The role of logistics performance index on trade openness in Europe Online publication date: Tue, 04-Apr-2023
by Mahmoud Barakat; Tarek Madkour; Abeir M. Moussa
International Journal of Economics and Business Research (IJEBR), Vol. 25, No. 3, 2023
Abstract: Logistics performance index is essential for local and regional economic development. Emerging research investigated the impact of logistics services on international trade at both company and country levels. However, there is a lack of studies that focus on the relationship between logistics and trade openness. This paper seeks to shed light on the role of logistics performance index with its six dimensions on trade openness in European countries. For this purpose, panel data are used to determine the effect of logistics performance index in these countries' trade openness, taking as control variables the macroeconomic indicators. The results show that logistics performance index is significantly affecting trade openness in the European continent. This means that better logistics performance can be considered one of the important reasons for increasing trade openness in all European countries and reducing trade costs.
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