TRANSPORT INFRASTRUCTURE QUALITY AND LOGISTICS PERFORMANCE IN EXPORTS

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.