Firm Inventory Behavior in East Africa

Firms normally keep certain inventories, including raw materials, work-in-progress, and finished goods, to operate seamlessly and not to miss possible business opportunities. But inventory is costly, and the optimal firm inventory differs depending...

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Main Authors:	Iimi, Atsushi, Humphrey, Richard Martin, Melibaeva, Sevara
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2015
Subjects:	TOTAL REVENUE VEHICLE OPERATING COSTS TRAFFIC CONGESTION EQUIPMENT NETWORK DATA BUSINESS OPPORTUNITIES GLOBAL MARKETS MATERIALS TRANSPORT INFRASTRUCTURE TRANSPORTATION COSTS RAIL LINES INFORMATION QUALITY OF TRANSPORT ELASTICITY TRAFFIC HIGHWAY SYSTEM PEAK DEMAND ROAD INFRASTRUCTURE INPUTS TRANSPORT SERVICES TRANSPORTATION INFRASTRUCTURE TRANSPORT ACCESS CUSTOMS CLEARANCE DRIVERS OPEN ACCESS LOCAL TRANSPORTATION TRANSPORT MODES ECONOMIC ACTIVITY DEVELOPMENT INSTITUTIONS VEHICLE DATA TRADE SYSTEM ROAD COSTS TRANSPORT OPERATORS ROAD NETWORK ROAD SECTOR TRANSPORT IMPACT OF TRANSPORT INVENTORY LEVEL INTERSTATE HIGHWAY SYSTEM DOMAIN RAILWAY NETWORK CUSTOMS RAIL LINE PRODUCTIVITY AVERAGE TRANSIT TIME CONNECTIVITY TRUE WEB MATERIAL RAIL STATIONS INVENTORIES RURAL ROADS ROUTE INVENTORY PHYSICAL DISTANCE FREIGHT COSTS INFRASTRUCTURE LAND USE TRANSACTIONS INFRASTRUCTURE INVESTMENT MANUFACTURING TECHNOLOGY TRANSACTION SYSTEM DEVELOPMENT CONGESTION RELIABILITY OPPORTUNITY COST TRANSPORTATION INVENTORY LEVELS TRANSIT INTERNATIONAL TRADE SUPPLY NETWORK INFRASTRUCTURE COSTS RESULTS VALUE COMPETITIVENESS FOREIGN DIRECT INVESTMENT ACCESSIBILITY DEMAND NETWORKS MOTORWAYS INFRASTRUCTURE DEVELOPMENTS DAYS OF INVENTORY PASSENGER TRAFFIC OPPORTUNITY COSTS ECONOMIC ORDER LEVELS OF INVENTORY RAILWAY HIGHWAYS ECONOMIC THEORY SUPPLY CHAIN MINISTRY OF TRANSPORT HIGHWAY INFRASTRUCTURE ROAD USER ROADS LOCAL ROADS RESULT HIGHWAY TRADE ICT INTERSTATE HIGHWAYS RAILWAYS GOODS THEORY BUSINESSES BUSINESS NETWORK COMPARATIVE ADVANTAGE AGGLOMERATION ECONOMIES RAILROADS PERFORMANCE BUSINESS ENVIRONMENT RAIL MARKET DEMAND ECONOMIC ACTIVITIES INVESTMENTS COMMUNICATION SUPPLY CHAIN MANAGEMENT ROAD CONDITIONS URBAN ROADS TRANSPORT COSTS COMMUNICATION TECHNOLOGY ROAD TRANSPORT VEHICLE OPERATING URBAN TRAFFIC CONGESTION URBAN TRAFFIC HIGHWAY CAPITAL FREIGHT USES USER BOTTLENECKS HISTORIC CITIES DEVELOPMENT POLICY
Online Access:	http://documents.worldbank.org/curated/en/2015/06/24570546/firm-inventory-behavior-east-africa http://hdl.handle.net/10986/22151

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recordtype	oai_dc
