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Determinants of logistics' performance: a new approach towards analysis of economic corridors and institutional quality impact

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  • Ona Gražina RakauskienÄ—

    (Mykolas Romeris University, Lithuania)

  • Monika PetkeviÄ iÅ«tÄ—-StruÄ ko

    (Mykolas Romeris University, Lithuania)

Abstract

Recently, the relationship between economic corridors and logistics performance has been intensively investigated. However, only few studies analyze other factors through which the economic corridors affect logistics quality. Therefore, we aim to estimate the impact of economic corridors on logistics performance, in a way to account for institutional effect, by constructing multiplicative interaction model. Our proposed model was tested using the difference-in-differences estimator and panel data of 36 European countries along The Belt and Road Economic Corridors between 2007 and 2018. Considering robustness tests and appropriate estimation techniques our analysis showed that economic corridors affect countries logistics performance via institutional quality. However, several limitations need to be acknowledged. The first one is related to the availability of the data as The Belt and Road Initiative (BRI) was introduced only recently, limiting the length of the analyzed period. Secondly, no official or generally accepted definition of the BRI exists, thus it is very difficult to identify its geographical scope. Therefore, applying the same methodology for data, several years after the announcement of BRI, future research could include more countries and additional time periods to explore the matter in more detail. Despite the fact, our approach assumes that the initiatives of economic corridors should be accompanied by stronger institutions and good governance to have higher levels of countries logistics performance. Moreover, this study confirms that economic corridors is very complex economic phenomenon and further studies should consider the role of moderators of this nexus.

Suggested Citation

  • Ona Gražina RakauskienÄ— & Monika PetkeviÄ iÅ«tÄ—-StruÄ ko, 2022. "Determinants of logistics' performance: a new approach towards analysis of economic corridors and institutional quality impact," Insights into Regional Development, VsI Entrepreneurship and Sustainability Center, vol. 4(3), pages 11-33, September.
    • Handle: RePEc:ssi:jouird:v:4:y:2022:i:3:p:11-33
    DOI: 10.9770/IRD.2022.4.3(1)
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    References listed on IDEAS

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    1. Brambor, Thomas & Clark, William Roberts & Golder, Matt, 2006. "Understanding Interaction Models: Improving Empirical Analyses," Political Analysis, Cambridge University Press, vol. 14(1), pages 63-82, January.
    2. Abuduwali Aibai & Xianjing Huang & Yu Luo & Yuchao Peng, 2019. "Foreign Direct Investment, Institutional Quality, and Financial Development along the Belt and Road: An Empirical Investigation," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 55(14), pages 3275-3294, November.
    3. Anatolii Kulish & Oleksandr Yunin & Olha Us & Iryna Shapovalova & Ivan Yaromii, 2021. "Smuggling as a threat to economic security of the state," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(3), pages 384-399, March.
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    More about this item

    Keywords

    economic corridors; logistics performance; belt and road initiative; institutional quality; moderators; interaction term;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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