Evaluating International Logistics Systems in Ethiopiausing Logistics andother Performance Indexes: theCaseof Ethio-China Trade Relationshi
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Date
2019-05-25
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Addis Ababa University
Abstract
Trade involves participation along the global using various logistic system. Providing
Efficient logistic system is a suitable solution to solve problems in Trade Logistics which
Could be obstacles to the competitiveness of the country. In order to get the benefits of
the globalization process, determining countries logistic performance is essential all by
identifying its impact on competitiveness. Global benchmarks as LPI, Global Resilience Index,
GCI and LSCI can provide an insight how countries stack up against their competitors and
Indicate the possible opportunities and strength along the trade and logistics. Them ain
Objective of this study was to evaluate logistic system of Ethiopian international trade
mainly focusing the trade with China.T he evaluation was made by both primary and
secondary data. Based on the secondary data mainly focusing on World Bank report his
study finds out that infrastructure and timeliness area major bottlenecks for Ethiopia’s
logistics in efficiency. It is indicated that the mean score of LPI result of Ethiopia is 2.42, and
ranked 126th
across the year (2007-2016). Among the six indexes of LPI Custom index have
the highest rank which is 95 with score of 2.44 and Timeliness index has lowest rank which is 151th st
with score of 2.62. Data collected from traders (Importers, Exporters) mainly with
China involving on different type of commodities, determined the salient factors affecting
Trade competitiveness of the country on issues related to warehouse, freight transport,
Information technology, shipping delay, customs and logistic professionals. Comparative
Analysis was also made using the data collected from logistic service providers (ESLS,
ERCA). These finding confirm another research that suggests that to benefit from
international trade and to maximize return on logistics assets; development of
infrastructure both inside and at the border, interagency coordination improvement,
introduction of cargo tracking system and regional custom transit system, provision of
detailed corridor monitoring is necessary.
Promoting utilization of ICT in the end to end service, establishing effective trade
facilitation and regulatory programs by providing national single window system and reduce transit checkpoints, develop port facilities and establishing integrated transport system
and corridor facilities are important points to be learned from China and develop it in our
country Ethiopia.
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Keywords
Logistic System, LP, International Trade, Ethiopia