spelling	okr-10986-221512021-04-23T14:04:07Z Firm Inventory Behavior in East Africa Iimi, Atsushi Humphrey, Richard Martin Melibaeva, Sevara TOTAL REVENUE VEHICLE OPERATING COSTS TRAFFIC CONGESTION EQUIPMENT NETWORK DATA BUSINESS OPPORTUNITIES GLOBAL MARKETS MATERIALS TRANSPORT INFRASTRUCTURE TRANSPORTATION COSTS RAIL LINES INFORMATION QUALITY OF TRANSPORT ELASTICITY TRAFFIC HIGHWAY SYSTEM PEAK DEMAND ROAD INFRASTRUCTURE INPUTS TRANSPORT SERVICES TRANSPORTATION INFRASTRUCTURE TRANSPORT ACCESS CUSTOMS CLEARANCE DRIVERS OPEN ACCESS LOCAL TRANSPORTATION TRANSPORT MODES ECONOMIC ACTIVITY DEVELOPMENT INSTITUTIONS VEHICLE DATA TRADE SYSTEM ROAD COSTS TRANSPORT OPERATORS ROAD NETWORK ROAD SECTOR TRANSPORT IMPACT OF TRANSPORT INVENTORY LEVEL INTERSTATE HIGHWAY SYSTEM DOMAIN RAILWAY NETWORK CUSTOMS RAIL LINE PRODUCTIVITY AVERAGE TRANSIT TIME CONNECTIVITY TRUE WEB MATERIAL RAIL STATIONS INVENTORIES RURAL ROADS ROUTE INVENTORY PHYSICAL DISTANCE FREIGHT COSTS INFRASTRUCTURE LAND USE TRANSACTIONS INFRASTRUCTURE INVESTMENT MANUFACTURING TECHNOLOGY TRANSACTION SYSTEM DEVELOPMENT CONGESTION RELIABILITY OPPORTUNITY COST TRANSPORTATION INVENTORY LEVELS TRANSIT INTERNATIONAL TRADE SUPPLY NETWORK INFRASTRUCTURE COSTS RESULTS VALUE COMPETITIVENESS FOREIGN DIRECT INVESTMENT ACCESSIBILITY DEMAND NETWORKS MOTORWAYS INFRASTRUCTURE DEVELOPMENTS DAYS OF INVENTORY PASSENGER TRAFFIC OPPORTUNITY COSTS ECONOMIC ORDER LEVELS OF INVENTORY RAILWAY HIGHWAYS ECONOMIC THEORY SUPPLY CHAIN MINISTRY OF TRANSPORT HIGHWAY INFRASTRUCTURE ROAD USER ROADS LOCAL ROADS RESULT HIGHWAY TRADE ICT INTERSTATE HIGHWAYS RAILWAYS GOODS THEORY BUSINESSES BUSINESS NETWORK COMPARATIVE ADVANTAGE AGGLOMERATION ECONOMIES RAILROADS PERFORMANCE BUSINESS ENVIRONMENT RAIL MARKET DEMAND ECONOMIC ACTIVITIES INVESTMENTS COMMUNICATION SUPPLY CHAIN MANAGEMENT ROAD CONDITIONS URBAN ROADS TRANSPORT COSTS COMMUNICATION TECHNOLOGY ROAD TRANSPORT VEHICLE OPERATING URBAN TRAFFIC CONGESTION URBAN TRAFFIC HIGHWAY CAPITAL FREIGHT USES USER BOTTLENECKS HISTORIC CITIES DEVELOPMENT POLICY Firms normally keep certain inventories, including raw materials, work-in-progress, and finished goods, to operate seamlessly and not to miss possible business opportunities. But inventory is costly, and the optimal firm inventory differs depending on various economic conditions, including trade and transport costs. The paper examines firm inventory behavior in East Africa, in which transport connectivity, especially to the ports, is considered as one of the major business constraints. Using firm-level data from Burundi, Kenya, Rwanda, Tanzania, and Uganda, it is shown that transport connectivity significantly affects firm inventory behavior. In particular, road density and transport costs to the port are important to determine the optimal inventory level. With more roads in a city and/or cheaper access to the port, firms would hold smaller inventories. 2015-07-14T20:51:58Z 2015-07-14T20:51:58Z 2015-06 Working Paper http://documents.worldbank.org/curated/en/2015/06/24570546/firm-inventory-behavior-east-africa http://hdl.handle.net/10986/22151 English en_US Policy Research Working Paper;No. 7280 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa East Africa
