Some clarification and formalization of the concept has been
proposed. Trade logistics is supported by companies that operate
in networks. International transportation, shipping, or air transport
takes place in complex networks structured in hubs and spokes.
The connectivity of a country, or perhaps one of its ports or airports,
is defined as how “central” this country is to those networks. Connectivity
partly reflects geography and the global structure of transportation
and logistics networks. Country-specific trade transaction
costs coming from supply chain inefficiencies increase economic
distance and reduce connectivity. Hence policies that increase logistics
performance improve connectivity, notwithstanding network
geography.