The role of logistics performance in international trade: a developing country perspective

Abstract

The study examines the roles of each dimension of logistics performance in merchandised exports and imports of goods and services using a pooled random-effects General Least Square (GLS) regression. The study also attempts to embed the latest thinking of transaction cost economics (TCE) as a conceptual framework in the analysis of logistics performance. The findings show that all the six logistics performance dimensions which include tracking and tracing, logistics quality, international shipments, customs clearance, timeliness, and infrastructure positively and significantly determine merchandised exports and imports of goods and services. The study suggests continuous improvements in logistics service quality, shipments, tracking and tracing, timeliness, customs clearance, and infrastructures that can significantly increase the volumes of the merchandised exports and imports of goods and services.