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	TOTAL REVENUE VEHICLE OPERATING COSTS TRAFFIC CONGESTION EQUIPMENT NETWORK DATA BUSINESS OPPORTUNITIES GLOBAL MARKETS MATERIALS TRANSPORT INFRASTRUCTURE TRANSPORTATION COSTS RAIL LINES INFORMATION QUALITY OF TRANSPORT ELASTICITY TRAFFIC HIGHWAY SYSTEM PEAK DEMAND ROAD INFRASTRUCTURE INPUTS TRANSPORT SERVICES TRANSPORTATION INFRASTRUCTURE TRANSPORT ACCESS CUSTOMS CLEARANCE DRIVERS OPEN ACCESS LOCAL TRANSPORTATION TRANSPORT MODES ECONOMIC ACTIVITY DEVELOPMENT INSTITUTIONS VEHICLE DATA TRADE SYSTEM ROAD COSTS TRANSPORT OPERATORS ROAD NETWORK ROAD SECTOR TRANSPORT IMPACT OF TRANSPORT INVENTORY LEVEL INTERSTATE HIGHWAY SYSTEM DOMAIN RAILWAY NETWORK CUSTOMS RAIL LINE PRODUCTIVITY AVERAGE TRANSIT TIME CONNECTIVITY TRUE WEB MATERIAL RAIL STATIONS INVENTORIES RURAL ROADS ROUTE INVENTORY PHYSICAL DISTANCE FREIGHT COSTS INFRASTRUCTURE LAND USE TRANSACTIONS INFRASTRUCTURE INVESTMENT MANUFACTURING TECHNOLOGY TRANSACTION SYSTEM DEVELOPMENT CONGESTION RELIABILITY OPPORTUNITY COST TRANSPORTATION INVENTORY LEVELS TRANSIT INTERNATIONAL TRADE SUPPLY NETWORK INFRASTRUCTURE COSTS RESULTS VALUE COMPETITIVENESS FOREIGN DIRECT INVESTMENT ACCESSIBILITY DEMAND NETWORKS MOTORWAYS INFRASTRUCTURE DEVELOPMENTS DAYS OF INVENTORY PASSENGER TRAFFIC OPPORTUNITY COSTS ECONOMIC ORDER LEVELS OF INVENTORY RAILWAY HIGHWAYS ECONOMIC THEORY SUPPLY CHAIN MINISTRY OF TRANSPORT HIGHWAY INFRASTRUCTURE ROAD USER ROADS LOCAL ROADS RESULT HIGHWAY TRADE ICT INTERSTATE HIGHWAYS RAILWAYS GOODS THEORY BUSINESSES BUSINESS NETWORK COMPARATIVE ADVANTAGE AGGLOMERATION ECONOMIES RAILROADS PERFORMANCE BUSINESS ENVIRONMENT RAIL MARKET DEMAND ECONOMIC ACTIVITIES INVESTMENTS COMMUNICATION SUPPLY CHAIN MANAGEMENT ROAD CONDITIONS URBAN ROADS TRANSPORT COSTS COMMUNICATION TECHNOLOGY ROAD TRANSPORT VEHICLE OPERATING URBAN TRAFFIC CONGESTION URBAN TRAFFIC HIGHWAY CAPITAL FREIGHT USES USER BOTTLENECKS HISTORIC CITIES DEVELOPMENT POLICY
spellingShingle	TOTAL REVENUE VEHICLE OPERATING COSTS TRAFFIC CONGESTION EQUIPMENT NETWORK DATA BUSINESS OPPORTUNITIES GLOBAL MARKETS MATERIALS TRANSPORT INFRASTRUCTURE TRANSPORTATION COSTS RAIL LINES INFORMATION QUALITY OF TRANSPORT ELASTICITY TRAFFIC HIGHWAY SYSTEM PEAK DEMAND ROAD INFRASTRUCTURE INPUTS TRANSPORT SERVICES TRANSPORTATION INFRASTRUCTURE TRANSPORT ACCESS CUSTOMS CLEARANCE DRIVERS OPEN ACCESS LOCAL TRANSPORTATION TRANSPORT MODES ECONOMIC ACTIVITY DEVELOPMENT INSTITUTIONS VEHICLE DATA TRADE SYSTEM ROAD COSTS TRANSPORT OPERATORS ROAD NETWORK ROAD SECTOR TRANSPORT IMPACT OF TRANSPORT INVENTORY LEVEL INTERSTATE HIGHWAY SYSTEM DOMAIN RAILWAY NETWORK CUSTOMS RAIL LINE PRODUCTIVITY AVERAGE TRANSIT TIME CONNECTIVITY TRUE WEB MATERIAL RAIL STATIONS INVENTORIES RURAL ROADS ROUTE INVENTORY PHYSICAL DISTANCE FREIGHT COSTS INFRASTRUCTURE LAND USE TRANSACTIONS INFRASTRUCTURE