The Impact of International Logistics Performance on ASEAN Trade

Authors

  • Prawpan Oruangke Faculty of International Maritime Studies, Kasetsart University, Thailand

Keywords:

ASEAN, logistics performance, trade, gravity model

Abstract

The objective of this study is to investigate the impact of international logistics performance on ASEAN trade. The gravity model is applied with an augmented Logistics Performance Index (LPI) and its six logistical components, namely customs, infrastructure, logistics competency, international shipments, tracking and tracing, and timeliness. The obtained results reveal that LPI and its components are positive and highly statistically significant to ASEAN trade, mostly exports. Improvements to logistical components have led to significant growth in trade flows, implying that efficient logistics performance contributes positively to trade. Moreover, in the area of policy regulation, the greatest increase in ASEAN trade has been shown to come primarily from improvement in logistics competency followed by customs and infrastructure. For logistics performance outcomes in terms of time, cost, and reliability, improving timeliness is found to have the greatest influence on boosting trade, followed by tracking and tracing, and international shipment. These findings can help to stimulate the governments and private sectors of ASEAN member states to improve their logistics performance and boost trade.

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Published

2021-06-04

Issue

Vol. 25 No. 1 (2021): Vol.25 No.1 (2021) : January - June

Section

Articles

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All opinions and contents in the CMJE are the responsibility of the author(s). Chiang Mai University Journal of Economics reserves the copyright for all published materials.  Papers may not be reproduced in any form without the written permission from Chiang Mai University Journal of Economics.

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