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The Impact of Logistics Performance on Argentina, Brazil, and the US Soybean Exports from 2012 to 2018: A Gravity Model Approach

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  • João Gilberto Mendes dos Reis

    (Postgraduate Program in Production Engineering and Postgraduate Program in Business Administration, Universidade Paulista—UNIP, Dr. Bacelar street 1212, São Paulo 04026-002, Brazil
    Postgraduate Program in Agribusiness, Universidade Federal da Grande Dourados, Dourados 79804-970, Brazil)

  • Pedro Sanches Amorim

    (Department of Industrial Engineering and Management, Faculdade de Engenharia, Universidade do Porto, 4200-465 Porto, Portugal)

  • José António Sarsfield Pereira Cabral

    (Department of Industrial Engineering and Management, Faculdade de Engenharia, Universidade do Porto, 4200-465 Porto, Portugal)

  • Rodrigo Carlo Toloi

    (Instituto Federal de Mato Grosso, Rondonópolis 78721-520, Brazil)

Abstract

Soybean is one of the main sources of protein directly and indirectly in human nutrition, and it is highly dependent on logistics to connect country growers and international markets. Although recent studies deal with the impact of logistics on international trade, this impact in agricultural commodities is still an open research question. Moreover, these studies usually do not consider the influence of all components of the logistics on trade. This paper, therefore, aims at identifying the role of logistics performance in soybean exports among Argentina, Brazil, the US and their trading partners from 2012 to 2018. Using an extended gravity model, we examine whether the indicators of the World Bank Logistics Performance Index (LPI), adopted as a proxy of logistics efficiency, are an important determinant of bilateral soybean trade facilitation. The results lead to the conclusion that it is necessary to analyze the LPI throughout its indicators because they may affect trade differently. The novelty of this article is to provide an analysis of the impact of different logistics aspects on commodity trade, more specifically in the soybean case. Finally, regarding the model results, logistics infrastructure has a positive and significant correlation with soybean trade as supposed in most of the literature.

Suggested Citation

  • João Gilberto Mendes dos Reis & Pedro Sanches Amorim & José António Sarsfield Pereira Cabral & Rodrigo Carlo Toloi, 2020. "The Impact of Logistics Performance on Argentina, Brazil, and the US Soybean Exports from 2012 to 2018: A Gravity Model Approach," Agriculture, MDPI, vol. 10(8), pages 1-21, August.
    • Handle: RePEc:gam:jagris:v:10:y:2020:i:8:p:338-:d:395614
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    2. Marley Nunes Vituri Toloi & Silvia Helena Bonilla & Rodrigo Carlo Toloi & Helton Raimundo Oliveira Silva & Irenilza de Alencar Nääs, 2021. "Development Indicators and Soybean Production in Brazil," Agriculture, MDPI, vol. 11(11), pages 1-15, November.
    3. Emerson Rodolfo Abraham & João Gilberto Mendes dos Reis & Oduvaldo Vendrametto & Pedro Luiz de Oliveira Costa Neto & Rodrigo Carlo Toloi & Aguinaldo Eduardo de Souza & Marcos de Oliveira Morais, 2020. "Time Series Prediction with Artificial Neural Networks: An Analysis Using Brazilian Soybean Production," Agriculture, MDPI, vol. 10(10), pages 1-18, October.

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