Most of the variation in time and cost across countries in the case of the logistics services sector stem from the differences in the quality and cost of infrastructure as
well as differences in policy, procedure, and institution. They have a significant effect
on trade competitiveness and hence economic integration. According to CIES (2006),
the lack of trade friendliness in the case of services sectors (e.g. logistics), has a much
greater impact on economic performance as compared to lack of trade friendliness in
case of the goods sector (e.g. automotives). This is because services form a significant
part of the economic activity in all countries. Any inefficiency in logistics service
delivery impedes economic growth. Therefore, these measures need to be identified and
addressed to achieve greater economic integration.