Trade and Logistics: An East Asian Perspective


Many of the East Asian countries have vast remote areas with poor connections to other domestic markets, as well as to international sea and air gateways. The problem begins with low population density and geographic remoteness, but it is worsened by the lack of basic transport infrastructure. Of course, where markets are distant and trade volumes are low, it is difficult to justify building and maintaining even basic infrastructure. But this creates a vicious cycle, resulting in transport costs so high that these remote areas become nearly autarkic. Remoteness is not limited to landlocked regions. In the Philippines, Mindanao is very poorly connected to population cores, with limited containerized cargo services.

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