Abstract
The Association of Southeast Asian Nations’ (ASEAN) embrace of regional economic integration is aimed at a more cohesive and integrated economy by 2025. To this end, ASEAN seeks to enhance trade and ascend the global value chain, facilitated by highly performing logistics. According to World Bank, the Logistics Performance Index (LPI) for Southeast Asia region ranks behind their major trading partners (e.g. China, Japan, Korea, the European Union and the United States of America). This study thus examines and compares ASEAN’s logistics performance with that of these partners. Using random effects model, the aim is to determine the significance of each of the six dimensions of the LPI to the bilateral trade value. Findings show that the efficiency of customs and quality of infrastructure are significant for ASEAN. Based on the comparative study, the findings enable policy-makers to identify the dimensions for improvement towards logistics performance.
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