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.