Modeling the impact of logistic performance, economic features, and demographic factors of countries on the seaborne trade

Mahpour Alireza; Farzin Iman; Baghestani Amirhossein; Ashouri Sina; Javadi Zahra; Asgari Latifeh

doi:10.1016/j.ajsl.2023.02.003

Modeling the impact of logistic performance, economic features, and demographic factors of countries on the seaborne trade

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Type: Academic journal

Author: Mahpour Alireza (Faculty of Civil Water and Environmental Engineering Shahid Beheshti University Iran) Farzin Iman (Faculty of Civil and Environmental Engineering Tarbiat Modares University Iran) Baghestani Amirhossein (Faculty of Civil Water and Environmental Engineering Shahid Beheshti University Iran)

Journal: The Korean Assoiation of Shipping and Logistics The Asian Journal of Shipping and Logistics The Asian Journal of Shipping and Logistics Vol.39 No.2 KCI Accredited Journals

Published: 2023.6

Pages: 60 - 66 (7page)

DOI: 10.1016/j.ajsl.2023.02.003

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Modeling the impact of logistic performance, economic features, and demographic factors of countries on the seaborne trade

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The shipping industry continues to have strong growth prospects due to increased efficiency and economic liberalization. Through seaborne trade, port infrastructure and logistics impact economic growth in de veloping countries. This makes studying the factors affecting seaborne trade for such countries particularly important. The current paper aims at analyzing the impact of logistics, economic, and demographic vari ables on seaborne commodity trade between Qatar, Oman, Turkey, Pakistan, and Iran. Employing a gravity model, results show that a 1% improvement in Logistics Performance Index (LPI) consignments in the importing country can result in a 0.8% increase in total trade flows. Based on results, a 1% increase in the tariff rate reduces the value of trade by 0.4%. Furthermore, a 0.5% increase in trade is caused by the increase in population of the destination country. A sensitivity analysis also shows that logistics variables are more significant than economic and demographic variables. It can be concluded that trade policymakers in de veloping countries can get better results by improving logistics performance and investing on logistics infrastructure leads to more trade.

#Seaborne trade #Developing countries #Gravity model #LPI #Tariff #Middle-east

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Mahpour Alireza

Affiliation Faculty of Civil Water and Environmental Engineering Shahid Beheshti University Iran