The Role of Logistics Performance in Promoting Trade

There is widespread evidence that efficiency of logistics systems is a significant determinant of bilateral trade, but the magnitude of the effect may vary according to economic and geographical characteristics. An important aspect concerning the impact of logistics performance on trade volumes is the income level. This paper presents the findings of a gravity model, which is empirically tested to assess the extent to which logistics performance constitutes a facilitator to international trade. We compare the relative impact of various logistics performance dimensions on trade, and explore the differences over country income levels. Our research differs from previous studies in adopting an income-level approach, with an analysis of the impact of various logistics performance dimensions. We observed that the regulatory or trade facilitation environment could have divergent effects depending on the level of per capita income. Particularly, low-income economies realize highest benefits of their logistics excellence. For low- and lower-middle-income economies, logistics excellence increases exports more than imports. On the contrary, imports of upper-middle- and high-income economies tend to benefit more from better logistics performance than their exports. Accordingly, collaborative acts to improve logistics performance of partner countries may have a higher impact on the exports of an upper-middle-income country than improving only the exporter’s performance.

• Record URL:
  • https://doi.org/10.1057/s41278-017-0094-4
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/14792931
• Supplemental Notes:
  • Copyright © 2017 Macmillan Publishers Ltd. The contents of this paper reflect the views of the authors and do not necessarily reflect the official views or policies of the Transportation Research Board or the National Academy of Sciences.
• Authors:
  • Çelebi, Dilay
• Publication Date: 2019-9

Language

• English

Media Info

• Media Type: Web
• Features: References;
• Pagination: pp 307-323
• Serial:
  • Maritime Economics & Logistics
  • Volume: 21
  • Issue Number: 3
  • Publisher: Palgrave Macmillan
  • ISSN: 1479-2931
  • EISSN: 1479-294X
  • Serial URL: https://link.springer.com/journal/41278

Subject/Index Terms

• TRT Terms: Exports; Gravity models; International trade; Logistics
• Identifier Terms: Logistics Performance Index
• Subject Areas: Economics; Freight Transportation; Marine Transportation;

Filing Info

• Accession Number: 01717992
• Record Type: Publication
• Files: TRIS
• Created Date: Sep 24 2019 3:05PM