1 Professor Lauri Ojala Turku School of Economics, Finland [email protected] Global Facilitation Partnership for Transportation and Trade International

1

Professor Lauri OjalaTurku School of Economics, Finland

[email protected] Facilitation

Partnership for Transportation and Trade

International Federation for Freight Forwarders

Associations

The World Bank'sLogistics Performance Index

(LPI)

Association of Customs and Trade Experts International Logistics Symposium

Ankara, June 8, 2013

Turku School of Economics University of Turku, Finland

http://www.gfptt.org/

Prof. Lauri Ojala, Ankara, June 8, 2013 2

First report & data launched on Nov. 5, 2007 www.worldbank.org/lpi

LPI 2010 launched by WB President Robert B Zoellick in Berlin on Jan. 15, 2010

Worldwide media coverage

LPI 2012 out May 16, 2012

Background on the LPIBackground on the LPI

http://www.worldbank.org/lpi


What is the LPI?What is the LPI?

Data for the LPI

Logistics professionals in international freight forwarding

operations

A set of indicators that measure the performance of the trade logistics

environment of economies


LPI 2010 & 2012 data collectionLPI 2010 & 2012 data collection• Web-based Survey in:

– English, French, Spanish, Chinese and Russian

• 1,000+ individual respondents

• Responses from 130-160 economies

• Over 5,000 international evaluations of 155 economies ”from the outside”

• Data from 100-140 economies for evaluation ”from the inside”

• All survey data is indicative due to e.g. sampling errors, subjective evaluations & confidence intervals


155 economies compared internationally based on 5,000+ individual evaluations on:155 economies compared internationally

based on 5,000+ individual evaluations on:

LPI measures measures how “easy” or “difficult” Trade Logistics is

More applicable to trade of manufactures than to bulk commodities

The OverallLPI Score iscomposed of

these sixdimensions

Country ranksin the

International LPI


Overall LPI 2012 scores

www.worldbank.org/lpi


Upper Middle Income countries a “watershed”; you find them in all performance quintiles

Upper Middle Income countries a “watershed”; you find them in all performance quintiles


Low in

com

e

Lower

mid

dle in

com

e

Upper m

iddle

inco

me

High in

com

e non-O

ECD

High in

com

e OECD

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Top quintileSecond quintileThird quintileFourth quintileBottom quintile

Per

cen

t

LPI 2012 data

It is more how things are done thanwhat the formal regime is

It is more how things are done thanwhat the formal regime is

Bottom

quin

tile

(lowes

t per

form

ance

)

Fourth q

uintil

e (lo

w per

form

ance

)

Third q

uintil

e (a

vera

ge per

form

ance

)

Second q

uintil

e (h

igh p

erfo

rman

ce)

Top quin

tile

(hig

hest p

erfo

rman

ce)

012345

No. of import agencies No. of export agenciesNo. of import documents No. of export documents

Nu

mb

er

of.

.

Sorted by LPI 2012 quintile



Income level alone does not explain economies’ trade logistics performance

Income level alone does not explain economies’ trade logistics performance

Countries by LPI 2012 overall score and GDP/capita

”Logistics Friendly”

”Consistent Performers”

”Partial Performers”

”Logistics Unfriendly”

The boundaries for the four categories indicative only

Why Logistics MatterWhy Logistics Matter

Result when a low income country reaches LPI of middle income average

Indicator/policy area Increase in trade (%)

Logistics Performance Index 15.2

All trade barriers reduced to 10% 8.4

Doing Business, cost of trading 7.4

Tariffs reduced to 5% 5.7

LPI = Logistics Performance Index; Tariffs = TTRI = Trade Restrictiveness Index; All barriers = OTRI = Overall Trade Restrictiveness Index.

10Prof. Lauri Ojala, Ankara, June 8, 2013

Turkey ranks high in logistics compared to its peers… (LPI ranking, 2012)

Turkey ranks high in logistics compared to its peers… (LPI ranking, 2012)


Rank out of 155 countries

: …and performs above countries with similar per capita income

: …and performs above countries with similar per capita income


Logistics performance of Turkey at par with Southern Europe in most components in 2012…

Logistics performance of Turkey at par with Southern Europe in most components in 2012…


…and has imporved steadily since 2007…and has imporved steadily since 2007


and…Turkey ranks 20th in the world on UNCTAD’s container shipping connectivity

and…Turkey ranks 20th in the world on UNCTAD’s container shipping connectivity


Source: UNCTAD157 countriesincluded in 2012

Prof. Lauri Ojala, Ankara, June 8, 2013

Conclusion on the LPI surveyConclusion on the LPI survey• A useful indicator on how ”easy” or

”difficult” a country’s Trade Logistics is

• Provides also domestic assessments; no. of respondents in a single economy often low

• Scores = Confident Intervals, not fixed points

• The resolution is rather low, but the LPI correlates very well with other datasets

• Robust & pragmatic data; useful in research, teaching, business and policy-making

1616

THANK YOU!

THE 2012 LPI IS AVAILABLE AT:

WWW.WORLDBANK.ORG/LPI

THANK YOU!

THE 2012 LPI IS AVAILABLE AT:

WWW.WORLDBANK.ORG/LPI





A large national logistics

survey with over

2,700 respondents in:- Manufacturing- Trading- Logistics providers

by TSE Logistics

research group for the

Finnish MoTC

Available at:

http://www.lvm.fi/web/en/publication/-/view/4136894

See also:




A comprehensive overview

By Rantasila & Ojala

Discussion Paper 2012 - 04

Published at the

ITF Summit 2012

Leipzig, Germany

Available also at:

www.internationaltransportforum.org


See also:

http://www.internationaltransportforum.org/

Documents

1 Professor Lauri Ojala Turku School of Economics, Finland [email protected] Global Facilitation Partnership for Transportation and Trade International