44
Figure 56: Trading Across Borders (Border/Documentary Compliance Times)
Source: World Bank Doing Business Data
According to OECD (2010), IMF (2010) and Teravaninthorn and Raballand (2009), restricted
logistics services, lack of adequate infrastructure, inefficiency of the ports are major problems
of transport which lead to high transport costs. Logistics Performance Index (LPI), developed by
the World Bank27 measures the efficiency of logistics sector in 160 countries. The World Bank’s
LPI is the weighted average of six components: The efficiency of customs and border
management, clearance, the quality of trade and transport infrastructure, the ease of arranging
competitively priced shipments, the competence and quality of logistics services, the ability to
track and trace consignments and the frequency with which shipments reach consignees within
scheduled or expected delivery times. The LPI is used for comparative analysis and has a score
between 1 and 5. The LPI was conducted in 2007, 2010, 2012, 2014, 2016 and 2018. Tables 7
and 8 illustrate the OIC Countries with the highest and lowest LPI scores for the last three
periods. The figures illustrate that there is a wide gap between countries. Furthermore,
27 World Bank, Connecting to Compete 2018, Trade Logistics in the Global Economy, The Logistics Performance Index and Its
Indicators
0 100 200 300 400 500 600
Egypt
Pakistan
Chad
Bangladesh
Afghanistan
Iraq
Algeria
Nigeria
Sudan
Cameroon
Documentary Compliance Times for the
Lowest Ranked Members
Time to import (hours) Time to export (hours)
0 20 40 60 80 100
Azerbaijan
Suriname
Bahrain
Oman
Turkey
Morocco
Malaysia
Jordan
Palestine
Albania
Documentary Compliance Times for the
Highest Ranked Members
Time to import (hours) Time to export (hours)
0 100 200 300 400
Egypt
Pakistan
Chad
Bangladesh
Afghanistan
Iraq
Algeria
Nigeria
Sudan
Cameroon
Border Compliance Times for the Lowest
Ranked Members
Time to import (hours) Time to export(hours)
0 20 40 60 80 100 120
Azerbaijan
Suriname
Bahrain
Oman
Turkey
Morocco
Malaysia
Jordan
Palestine
Albania
Border Compliance Times for the Highest
Ranked Members
Time to import (hours) Time to export(hours)