Abstract

Public–Private Partnerships (PPPs) have become known as one of the alternatives for increasing the effectiveness of border controls. Excessive controls and the lack of cooperation can hinder trade in global operations. On the other hand, Trade Facilitation (TF) is a response to the observed growth in international supply chain operations over the last few years. Since TF involves a relationship between public and private agents, alternatives to solutions within the field of international trade fall into these types of partnerships. However, simply establishing a relation between both agents does not ensure that all of the benefits of TF will be reached. The objective of this research is to propose a theoretical model, one that can indicate which factors have the most influence over TF-oriented PPPs. The relationship between each variable and the performance of a partnership were tested. To validate the proposed model, we used Structural Equation Modelling (SEM). The findings show which factors influence the success of TF-oriented PPPs, using the Authorized Economic Operator (AEO) as an example. The data were gathered both at the national and international levels, focusing on professionals from the private and public sectors who either work with TF within their regular functions or have expertise on the subject. The results show that the factors that have the most influence over the performance of TF-oriented PPPs are, in order, the “micro-environment”, the “abilities of parties” and the “macro-environment”. Further PPPs that focus on TF may consider this model for implementation.

Highlights

  • In has been demanded that border agencies, importers and exporters improve their processes and technologies to help make the movement of goods across borders quicker, smoother and safer

  • Regarding the measurement of the performance of private partnership (PPP), all dimensions that formed that construct provided questions with high factorial loads. Such dimensions included “operational gains in time”, “operational gains in bureaucracy”, “financial gains” and “indirect competitive gains”. Since a model such as this model has never been validated before, the strategy of this research was to create an initial concept of a model that explains which factors have the most influence on a Trade Facilitation (TF)-oriented PPP

  • The reason was to understand the major factors that had the most influence on PPPs to create a “compass” that could lead to further research

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Summary

Introduction

In has been demanded that border agencies, importers and exporters improve their processes and technologies to help make the movement of goods across borders quicker, smoother and safer. Trade Facilitation (TF) is an answer to the increased uncertainty in global supply chain operations. TF can be explained as the application of methods for the reduction of barriers that can hinder trade in global operations. One of the greatest benefits of TF is the reduction of traderelated costs. When applied to developing countries, the need for TF measures has accelerated as a consequence of the increased participation of trade in Gross Domestic Product (GDP) and the dependence on faster supply chain management techniques, among other factors (Hellqvist, 2003). TF presents long-term savings and benefits to a country, there are many set-up and operating costs involved in the implementation of measures

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