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Doing Business Trading Across Borders and Logistics Performance Index: similar yet different

Valentina Saltane's picture


People who look at the Doing Business report’s Trading Across Borders indicator and the Logistics Performance Index (LPI) often wonder why one country can perform well on one of the rankings but not so well on the other although they both measure trade and logistics. In fact, earlier this year, the Doing Business team organized a workshop at the World Bank Global Knowledge and Research Hub in Kuala Lumpur to clarify the differences between the two datasets.

Let’s start off with a few definitions:

The Doing Business report is a World Bank Group flagship publication, which covers 11 areas of business regulations. Trading Across Borders is one of these areas. It looks specifically at the logistical processes of exporting and importing. Data is updated annually and the latest edition covers 190 economies. Doing Business collects data from local experts and measures performance as reported by domestic entrepreneurs, while taking into consideration factual laws and regulations.

The Logistics Performance Index is a benchmarking tool which focuses on trade logistics. It is created to help countries identify the challenges and opportunities they face as they relate to customs, border management, transport infrastructure, and logistics services. Updated biennially, the latest data and report cover 160 economies. Data is collected from global freight forwarders and express carriers who provide feedback on the logistical “friendliness” of the countries they operate.

Chart: Tourism Reaches all-time high in Peru

Erin Scronce's picture

Peru welcomed 3.2 million tourists in 20 14, the highest number to date. In some regions of the country, like Cusco, tourism is a potential economic lifeline for local people, who can profit from a variety of businesses serving tourists. In 2012, the World Bank Group began working with The Government of Peru to streamline the processes around opening tourism-related businesses because excessive regulations and red tape were holding up investments in new businesses for years. Ultimately, the project shaved 3 years off the business registration process and eliminated 150 unnecessary regulations. With the streamlined regulations in place, investments in hotels in Peru are on the rise. Between 2015 and 2018, Peru is expecting US$1.2 billion in investments in new hotels, an increase from US$550 million during the period 2010-2014.

 Find out more here.

Chart: South Asia’s Exports Increasing in Value

Erin Scronce's picture

In South Asia, more than one million young workers enter the labor market each month. Education levels are on the rise, cities are sprawling, exports are gaining value and as a result, many eyes are on the region to become the next ‘global factory’. But to become the world’s next middle-income region, South Asia’s firms must become more globally competitive.

On October 6, join a live event where global thought leaders, business leaders and policy makers will discuss the obstacles and opportunities affecting the South Asia region’s competitiveness.

Chart: High-Tech Exports on the Rise in South Asia

Erin Scronce's picture

 

In South Asia, high-tech exports comprise a much larger share of total manufactured exports today than they did in 1990. In fact, the percentage of high-tech exports more than doubled between 1990 and 2014, and have been trending upwards for the past 3 years. Aircraft, computers, and pharmaceuticals are all examples of high-tech exports, which rely on large outlays of research and development. As South Asia seeks to become more globally competitive, these industries can help propel the region's countries into middle-income levels.

Find more trade data from South Asia
Read the latest trade news and research from the World Bank Group 

Chart: LED lights gaining market share globally

Jiemei Liu's picture
Also available in: 中文 | العربية | Español | Français

How can industry remain competitive in the global market while meeting targets to reduce greenhouse gas emissions?  A recently released report by the World Bank Group and partners, A Greener Path to Competitiveness, explains that to meet these dual objectives, governments, industries and consumers must all take action. The lighting industry is an example of one area where these three entities have come together to mainstream an energy-efficient option, LED lights.

Chart: What are the primary fuel sources for major industries?

Erin Scronce's picture
Also available in: 中文

A new report from the World Bank Group in collaboration with CLASP and Carbon Trust, A Greener Path to Competitiveness, finds that industry has a large role to play in tackling climate change with huge untapped energy saving potential.

The report highlights the highest carbon-emitting sectors in the world’s economy: the production of iron and steel, aluminum, chemicals and cement. These industries continue to rely heavily on traditional fuel sources such as coal, natural gas and oil. There are significant opportunities to reduce these emissions, by using new technologies or retrofitting older plants to make production greener. Without urgent action, there is a danger that climate change targets set by the 195 signatories to the Paris Agreement will not be met.

Read more about how industries can find a greener path to competitiveness

Chart: Poverty is Driving Informal Work Among Foreign Service Providers to Democratic Republic of Congo

Erin Scronce's picture

A new report, From Hair Stylists and Teachers to Accountants and Doctors - The Unexplored Potential of Trade in Services in Africa, indicates that African countries are trading in services, often in unexpected ways. Africa’s export potential in traditional services, such as tourism, is clearly recognized, but the emerging success of exports of nontraditional services is often overlooked. Hairdressers, doctors, educators, and accountants are all examples of service providers who are moving across borders to take advantage of employment opportunities away from home. Many of these workers are finding opportunity in the informal sector, driven to other countries due to poverty and lack of opportunities at home. Read more in the feature story and report

Chart: Nepal’s Exports Struggle Amidst Outdated Trade and Investment Policies

Erin Scronce's picture

Nepal is a country full of untapped potential, but several obstacles stand in its way of becoming a more modern and globally connected economy. Outdated trade and investment policies hurt exporters especially and make it difficult for them to reach markets in developed countries. A new World Bank Group report takes stock of current participation in global markets and makes recommendations on how the country can increase trade integration and boost its economy.

Read more in this feature story and report, and learn more about improving trade in Nepal in this video.

Chart: How Do Asia's Apparel Exporters Compare?

Tariq Khokhar's picture
Also available in: 中文 | العربية

China remains the world’s largest apparel exporter, but apparel as a share of its total exports has been falling. The "Stitches to Riches" report finds that countries in South Asia have an opportunity to grow their apparel exports, creating much-needed jobs, especially for women.
 

Exporter Dynamics Database version 2.0: What does it reveal about the trade collapse?

Ana Fernandes's picture

The recent global financial crisis was closely followed by a trade collapse. Global trade plunged by 23% in 2008-2009. Despite a rebound in 2010-2011, trade growth has been almost stagnant ever since and is predicted by the WTO in its April 7 2016 press release to remain sluggish, a grim outlook compared to the expansions in pre-crisis times (Constantinescu et al., 2015).  What were the underlying micro sources of this trade collapse: were exporters’ ability to participate in foreign markets or their pace of growth most hurt? Evidence from high-income countries shows that declines in the intensive margin—average exporter size—explain most of the decline in global trade, compared to the fall in the extensive margin—the number of exporters. But what about developing countries? 

Download and query Exporter Dynamics Database indicators

The recently released Exporter Dynamics Database (EDD) version 2.0 with its indicators on both margins of trade at a micro level for 70 countries (of which 56 developing countries) can help answer this question. The EDD can be downloaded in bulk from the World Bank Microdata catalog and now it is also available for customized queries in the World Bank Databank. The EDD indicators for developing countries show that a decline in the average size of exporters was the key factor behind the decline in total exports resulting from the global financial crisis. 

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