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Does Cross-Border Logistics Performance Contribute to Export Competitiveness? Evidence from China Based on the Iceberg Transport Cost Model

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  • Ting Ding

    (School of Finance and Economics, Nanjing Audit University Jinshen College, Nanjing 210046, China
    School of English for International Business, Guangdong University of Foreign Studies, Guangzhou 510420, China
    School of Business, Massey University, Auckland Campus, Auckland 0745, New Zealand)

  • Wenzhong Zhu

    (School of Business, Guangdong University of Foreign Studies, Guangzhou 510420, China)

  • Ming Zhao

    (School of Information Engineering, Nanjing University of Finance and Economics, Nanjing 210046, China)

Abstract

This paper investigates the economic relationship between logistics performance and export competitiveness based on the iceberg transport cost model and conducts further empirical analysis according to China’s LPI. It finds that the higher the efficiency of logistics and transport, the lower the transportation costs coefficient per unit distance; when logistics and transportation costs decrease, foreign demand for domestic goods increases, as does the export value expressed in domestic prices. Additionally, Spearman’s rank correlation method is used to analyze the relationship between logistics performance index and export level, indicating that logistics performance index has a positive rank correlation with the export level at a significant level of 1%. Moreover, a case study on China’ LPI supports the conclusion derived from the theoretical analysis, and conducive countermeasures are put forward. This research confirms the positive correlation between logistics performance and export competitiveness and proposes specific solutions to enhancing the logistics capabilities of other developing countries.

Suggested Citation

  • Ting Ding & Wenzhong Zhu & Ming Zhao, 2022. "Does Cross-Border Logistics Performance Contribute to Export Competitiveness? Evidence from China Based on the Iceberg Transport Cost Model," Sustainability, MDPI, vol. 15(1), pages 1-17, December.
    • Handle: RePEc:gam:jsusta:v:15:y:2022:i:1:p:490-:d:1017489
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