The works of Jones and Kierzkowski (2005) were further
supplemented by Kimura and others, who argued that rapid
advances and innovations in communication and transport
facilitate the development of service links that combine the
fragmented production blocks and lead to sub-division of tasks and
reorganisation, resulting in economies of scale. Figure 2.2 illustrates
a schematic overview of production networks. This process of
fragmentation in production enables countries to specialise according
to their comparative advantages. Several studies conclude that more
efficient supply chains and better access to logistics services will make
a country’s trade globally competitive and create the conditions for
mutually beneficial production fragmentation across borders. As
production is increasingly shared or fragmented across borders,
simplification of trade processes and procedures would help
improve the time and costs associated with logistics.16 Nonetheless,
the importance of logistics sector policy in enhancing a country’s
trade and its production fragmentation across borders cannot be
overemphasised