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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. Monica Alina Mustra & Jean-François Arvis & 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.
    2. 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.
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    1. Pasindu Wannisinghe & Sanjula Jayakody & Sashini Rathnayake & Deshani Wijayasinghe & Ruwan Jayathilaka & Naduni Madhavika, 2023. "Determining the influence of LPI, GCI and IR on FDI: A study on the Asia and Pacific Region," PLOS ONE, Public Library of Science, vol. 18(2), pages 1-12, February.
    2. Metri F. Mdanat & Mohammad Al Hur & Omar M. Bwaliez & Ghazi A. Samawi & Raed Khasawneh, 2024. "Drivers of Port Competitiveness Among Low-, Upper-, and High-Income Countries," Sustainability, MDPI, vol. 16(24), pages 1-19, December.
    3. Thanh Cong Nguyen & Trung Hieu Le, 2024. "Financial crises and the national logistics performance: Evidence from emerging and developing countries," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(2), pages 1834-1855, April.
    4. Richard Bullock & Martha Lawrence & Joanna Moody, 2023. "Unlocking Green Logistics for Development," World Bank Publications - Reports 40529, The World Bank Group.
    5. 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.
    6. Weixin Wang & Qiqi Wu & Jiafu Su & Bing li, 2024. "The impact of international logistics performance on import and export trade: an empirical case of the “Belt and Road” initiative countries," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-10, December.
    7. Mukut Sikder & Chao Wang & Frederick Kwame Yeboah & Jacob Wood, 2024. "Driving factors of CO2 emission reduction in the logistics industry: an assessment of the RCEP and SAARC economies," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(1), pages 2557-2587, January.
    8. Manuel Manzanedo & Carlos Alonso de Armiño & Nuño Basurto & Roberto Alcalde & Belen Alonso, 2024. "Divergences between EU Members on the Sustainability of Road Freight Transport," Sustainability, MDPI, vol. 16(15), pages 1-17, July.
    9. Fariborz Aref, 2024. "Analyzing inequalities: a multifaceted perspective of OECD welfare regimes during the Great Recession and the Pandemic," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 71(2), pages 401-420, June.
    10. 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.

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