The impact of infrastructure on Colombian exports

An article in the Economist (Sept 17,2011) describes the poor infrastructure in Colombia as resulting in export costs of a container that are 20 % higher than a similar task in Argentina. Thus, the poor infrastructure is estimated to be equivalent to a 10-15 % tax.  The Colombian govt estimates that improving infrastructure could raise the country GDP by 1%. This is a great example of a link between logistics capability and prosperity. Should one expect improvements in Colombia to be accompanied by similar changes in competing countries in the region so that the expected growth dividend will be much lower than expected ? Will infrastructure alone improve exports or will there need to be similar changes in approvals and customs to realize benefits ? Will better infrastructure enable exports of commodities or exports of value added manufacturing that can generate higher growth ?

About aviyer2010

Professor
This entry was posted in Global Contexts, Operations Management, Supply Chain Issues and tagged , , , . Bookmark the permalink.

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