Open AccessGross domestic product and logistics performance index drive the world trade: A study based on all continents
Author(s) -
Ruwan Jayathilaka,
Chanuka Jayawardhana,
Nilupul Embogama,
Shalini Jayasooriya,
Navodika Karunarathna,
Thisara Gamage,
Nethmali Kuruppu
Publication year - 2022
Publication title -
plos one
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.99
H-Index - 332
ISSN - 1932-6203
DOI - 10.1371/journal.pone.0264474
Subject(s) - gross domestic product , index (typography) , economics , middle east , hausman test , revealed comparative advantage , human development index , product (mathematics) , panel data , international trade , geography , east asia , international economics , development economics , fixed effects model , comparative advantage , economic growth , human development (humanity) , china , econometrics , geometry , mathematics , archaeology , world wide web , computer science
The purpose of this study was to examine the impact of Gross Domestic Product (GDP) and Logistics Performance Index (LPI) on international trade of nations across each continent and worldwide. Secondary data collected on 142 countries—37 Asian, 41 European, 41 African, 3 Oceania, 14 Middle East, 11 North American and 9 South American–were analysed across the years 2007, 2010, 2012, 2014, 2016, and 2018. Panel regression technique was applied and the random effect (RE) model was chosen based on the results of the Hausman tests and Breusch–Pagan Lagrange Multiplier test. The findings revealed that the LPI has a positive relationship with net exports globally and specifically within the continents of Asia, Europe, and Oceania. Moreover, while the GDP appears to have a significant negative impact on net exports, specifically within Asia, in contrast, countries in Oceania and the Middle East present a positive relationship. Also on the African continent, GDP has a significant negative impact on the net exports. Findings provide a holistic picture of the impact of LPI & GDP on net exports, which will assist governments in the formulation and revision of its strategies and policies to expedite the growth of exports and in turn, the economy. This study was the first of its kind to explore the impact of GDP and LPI on international trade of nations across worldwide.