Assessing the Effects of Logistics Performance on Energy Trade

Aleksandra Katarzyna Górecka, Helga Pavlić Skender and Petra Adelajda Zaninović
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Aleksandra Katarzyna Górecka: Department of Logistics, Institute of Economic and Finances, Warsaw University of Life Sciences—SGGW, 02-787 Warsaw, Poland
Helga Pavlić Skender: Faculty of Economics and Business, University of Rijeka, 51000 Rijeka, Croatia
Petra Adelajda Zaninović: Faculty of Economics and Business, University of Rijeka, 51000 Rijeka, Croatia

Energies, 2021, vol. 15, issue 1, 1-18

Abstract: Logistics has become one of the most important economic sectors. It significantly affects the transport infrastructure and many other sectors that are crucial for the country’s development. It is the factor that also influences trade efficiency. However, the question arises if logistics performance is significant for the trade of critical goods which are energy raw products. The aim of the paper is primarily to investigate the EU energy trade flows in general and to estimate the effect of logistics performance on the international trade of energy raw products. The energy raw products are grouped into solid, liquid, and gaseous products, and separate estimates are made for their export and import. The analysis also differentiates between the trade flows, that is export and import within the EU and trade flows between EU member states and third countries. The empirical model is based on the theory of gravity model extended to include the six subcomponents of the Logistics Performance Index (LPI). The results present that: (1) the standard gravity model variables, such as GDPs of reporter and partner countries and contiguity, are successful in explaining the trade flows of solid and liquid raw energy but in case of gas products, are insignificant; (2) the results indicate that all logistics’ performance subcomponents are highly significant and show positive effects on the export of liquid energy products, while for the solid and gas products, it seems to be insignificant when the energy commodities are more complex and costly to transport and store, and therefore, contiguity, i.e., when countries share a common border, positively affects energy trade; (3) the EU imports most liquid energy products, but is generally very dependent on energy imports. EU policymakers should strive to either make more use of domestic resources or switch more to renewable energy sources.

Keywords: logistics performance; energy trade; gravity model; GDP; export; import (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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