The importance of the Logistics Performance Index in international trade

By L. Marti, R. Puertas, Leandro García. 2014

304 citations recorded by the source corpus.

Logistics and transport increasingly play a pivotal role in international trade relations. The Logistics Performance Index (LPI) analyses differences between countries in terms of customs procedures, logistics costs and the quality of the infrastructure for overland and maritime transport. The aim of this article is to analyse the impact that each of these components has on trade in emerging economies using a gravity model. Furthermore, the study also attempts to detect possible advances in logistics in developing countries, which are grouped into five regions (Africa, South America, Far East, Middle East and Eastern Europe) by comparing the first LPI data published in 2007 with the most recent data, released in 2012. The results obtained reveal that improvements in any of the components of the LPI can lead to significant growth in a country’s trade flows. Specifically, LPI components are becoming increasingly important for international trade in many countries in Africa, South America and Eastern Europe.

Subfields: Economics and Econometrics, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/30e44bb717708d6a09c56b3b5afeffcc412bbcc0

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In Economics and Econometrics

1. W. S. V. Roekel
2. Jafar Rezaei
3. Lori Tavasszy

In Strategy and Management

1. W. S. V. Roekel
2. Jafar Rezaei
3. Lori Tavasszy

Citations in the corpus

• Measuring the relative importance of the logistics performance index indicators using Best Worst Method (2018, methodology): “…to include almost all countries in the world, which has increased the importance of logistics in international trade and made it one of the key elements in the development of a country (Martí et al., 2014; Razzaque, 1997), which in turn created a need for a logistics performance measuring system.”
• The Impact of Services Trade Restrictiveness on Trade Flows (2017, unknown): “Marti et al. (2014) also apply a gravity model to gauge the impact on trade flows of an index capturing the “trade-friendliness” of the importer and the exporter’s policies, but they focus on trade facilitation using the World Bank’s Logistics Performance Index.”