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The Impact of Logistics Efficiency and Free Trade Agreements on Global Trade : Focusing on Total Trade Value
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Type
Academic journal
Author
Kyong Han Lee (Korea Maritime Institute) Sang-Yoon Lee (Inha University)
Journal
Jungseok Research Institute of International Logistics and Trade Journal of International Logistics and Trade Vol.14 No.3 KCI Accredited Journals
Published
2016.12
Pages
211 - 218 (8page)

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The Impact of Logistics Efficiency and Free Trade Agreements on Global Trade : Focusing on Total Trade Value
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Abstract· Keywords

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The purpose of this study is to empirically analyze the impact of logistics efficiency on trade volume growth, and to examine the effects of lower tariffs resulting from free trade agreements. In order to measure the impact of logistics efficiency on trade volume growth, the export and import trade volume among 53 countries was introduced as the dependent variable. Macroeconomic indicators including annual average tariff rate, logistics efficiency indicators for port, air, railroad, road and container vessel connectivity, as well as dummy variables such as whether a free trade agreement was signed, were introduced as the explanatory variables. Bilateral panel data between trading nations was used to estimate the gravity panel model, and analysis followed the categorization: 1) separate inputs of the five logistics efficiency variables and 2) one aggregated input of the five variables as a single indicator. The analysis found that logistics efficiency had a statistically significant impact on bilateral trade volume growth, while the impact of lowering tariff rates on increasing trade was insignificant. In addition, logistics efficiency was found to have a greater impact on increasing trade volume than free trade agreements. These results imply that trade can be promoted more effectively by establishing and efficiently operating logistics-related infrastructure rather than traditional methods of reducing trade barriers such as lowering tariffs and signing free trade agreements.
#Trade facilitation #Logistics efficiency #Free trade agreement #Bilateral trade #Multilateral trade #Trade value

Contents

ABSTRACT
1. Introduction
2. Literature review
3. Research model and data collection
4. Empirical analysis process and model specification
5. Empirical analysis results
6. Conclusion
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UCI(KEPA) : I410-ECN-0101-2017-324-001998681