In international trade, the quality and efficiency of transport and logistics services combined with the liberalized economic environment influence the increase in trade volume, economies of scale and scope in distribution and production activities. In addition, in the local economy they provide interdependent productive sectoral connections.

The author highlights that transport is part of logistics, since logistics encompasses transport infrastructure, port and airport services, transport systems and the interconnection between modes of transport, so transport is the most important individual component. costly of logistics, however, it is important to understand it as a system where each process is important and the efficiency in each stage is important since it directly affects the total costs of the entire process, as indicated by the OECD (2011) decrease of one day in the logistics process increases trade 4.5%.

International policies where Malik and Awadallah (2013) establish that border barriers create friction costs in transport, communication and services, so countries whose institutions that control transactions and commercial procedures are weak, cause delays to the logistics process, even Shepherds 2010 pointed out that the longer the delay, the higher the levels of corruption in said processes, where companies must grant incentives to obtain speed in these processes.

The market structure can also complicate logistics services, since they can act as a barrier because in cases such as monopolies and duopolies, they control aspects such as entrances and border controls and product diversification, an example of this in the Middle East and Africa where there is a predominance of cargo monopolies and pricing of products, which implied that new companies could not enter due to the cost that this implies.

The author establishes an econometric model in which total trade made up of exports of goods and services and imports of goods and services depends on the rate of change of relative prices, the rate of domestic economic growth for the import model, the rate of world economic growth for the export model, trade liberalization, contract execution, common language and common border, aspects that are related to the way in which the World Bank measures the index of logistics performance of countries .

The results of the article establish that the development of logistics significantly influences trade in a positive way, however, it also shows that geographical obstacles, customs management, obsolete and excessive requirements, corruption in border controls and the absence of a strategy of national transport cause significant delays in the logistics process.

The article is closely related to economic theory, especially with the Krugman model, where the productive sector of each country is characterized by monopolistic companies with economies of scale, such as the competitive advantage derived from international

trade and the location of economic activity where the Economies tend to grow so they develop new forms of marketing and implementation of strategies, so the studies that connect logistics with trade are based on the industry and its growth

In conclusion, logistics is very important for the development of trade, especially international trade, and control is important in each process, so the automation of the entire logistics process is important because it evaluates the deficiencies according to the market structures in which they are developed.

References

OECD. (2011). “To what extent are high-quality logistics services trade facilitating”? Trade Policy Working Paper 108, OECD.

MALIK, A. and AWADALLAH, B. (2013). “The economics of Arab spring”, World Development, Vol. 45, pp. 296-313.