide logistics resources toward manufacturing sectors that are more dependent on logistics and open up the logistics services market to take full advantage of foreign logistics services.
ISSN:0963-8199
1469-9559
DOI:10.1080/09638199.2021.2011380