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Logistics performance, exports, and growth: Evidence from Asian economies

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  • Tang, Chor Foon
  • Abosedra, Salah

Abstract

The goal of this paper is to determine whether the validity of the export-led growth (ELG) hypothesis is contingent on logistics performance in Asia. The study relies on balanced panel data of 23 Asian countries over the period 2010 to 2016. Our findings show that the export-led growth hypothesis is valid in all the countries examined. Furthermore, and more significantly, the logistics sector performance is found to be an important enabler to trade. Therefore, economic growth in Asia is found to be conditional on the logistics performance level in the countries examined. Hence, from a policy perspective, investment in logistics infrastructure should be considered as an area of investment with the greatest possible benefits that has supreme returns for future growth in our selected countries. Finally, our results show that logistics heterogeneity among countries examined may be an explanation for the previously reported mixed results of earlier studies examining the validity of the ELG hypothesis in Asian countries.

Suggested Citation

  • Tang, Chor Foon & Abosedra, Salah, 2019. "Logistics performance, exports, and growth: Evidence from Asian economies," Research in Transportation Economics, Elsevier, vol. 78(C).
  • Handle: RePEc:eee:retrec:v:78:y:2019:i:c:s0739885919302550
    DOI: 10.1016/j.retrec.2019.100743
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    More about this item

    Keywords

    Economic growth; Export-led growth; Institutions; Logistics performance;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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