If we are considering pushing more people to start businesses in developing countries & building out their own supply chain /​ logistics, then what might we think about interventions to ease & accelerate logistics in more widespread ways?
Like should EAs focus some support for things like the further development of drone delivery or cargo airships, which could lower the cost of transport & trade to, from, & among developing countries, especially those without good ports, roads, or rail?
There are African markets where long-distance inland transport costs significantly raise the cost of business and shrink the opportunity set. But in most markets this is not the binding constraint. I would not prioritize transport innovation when there are tractable opportunities inside existing export-focused business models.
Thanks for the clarification. I’ve had a curiosity if these types of logistics developments would have a significant impact, but had yet to run into anyone with good context to give a rough check /​ back-of-the-envelope potential impact calculation.
The point of things like drone & cargo airship developments is more point to point delivery without extra things like unloading & loading trucks that navigate unimproved roads.
Yeah, only in very edge cases, last mile is much cheaper in LMIC as labour is cheaper. Then it’s just about better roads which increase welfare hugely.
If we are considering pushing more people to start businesses in developing countries & building out their own supply chain /​ logistics, then what might we think about interventions to ease & accelerate logistics in more widespread ways?
Like should EAs focus some support for things like the further development of drone delivery or cargo airships, which could lower the cost of transport & trade to, from, & among developing countries, especially those without good ports, roads, or rail?
Cargo Airships Could Be Big:
https://​​www.elidourado.com/​​p/​​cargo-airships
Cargo Airships Are Happening:
https://​​www.elidourado.com/​​p/​​airship-industries
There are African markets where long-distance inland transport costs significantly raise the cost of business and shrink the opportunity set. But in most markets this is not the binding constraint. I would not prioritize transport innovation when there are tractable opportunities inside existing export-focused business models.
Thanks for the clarification. I’ve had a curiosity if these types of logistics developments would have a significant impact, but had yet to run into anyone with good context to give a rough check /​ back-of-the-envelope potential impact calculation.
No, global shipping is already ultra efficient. The problem isn’t the shipping industry except in niche cases.
Last mile delivery is efficient & not a problem?
The point of things like drone & cargo airship developments is more point to point delivery without extra things like unloading & loading trucks that navigate unimproved roads.
Yeah, only in very edge cases, last mile is much cheaper in LMIC as labour is cheaper. Then it’s just about better roads which increase welfare hugely.