INVESTMENT MANUFACTURING TECHNOLOGY TRANSACTION SYSTEM DEVELOPMENT CONGESTION RELIABILITY OPPORTUNITY COST TRANSPORTATION INVENTORY LEVELS TRANSIT INTERNATIONAL TRADE SUPPLY NETWORK INFRASTRUCTURE COSTS RESULTS VALUE COMPETITIVENESS FOREIGN DIRECT INVESTMENT ACCESSIBILITY DEMAND NETWORKS MOTORWAYS INFRASTRUCTURE DEVELOPMENTS DAYS OF INVENTORY PASSENGER TRAFFIC OPPORTUNITY COSTS ECONOMIC ORDER LEVELS OF INVENTORY RAILWAY HIGHWAYS ECONOMIC THEORY SUPPLY CHAIN MINISTRY OF TRANSPORT HIGHWAY INFRASTRUCTURE ROAD USER ROADS LOCAL ROADS RESULT HIGHWAY TRADE ICT INTERSTATE HIGHWAYS RAILWAYS GOODS THEORY BUSINESSES BUSINESS NETWORK COMPARATIVE ADVANTAGE AGGLOMERATION ECONOMIES RAILROADS PERFORMANCE BUSINESS ENVIRONMENT RAIL MARKET DEMAND ECONOMIC ACTIVITIES INVESTMENTS COMMUNICATION SUPPLY CHAIN MANAGEMENT ROAD CONDITIONS URBAN ROADS TRANSPORT COSTS COMMUNICATION TECHNOLOGY ROAD TRANSPORT VEHICLE OPERATING URBAN TRAFFIC CONGESTION URBAN TRAFFIC HIGHWAY CAPITAL FREIGHT USES USER BOTTLENECKS HISTORIC CITIES DEVELOPMENT POLICY Iimi, Atsushi Humphrey, Richard Martin Melibaeva, Sevara Firm Inventory Behavior in East Africa
geographic_facet	Africa East Africa
relation	Policy Research Working Paper;No. 7280
description	Firms normally keep certain inventories, including raw materials, work-in-progress, and finished goods, to operate seamlessly and not to miss possible business opportunities. But inventory is costly, and the optimal firm inventory differs depending on various economic conditions, including trade and transport costs. The paper examines firm inventory behavior in East Africa, in which transport connectivity, especially to the ports, is considered as one of the major business constraints. Using firm-level data from Burundi, Kenya, Rwanda, Tanzania, and Uganda, it is shown that transport connectivity significantly affects firm inventory behavior. In particular, road density and transport costs to the port are important to determine the optimal inventory level. With more roads in a city and/or cheaper access to the port, firms would hold smaller inventories.
format	Working Paper
author	Iimi, Atsushi Humphrey, Richard Martin Melibaeva, Sevara
author_facet	Iimi, Atsushi Humphrey, Richard Martin Melibaeva, Sevara
author_sort	Iimi, Atsushi
title	Firm Inventory Behavior in East Africa
title_short	Firm Inventory Behavior in East Africa
title_full	Firm Inventory Behavior in East Africa
title_fullStr	Firm Inventory Behavior in East Africa
title_full_unstemmed	Firm Inventory Behavior in East Africa
title_sort	firm inventory behavior in east africa
publisher	World Bank, Washington, DC
publishDate	2015
url	http://documents.worldbank.org/curated/en/2015/06/24570546/firm-inventory-behavior-east-africa http://hdl.handle.net/10986/22151
_version_	1764450288835493888

Firm Inventory Behavior in East Africa

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