This paper aims to investigate the effects of logistic performance on international trade flows. In order to analyse empirically the impact of logistics on trade, two kinds of logistic indicators are considered: hard-ware and software indicators. A gravity model augmented with hard-ware and software variables is estimated. Moreover, geographical and social variables are also included as determinants of trade flows. Hard-ware indicators represent overland and maritime infrastructure endow-ments, and also how well countries are connected in the world economy, and software indicators reflect the logistics management performance in different countries. The results of this research indicate that investing in logistics leads to improve and maintain the level of competitiveness.
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Article provided by Ilades-Georgetown University, Economics Department in its journal Revista de Analisis Economico.
Find related papers by JEL classification: F10 - International Economics - - Trade - - - General
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