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Transport Infrastructure Quality and Logistics Performance in Exports

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  • Sénquiz-Díaz Cynthia

    (Universidad Ana G. Méndez, Business, Tourism and Entrepreneurship Division, PO Box 3030, Gurabo, Puerto Rico)

Abstract

The quality of transport infrastructure and the efficiency of logistics services enhance economic development. This study measures the effects of transport-freight common modals and logistics performance on the exports of goods in 29 developing economies based on micro fixed-effects panel data for the period 2012–2018. The endogenous model proved a positive relationship with countries’ outward orientation, highlighting the importance of transport infrastructure and logistics resources. The results revealed that the quality of roads and ports contribute significantly to higher exports in developing economies. However, the quality of airport infrastructure and logistics show a harmful effect. Notably, the logistics services level is a detrimental factor impacting the export of goods in developing economies. These results may adversely impact the potential contributions of other transport assets based on intermodal transport functionality and global market participation. Therefore, governments should prioritize formulating innovative policies and integration strategies with the private sector to improve the performance of logistics providers and fully utilize current transportation assets, particularly airports. These plans will facilitate higher exports, yield better development, and improve economic competitiveness while expanding export product diversification opportunities.

Suggested Citation

  • Sénquiz-Díaz Cynthia, 2021. "Transport Infrastructure Quality and Logistics Performance in Exports," Economics, Sciendo, vol. 9(1), pages 107-124, June.
    • Handle: RePEc:vrs:econom:v:9:y:2021:i:1:p:107-124:n:5
    DOI: 10.2478/eoik-2021-0008
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    References listed on IDEAS

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    More about this item

    Keywords

    Developing Economies; Logistics; Transportation Infrastructure Quality; Exports of Goods; Economic Development;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
    • F10 - International Economics - - Trade - - - General

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