This chapter looks at connectivity in trade logistics, where international transport of goods takes
place in complex networks of hubs such as seaports and routes like railways. It aims to highlight
the importance of logistics performance and connectivity in a world trade context, especially in
relation to ASEM countries.
The connectivity of a country, or a logistics centre, is usually defined as how central it is on
relevant networks. Connectivity reflects geography and the global structure of logistics networks,
but location specific trade transaction costs, due to supply chain inefficiencies, may increase
economic distance and therefore reduce connectivity.
Understanding the components of trade logistics performance and the importance of connectivity
can help countries improve their competitiveness. Not surprisingly, many recent policy processes
in Asia and Europe which aim to facilitate trade and improve logistics performance are described
as connectivity.
The World Bank’s Logistics Performance Index and related indicators are used to illustrate the
importance of connectivity and logistics performance for ASEM countries. The level of logistics
performance, and connectedness to markets and logistics networks varies a lot. This calls for
very different policy making measures, some of which are exemplified in this paper.