The role of logistics performance and decreasing of trade competitiveness in ASEAN+3’s manufacturing products

Abstract

ASEAN Countries members plus Japan, South Korea, and China (ASEAN+3’S) logistics performance play a significant role in maintaining and improving their export and import values, depending on the various commodities trade. Meanwhile, during uncertain situations today, the stakeholders need to enhance the capability of import and export activities to improve logistics performance. The study focused on the competitiveness of the manufacturing products traded by these countries. The study used panel data analysis based on the panel data of 11 years (2008-2018) from the 10 ASEAN+3 countries. Export value and Net Comparative Advantage (NCA) index (including net export and trade openness) were used as dependent variables in the two model studies, and logistics performance was the primary variable. The result shows that logistics performance positively affects the export and trade competitiveness models of ASEAN+3’s manufacturing products. The Logistics Performance Index (LPI) provides estimates that suggest that logistics performance has a significant impact on ASEAN + 3 export value (ExpM) and manufacturing trade competitiveness (NCAM). Meanwhile, there are different results of the effects of macroeconomic variables between the model of export value (ExpM) and the NCAM in the manufacturing in ASEAN+3’s. The ExpM model follows the theory that Gross Domestic Product (GDP) and Foreign Direct Investment (FDI) increase the competitive value in ASEAN+3 countries. Meanwhile, in the NCAM model, GDP and FDI reduce trade competitiveness because of the high value of ASEAN+3 manufacturing imports.