How logistics performance promote the international trade volume? A comparative analysis of developing and developed countries

Abstract

This paper analyses how logistics performance affects international trade volume and compares the different effects between developing and developed countries by employing a gravity model with panel data from 43 countries in 2010, 2012 and 2014. The findings show that an improvement of logistics performance index (LPI) has more impact on export volume than on import volume. And it has a more powerful influence on developed countries' trade volumes than on developing countries' trade volumes. To improve the competitiveness of developing countries' exports in a global economy, developing countries should first and foremost prioritise improvement in procedural sectors like the customs process, tracking, and infrastructure.

Transport Infrastructure Quality and Logistics Performance in Exports

“…Martí, Puertas, and García (2014a) found that countries that improve their logistics performance also experienced increased trade. Wang and Choi (2018) confirmed that logistics performance benefits exports in developing economies, especially when improving customs clearance and infrastructure in these countries. Previously, Martí, Puertas, and García (2014b) evidenced the significance of logistics performance when dealing with complex goods.…”

Clustering of Developing Countries in Terms of Logistics Market Development with Fuzzy Clustering and Discriminant Analysis

“…In the literature, there are studies dealing with the relationship between the logistics performance and trade (Martí et al, 2014a;Martí et al, 2014b;Puertas et al, 2014;Wang and Choi, 2018). These studies clearly show that logistics performance plays an important role in trade activities.…”

“…Martí et al (2014b) demonstrated the importance of logistics performance in facilitating trade. Wang and Choi (2018) determined that logistics performance is effective in increasing the volume of exports and imports with the panel data analysis method. Beysenbaev (2018) showed the logistics performances among the key factors that cause fluctuations in the trade volumes of the countries.…”

Competitiveness based logistics performance index: An empirical analysis in Organisation for Economic Co-operation and Development countries

“…It has been determined that Japan, Germany, Togo, Benin, and the United States are the countries with the highest LCLP values. Wang and Choi (2018) examined the impact of the logistics performance of developed and developing countries on the export and import volumes of the countries. It has been understood that when the logistics performance improves, the countries are affected by the export volume more than the import volume.…”

“…These basic categories are "(i) customs, (ii) infrastructure, (iii) international shipment, (iv) logistics services, (v) track and trace, (vi) timeliness". It is known that academic studies benefit from logistics performance indicators published by LPI (Marti et al, 2014;Erkan, 2014;Ekici et al, 2016;Wang & Choi, 2018;Rashidi & Cullinane, 2019;Kabak et al, 2020). The frequent utilization of the LPI in the literature serves to legitimize its application as a performance indicator for countries' logistics performance.…”