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

Chor Foon Tang and Salah Abosedra

Research in Transportation Economics, 2019, vol. 78, issue C

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.

Keywords: Economic growth; Export-led growth; Institutions; Logistics performance (search for similar items in EconPapers)
JEL-codes: C32 O18 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

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DOI: 10.1016/j.retrec.2019.100743

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