Logistics performance as a mediator of the relationship between trade facilitation and international trade: A mediation analysis

Abstract

The growing volume of international trade, the disappearance of borders between countries and the expansion of the concept of globalisation have recently made the logistics sector more important in world trade. Today, logistics has emerged as one of the largest and most dynamic activities in the world. Unfortunately, the logistics gap between rich and poor countries persists. According to the Logistics Performance Index (LPI), high-income countries dominate the logistics ranking, while the worst performers are underdeveloped economies that are often landlocked countries, small island states or post-conflict countries. However, logistics performance is not merely determined by the level of per capita income, as many countries perform better than others in different income groups. When talking about logistics performance, Gani (2017) refers to the processes necessary for the safe and secure transport of goods from one country to another. Underdeveloped and developing countries, therefore, need practical trade logistics measures to facilitate trade in order to change import and export processes and optimise the supply chain without having to commit to significant additional human and financial resources.