Effect of Logistics Strategies on Import and Export Couple with Gross Domestics Product: South Asian Perspective

Abstract

This paper assesses and analyzes the existing relationship between the logistics strategies, imports and exports, transit load time, and the growth of GDP (Gross Domestic Project) from the perspective of the South Asia region. Time is the most important attribute to be considered since the inefficient management of time would not only hamper the trade output, but it will also impact the volume of imports and exports. There are certain products that have a short shelf-life which makes their transit time-sensitive, and any delays or careless processing of these items can seriously impact the international trade of a country. The recent improvements in scientific methods to preserve the products, and enhancements in transportation techniques have significantly increased the demand for such time-sensitive products, and it is observed that the demand for such products is higher in SAARC (South Asian Association for Regional Cooperation) countries. And there is a potential need to enhance the existing transportation frameworks using the competitive logistics standards, so the needs imposed by the modern day’s market community could be catered. Previously described time-sensitive items may include a variety of products such as lifesaving medicine, electronic equipment, clothing, and perishables. As mentioned earlier, the developing countries are the biggest advocate to cut-down a variety of logistics factors that are associated with the Leadtime. The WDI (World Development Indicator) was utilized to collect the penal data, and for this purpose, the World Bank’s database from the year 1970 to 2014 was consulted. This particular study made use of the Granger Causality Test and Panel Vector Error Correction model to test the existing long-range and short-range relationships between the variables. The results produced by the examination suggest that there is a possibility that measures can be employed in comparatively poor countries at a reduced time and cost. Thus, following the formation of a relationship between the aforementioned stealth policies, procedures, and factors, the paper identifies a prominent indicator of economic growth.