Logistics and international trade development relationship: evidence of European Union member states

Abstract

International trade (IT) is recognised as one of the driving forces for business and the growth of countries’ economic. The amount of IT flows is contributed by the “logistics revolution”. According to the conceptual approach, the development of transportation modes, logistics infrastructure may facilitate international trade. However, it remains unclear whether logistic performance changes contribute to IT flows since the number of researches that examine the effect of logistic performance on IT is limited. So, this paper aims to determine whether the flows of IT are contingent on logistics performance. The research relies on panel data of 28 European Union (EU) Member States (MS) over 2007–2016. The results of our investigation confirmed that the changes of logistics performance positively related to IT flow of EU MS, but this impact differs across countries.