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Rwanda’s Rise in the Logistics Performance Index

Wizemann, Moritz Karl LU and Simon, Daniel LU (2025) EOSK12 20251
Department of Economic History
Abstract
Rwanda has undergone a remarkable improvement in logistics performance, defined as the cost, time, and complexity involved in trade facilitation. Specifically, the landlocked country has surged in the Logistics Performance Index (LPI) by the World Bank from one of the globally worst-performing countries in 2007 to outperforming average low-income and Sub-Saharan African countries since 2016. Grounded in New Institutional Economics (NIE), this thesis examines which reforms, policy changes, strategies, and initiatives in the areas of institutional determinants and economic investments are drivers behind this extraordinary development. Applying process tracing, supported by descriptive statistics, we find that Rwanda restructured its weak... (More)
Rwanda has undergone a remarkable improvement in logistics performance, defined as the cost, time, and complexity involved in trade facilitation. Specifically, the landlocked country has surged in the Logistics Performance Index (LPI) by the World Bank from one of the globally worst-performing countries in 2007 to outperforming average low-income and Sub-Saharan African countries since 2016. Grounded in New Institutional Economics (NIE), this thesis examines which reforms, policy changes, strategies, and initiatives in the areas of institutional determinants and economic investments are drivers behind this extraordinary development. Applying process tracing, supported by descriptive statistics, we find that Rwanda restructured its weak institutions through reforms that enabled the implementation of substantial coordinated investment strategies in the transport sector. Furthermore, Rwanda’s integration into the East African Community reduced trade barriers through regional mechanisms that improved cross-border efficiency. Their sequencing and alignment illustrate how institutional improvements, investment coordination, and trade facilitation reinforced each other over time, resulting in sustained logistics performance gains within the framework of New Institutional Economics. (Less)
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author
Wizemann, Moritz Karl LU and Simon, Daniel LU
supervisor
organization
course
EOSK12 20251
year
type
M2 - Bachelor Degree
subject
keywords
Rwanda, Logistics Performance, Institutional Quality, Economic Investment, New Institutional Economics, Regional Integration, EAC, Infrastructure, Developing Countries, Landlocked Countries, Process Tracing, Descriptive Statistics, Policy, Reforms, Logistics Performance Index
language
English
id
9200373
date added to LUP
2025-06-17 14:27:55
date last changed
2025-06-17 14:27:55
@misc{9200373,
  abstract     = {{Rwanda has undergone a remarkable improvement in logistics performance, defined as the cost, time, and complexity involved in trade facilitation. Specifically, the landlocked country has surged in the Logistics Performance Index (LPI) by the World Bank from one of the globally worst-performing countries in 2007 to outperforming average low-income and Sub-Saharan African countries since 2016. Grounded in New Institutional Economics (NIE), this thesis examines which reforms, policy changes, strategies, and initiatives in the areas of institutional determinants and economic investments are drivers behind this extraordinary development. Applying process tracing, supported by descriptive statistics, we find that Rwanda restructured its weak institutions through reforms that enabled the implementation of substantial coordinated investment strategies in the transport sector. Furthermore, Rwanda’s integration into the East African Community reduced trade barriers through regional mechanisms that improved cross-border efficiency. Their sequencing and alignment illustrate how institutional improvements, investment coordination, and trade facilitation reinforced each other over time, resulting in sustained logistics performance gains within the framework of New Institutional Economics.}},
  author       = {{Wizemann, Moritz Karl and Simon, Daniel}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Rwanda’s Rise in the Logistics Performance Index}},
  year         = {{2025}},
}