The Role and the Process of a Maritime Hub in International Trade: An Example in Djibouti

Abstract

International trade is the exchange of goods and services between countries, in addition, The hub perception is referred to by different definitions based on its functioning, including logistics center, logistics zone, freight terminal, distribution process, and warehouse. However, Geographical location plays a role that encourages a country's economic improvements. This study investigated, the role and the process of maritime hubs (i.e. export and import) in international trade, as an example of Djibouti, which was explained through in-depth interviews. how Djibouti is considered a maritime hub in terms of exportation and exportation, logistics operations, and its implication to international trade in literature as well as its location in the Horn of Africa, the study aims to reveal the point of view of the companies that provide goods and services. study, as a research method, the study is examined in in-depth interviews with 15 companies within the integrated international logistics (i.e. goods and services) and transportation sectors. According to the findings, half of the companies emphasize enhanced resource flows, particularly technology, and infrastructure, as well as employment growth, however, agreed on the potential of Djibouti regional maritime hub in the Horn of Africa.