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Professor Lauri Ojala Turku School of Economics , Finland Lauri.ojala@utu.fi

Association of Customs and Trade Experts International Logistics Symposium Ankara, June 8, 2013. The World Bank's Logistics Performance Index (LPI). Turku School of Economics University of Turku, Finland. International Federation for Freight Forwarders Associations .

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Professor Lauri Ojala Turku School of Economics , Finland Lauri.ojala@utu.fi

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  1. Association of Customs and Trade Experts International Logistics Symposium Ankara, June 8, 2013 The World Bank's Logistics Performance Index (LPI) Turku School of Economics University of Turku, Finland International Federation for Freight Forwarders Associations Professor Lauri Ojala Turku School of Economics, Finland Lauri.ojala@utu.fi Global Facilitation Partnership for Transportation and Trade

  2. Background on the LPI Firstreport & 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 Prof. Lauri Ojala, Ankara, June 8, 2013

  3. What is the LPI? A set of indicators that measure the performance of the trade logisticsenvironment of economies Data for the LPI Logistics professionals in international freight forwarding operations Prof. Lauri Ojala, Ankara, June 8, 2013

  4. LPI 2010 & 2012 data collection • Web-basedSurvey in: • English, French, Spanish, Chinese and Russian • 1,000+ individualrespondents • 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 Prof. Lauri Ojala, Ankara, June 8, 2013

  5. 155 economies compared internationally based on 5,000+individual evaluations on: The Overall LPI Score is composed of these six dimensions Country ranks in the International LPI • LPI measures measures how “easy” or “difficult” Trade Logistics is • More applicable to trade of manufactures than to bulk commodities Prof. Lauri Ojala, Ankara, June 8, 2013

  6. Overall LPI 2012 scores www.worldbank.org/lpi Prof. Lauri Ojala, Ankara, June 8, 2013

  7. Upper Middle Income countries a “watershed”; you find them in all performance quintiles LPI 2012 data Prof. Lauri Ojala, Ankara, June 8, 2013

  8. It is more how things are done thanwhat the formal regime is Sorted by LPI 2012 quintile Number of.. 8 Prof. Lauri Ojala, Ankara, June 8, 2013

  9. Income level alone does not explain economies’ trade logistics performance Countries by LPI 2012 overall score and GDP/capita The boundaries for the fourcategoriesindicativeonly ”Logistics Friendly” ”Consistent Performers” ”PartialPerformers” ”Logistics Unfriendly” Prof. Lauri Ojala, Ankara, June 8, 2013

  10. Why Logistics Matter LPI = Logistics Performance Index; Tariffs = TTRI = Trade Restrictiveness Index; All barriers = OTRI = Overall Trade Restrictiveness Index. Prof. Lauri Ojala, Ankara, June 8, 2013

  11. Turkey ranks high in logistics compared to its peers… (LPI ranking, 2012) Rank out of 155 countries Prof. Lauri Ojala, Ankara, June 8, 2013

  12. : …and performs above countries with similar per capita income Prof. Lauri Ojala, Ankara, June 8, 2013

  13. Logistics performance of Turkey at par with Southern Europe in most components in 2012… Prof. Lauri Ojala, Ankara, June 8, 2013

  14. …and has imporved steadily since 2007 Prof. Lauri Ojala, Ankara, June 8, 2013

  15. and…Turkey ranks 20thin the world on UNCTAD’s container shipping connectivity Source: UNCTAD 157 countries included in 2012 Prof. Lauri Ojala, Ankara, June 8, 2013

  16. Conclusion 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 16 Prof. Lauri Ojala, Ankara, June 8, 2013

  17. Thank you!The 2012 LPI is available at:www.worldbank.org/lpi Prof. Lauri Ojala, Ankara, June 8, 2013

  18. Seealso: A large national logistics survey with over 2,700 respondents in: • Manufacturing • Trading • Logisticsproviders by TSE Logistics researchgroupfor the FinnishMoTC Availableat: http://www.lvm.fi/web/en/publication/-/view/4136894 Prof. Lauri Ojala, Ankara, June 8, 2013

  19. Seealso: A comprehensiveoverview By Rantasila & Ojala Discussion Paper 2012 - 04 Publishedat the ITF Summit 2012 Leipzig, Germany Available also at: www.internationaltransportforum.org Prof. Lauri Ojala, Ankara, June 8, 2013

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