COMCEC Trade Outlook 2019
45
For instance, while in Albania, ranking first in trading across borders amongst the OIC, the cost
of border compliance in exporting is 55 USD, it goes up to 468 USD in Surinam. On the other
hand, in terms of border compliance times in exporting, it takes 9 hours for border compliance
in Albania while it takes 71 hours (approx..3 days) in Bahrain. Reducing trade costs in the OIC
member states is important to gain access and to be more competitive in the international
markets and attract foreign direct investments.
Figure 55: Trading Across Borders (Border / Documentary Compliance Costs)
Source: World Bank Doing Business 2019 Data
Figure 56: Trading Across Borders (Border/Documentary Compliance Times)
Source: World Bank Doing Business 2019 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 Bank28 measures the efficiency of
logistics sector in 160 countries. The World Bank’s LPI is the weighted average of six
components: i)The efficiency of customs and border management, ii)clearance, the quality of
28 World Bank, Connecting to Compete 2018, Trade Logistics in the Global Economy, The Logistics Performance Index and Its
Indicators
0 100 200 300
Azerbaijan
Bahrain
Jordan
Oman
Kyrgyz Republic
Morocco
Palestine
Malaysia
Turkey
Albania
Documentary Compliance Costs for the
Highest Ranked Members
Cost to import (USD) Cost to export (USD)
0 200 400 600
Azerbaijan
Jordan
Kyrgyz Republic
Palestine
Turkey
Border Compliance Costs for the
Highest Ranked Members
Cost to import (USD) Cost to export (USD)
0 50 100
Azerbaijan
Bahrain
Jordan
Oman
Kyrgyz Republic
Morocco
Palestine
Malaysia
Turkey
Albania
Documentary Compliance Times for
the Highest Ranked Members
Time to import (hours) Time to export (hours)
0 50 100
Azerbaijan
Bahrain
Jordan
Oman
Kyrgyz Republic
Morocco
Palestine
Malaysia
Turkey
Albania
Border Compliance Times for the
Highest Ranked Members
Time to import (hours) Time to export (hours)