Volume 4 , Issue 1 , PP: 39-45, 2026 | Cite this article as | XML | Html | PDF | Full Length Article
Pardaev Khurshidbek 1 * , Muhammad Eid Balbaa 2
Doi: https://doi.org/10.54216/JIER.040105
How much does logistics efficiency actually matter for a country’s trade performance in today’s volatile global economy? This study explores this question by analyzing a comprehensive dataset of 153 countries for the year 2023. Using a robust OLS regression, the research examines the direct relationship between the Logistics Performance Index (lpi) and national trade-to-GDP ratios, while also accounting for economic development (gdp_pc) and macroeconomic stability (inflation). The empirical results offer clear evidence that logistics is a primary driver of trade success. The model reveals that a better logistics environment has a statistically significant positive impact on trade integration (coefficient = 0.2798, p < 0.05). This suggests that reducing "trade friction" through smarter customs and better infrastructure is essential for global competitiveness. Furthermore, the analysis shows that while higher income levels support trade, price instability remains a major obstacle, with inflation showing a strong negative effect (-0.4174, p < 0.001). These findings lead to a straightforward conclusion: to thrive in the modern market, nations must look beyond physical borders and invest heavily in the speed, reliability, and digital integration of their supply chains. This research provides a practical roadmap for policymakers aiming to enhance their country’s international trade footprint.
Logistics performance index (LPI) , Trade-to-GDP ratio , Infrastructure efficiency , Macroeconomic stability , Global supply chains
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