Abstract
While much of the literature has focused on the influence of trade costs on global value chain (GVC)-engagement, more limited attention has been paid to the role of logistics capabilities. This omission negates the role of the logistics sector in enabling certain types of upgrading, such as “multi-chain” including through horizontal integration. The comparative GVC case study analysis presented in this chapter, which draws on the upgrading experiences of producers in the cut flower GVC in East Africa and firms that trade on an intra- or extra-regional basis in Southern Africa, underscores the importance of the logistics sector in terms of the development of producers’ capabilities.
This chapter has been prepared by Dr Jodie Keane, economic adviser, Trade Division, Commonwealth Secretariat. The views expressed are those of the author and do not represent those of the Secretariat. However, this chapter draws on analyses including those funded by the Commonwealth Secretariat.
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Notes
- 1.
Although there are three main types, the UNCTAD/Eora database has the most country coverage.
- 2.
These results are presented in Shepherd (2016).
- 3.
The World Bank’s logistics performance index (LPI)—a weighted average of six indicators, and based on a survey of around 1000 logistics professionals—takes into account performance on trade and transport-related infrastructure, customs clearance, the ease of arranging competitively priced shipments, the ability to track and trace consignments, timeliness of delivery, and the competence and quality of logistics services.
- 4.
See Pathikonda and Farole (2016).
- 5.
This is derived from case study analysis of the automotive or electronics industry.
- 6.
Adapted from Keane (2017) forthcoming.
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Keane, J. (2019). Logistics and Value Chain Development: Cost and Capability Considerations. In: Adewole, A., Struthers, J.J. (eds) Logistics and Global Value Chains in Africa. Palgrave Studies of Sustainable Business in Africa. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-77652-1_7
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