The Impact of Logistics Performance on Trade Efficiency and Economic Growth: a Global Comparative Study

Abstract

This study examines the complex relationship between logistics performance and economic growth, focusing on regional disparities and their impact on international trade volumes. The primary objective is to assess how variations in logistics efficiency affect economic outcomes across regions, with a particular focus on the period from 2007 to 2023. Using data from the World Bank, including the Logistics Performance Index (LPI), GDP growth rates, and border compliance metrics (time and cost to import and export), the study employs statistical techniques such as multiple linear regression, correlation analysis, and panel data analysis. Jamovi software was used for comprehensive statistical analysis. The study covers regions such as Eastern and Southern Africa, Western and Central Africa, Central Europe and the Baltic States, East Asia and the Pacific, Europe and Central Asia, the European Union, Latin America and the Caribbean, the Middle East and North Africa, OECD members, and Sub-Saharan Africa. The results reveal significant regional disparities in logistics performance and economic growth. In particular, East Asia and the Pacific shows a robust correlation between high LPI scores and economic growth, while regions such as Eastern and Southern Africa and Western and Central Africa face significant logistics challenges that hinder economic development. The study makes several policy recommendations, including improving logistics infrastructure in low-performing regions, increasing customs efficiency, and developing region-specific strategies. In regions such as Europe and Central Asia, where logistics performance is high but economic growth is slower, complementary economic strategies such as promoting innovation and market diversification are recommended. The study contributes to the literature by providing a detailed regional analysis of logistics performance and its economic impact, providing actionable insights for policy makers, and identifying gaps in existing research.