Evaluation of Logistic Performance Indexes of Brazil in the International Trade

Abstract

The importance of efficient logistics for trade growth is widely acknowledged. Literature has shown that better logistics performance is strongly associated with trade expansion, export diversification, ability to attract foreign direct investments, and economic growth. On the other hand, international trade represents a challenge to logistic operations in transporting and storing products. High logistic costs and low quality of services may be considered obstacles to international trade. This research aims to assess Brazil’s Logistics Performance Index (LPI) in relation to its major competitors in international trade. The international trade data was collected from SECEX and COMTRADE, while the LPI was provided by the World Bank. Statistical techniques such as cluster analysis and multiple comparison tests of means have been applied to analyze the data. After using LPI index for the 39 competitors, it has been observed that Brazil occupies the 26th position in the rank of performers, behind South Africa, Kuwait and Saudi Arabia. The top performers are in general the leading exporters and importers worldwide (Germany, U.S.A., Japan and the Netherlands). Furthermore, they are the strongest competitors of Brazil in international trade. Thus, the competitiveness of Brazilian domestic firms depends crucially on a dynamic and competitive internal logistic environment in order to stand up to these countries. The results also indicate the bureaucracy as a major obstacle to the logistic performance of the country. The dimension Timeliness of Brazil is very close to the High Logistics Performance Group (HLPG) while Customs is very close to the Low Logistics Performance Group (LLPG). Although Brazil has failed in its customs operations, there seems to be more credibility in Brazilian dealings. The main contribution of this paper is to reveal logistical aspects in which Brazil has shown large inefficiencies. The difference among the logistic performance indexs also appears to be relevant to governments to address their new public policies and also to highlight the logistic obstacles of the Brazilian international trade.

The double-edge resource-based view of logistics performance and governance in Asian countries

“…For example, LPI was employed to identify major obstacles to a country's logistics performance. Faria et al (2015) found that major obstacle to logistics performance is bureaucracy, and competitive and dynamic internal logistics environments are crucial for the competitiveness of Brazilian domestic firms. Ojala and Çelebi (2015) investigated drivers and barriers for Turkey's logistics performance and recommended policies critical to improving them.…”

Fatores que impactam o desempenho logístico e suas relações com os aspectos econômicos e socioculturais

“…As características de cada um dos indicadores são: Alfândega: mensura a eficiência da gestão aduaneira e das fronteiras de liberação. Esse indicador de desempenho aborda a eficiência das atividades aduaneiras de rotina, procedimentos de desembaraço aduaneiro tais como: inspeção física, apresentação eletrônica, liberação antes e após a chegada, auditoria e transparência dos procedimentos alfandegários e administrativos (FATTIBENE et al, 2012).…”

Comparative Impact of Logistics Performance Index, Ease of Doing Business and Logistics Cost on Economic Development: A Fuzzy Qca Analysis

“…Several studies have researched on the importance of the LPI index across geographies to provide insight into the logistics competitiveness for various economies of the world such as Finland in a research study by Solakivi et al (2009), the economy of Turkey for logistics competitiveness by Ekici et al (2016), Brazil (Faria et al, 2015) and England (Khan & Qianli, 2017). In the similar lines, EODB index, is researched in a study by Fernández-Serrano and Romero (2014), Kalyvas and Mamatzakis (2014) and Pinheiro-Alves and Zambujal-Oliveira (2012), however these studies included only one type of index for the analysis purpose.…”