Pan-Pacific Conference XXXIV. Designing New Business Models in Developing Economies

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imports increased with decreases in the number of
days and lead time to import.
Figure 4: Imports and time
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2006 2007 2008 2009 2010 2011 2012 2013 2014
Figure 5 depicts the trend associations between
exports of goods and time variables. The time to
export (days) and lead time to import (days)
declined between 2006 and 2014. This in turn
resulted in improvements in the LPI sub-index
frequency with which shipments reach consignee
within scheduled or expected time improving. A
reduction in the number of days and lead time to
export appears to be associated with increases in
export volumes.
2006 2007 2008 2009 2010 2011 2012 2013 2014
Figure 5: Exports and time
Connectivity
Connectivity is represented by the following
indicators: liner shipping connectivity index, rail
lines (total route-km) and air transport, freight
(million-ton-km). For air freight and rail lines
increases are observed from 2005 until 2011.
Connectivity in these modes stagnates from 2011
onwards. This is in line with Limão and Venables’
(2001) findings that transport connectivity affects
accessibility and the volumes of trade especially in
Africa with limited connectivity inhibiting higher
volumes of trade. Contrary to this liner shipping
connectivity increases between 2005 to 2014.
There appears to be a strong correlation between
liner shipper connectivity, exports and imports. Air
freight and rail lines are largely unassociated with
imports and exports.
Figure 6: Exports, imports and connectivity
Infrastructure
The association between infrastructure and trade is
inferred by analysing the World Economic Forum’s
(WEF) quality of port infrastructure index, rail lines
(total route-km) and the LPI sub-index quality of
trade and transport related infrastructure.
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Improvements in all infrastructure variables, with
the exception of rail (total route km) are seen to be
positively associated with increases in GDP,
imports and exports.
A negative relationship exists between the total
route km of rail and imports and exports. This can
be attributed to closing down of private sidings as
well as the deterioration of rail infrastructure in
South Africa. Martínez-Zarzoso [14] found that
improvements in transport infrastructure reduced
transport costs and increased the volumes of
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2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
ceramics exports in Spain.
Figure 7: Exports, imports and infrastructure
It is important to note that the rail lines (total route
km) under the infrastructure variable differs from
that of connectivity because as they were plotted
over different time periods. Under the connectivity
analysis the period was from 2005. In the
infrastructure discussion, the period covered was
from 2007. This is a fundamental flaw in using
trend lines, as they do not take preceding data into
account.
Customs procedures
Figures 8 and 9 show the trend association between
exports and customs procedures and imports and
customs procedures respectively.
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Figure 8: Exports and customs procedures
Customs procedures are assessed by analysing the
LPI sub-index- efficiency of customs clearance
process; the WEF burden of customs procedures,
cost to export per container, number of documents
to export (import); time in days to export (import);
and lead time in day to export (import). The LPI
sub-index improved slightly. These improvements
are concurrent with improvements in the burden of
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