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Gross domestic product and logistics performance index drive the world trade: A study based on all continents

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Listed:
  • Ruwan Jayathilaka
  • Chanuka Jayawardhana
  • Nilupul Embogama
  • Shalini Jayasooriya
  • Navodika Karunarathna
  • Thisara Gamage
  • Nethmali Kuruppu

Abstract

The purpose of this study was to examine the impact of Gross Domestic Product (GDP) and Logistics Performance Index (LPI) on international trade of nations across each continent and worldwide. Secondary data collected on 142 countries—37 Asian, 41 European, 41 African, 3 Oceania, 14 Middle East, 11 North American and 9 South American–were analysed across the years 2007, 2010, 2012, 2014, 2016, and 2018. Panel regression technique was applied and the random effect (RE) model was chosen based on the results of the Hausman tests and Breusch–Pagan Lagrange Multiplier test. The findings revealed that the LPI has a positive relationship with net exports globally and specifically within the continents of Asia, Europe, and Oceania. Moreover, while the GDP appears to have a significant negative impact on net exports, specifically within Asia, in contrast, countries in Oceania and the Middle East present a positive relationship. Also on the African continent, GDP has a significant negative impact on the net exports. Findings provide a holistic picture of the impact of LPI & GDP on net exports, which will assist governments in the formulation and revision of its strategies and policies to expedite the growth of exports and in turn, the economy. This study was the first of its kind to explore the impact of GDP and LPI on international trade of nations across worldwide.

Suggested Citation

  • Ruwan Jayathilaka & Chanuka Jayawardhana & Nilupul Embogama & Shalini Jayasooriya & Navodika Karunarathna & Thisara Gamage & Nethmali Kuruppu, 2022. "Gross domestic product and logistics performance index drive the world trade: A study based on all continents," PLOS ONE, Public Library of Science, vol. 17(3), pages 1-16, March.
    • Handle: RePEc:plo:pone00:0264474
    DOI: 10.1371/journal.pone.0264474
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    References listed on IDEAS

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    1. Jesus Felipe & Utsav Kumar, 2012. "The Role of Trade Facilitation in Central Asia," Eastern European Economics, Taylor & Francis Journals, vol. 50(4), pages 5-20, July.
    2. Jean-François Arvis & Monica Alina Mustra & Lauri Ojala & Ben Shepherd & Daniel Saslavsky, 2012. "Connecting to Compete 2012 : Trade Logistics in the Global Economy," World Bank Publications - Reports 12689, The World Bank Group.
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    1. Kaiwen Zhang, 2022. "The Effect of Logistics Performance Index of RCEP Countries on China's Export Trade," Review of Economic Assessment, Anser Press, vol. 1(1), pages 52-62, December.
    2. Khaled El Sakty & Mohamed Abdelraouf & Samira Allam, 2023. "How Logistics Performance Reshapes The Movement Of Stocks In The Context Of Climate Change?," Business Logistics in Modern Management, Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia, vol. 23, pages 43-62.

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