Untapping the role of trade facilitation indicators, logistics and information technology in export expansion and diversification

Abstract

An efficient and consistent logistics network, as well as a transparent facilitation mechanism of cross-border trade, are critical to the country's export competitiveness. The quality of logistics services has been identified as an important determinant of international trade. We use gravity models to assess the impact of the World Bank's Logistic Performance Index (LPI) on Pakistan's exports. The findings show that improving logistics is critical for increasing exports. Individual indicators such as reasonably priced shipments, the ability to track and trace shipments, and trade and logistical transit standards are instrumental in boosting export flows.