International Congress on Eurasian Economies
26-28 June 2024 – Bishkek, KYRGYZSTAN
Paper properties
Paper ID : 2909
Status : Paper accepted
Language : English
Topic : International Trade and Globalization
Presenter: Research assistant Necip Bulut
Session : 2A Macroeconomics
The Impact of Logistic Performance Index and Ease of Doing Business on Trade Volume in Eurasian Countries: A Gravity Model
The Impact of Logistic Performance Index and Ease of Doing Business on Trade Volume in Eurasian Countries: A Gravity Model
- Asst. Prof. Dr. Yasemin Ülker (Bahçesehir University, Türkiye)
- Research assistant Elif Nur Eken (Istanbul Esenyurt University, Türkiye)
- Research assistant Necip Bulut (Bahçeşehir University, Türkiye)
Abstract
One key indicator of a nation's effectiveness in trade-related logistics operations is the logistics performance index (LPI), which has grown significantly. On the other hand, information about how simple it is to conduct business in a nation is provided by the Doing Business (DB) index. In light of the growing trends of globalization and regional integration, it is critical to comprehend how logistics performance and doing business impact trade volume. To shed light on the theoretical and practical implications of improving logistical efficiency for regional development, this study examines impact of the logistics performance and doing business on trade volume in Eurasian countries. By utilizing panel data approach, we estimate the baseline gravity model and the special gravity model augmented with LPI and DB variables over the sample period from 2000 to 2023 in order to evaluate the importance of logistic services and the ease of doing business on trade volume. Our empirical research conducted over the previous twenty three years demonstrates that trade volume is strongly positively impacted by logistics performance and doing business. One of the most crucial contributors to economic growth is trade volume, higher ratings on the Logistics Performance Index are typically associated with stronger rates of economic growth. Therefore, to promote economic development, officials in the Eurasian region are urged to give priority to investments in logistical infrastructure and optimize trade-related procedures. Further enhancing regional integration and promoting economic growth across Eurasian countries can be achieved through enacting policies targeted at minimizing logistical obstacles and strengthening cross-border collaboration.
JEL codes: O47
