The Relationship Between Logistics Performance Index and International Trade: An Empirical Analysis

In today's highly competitive global business environment, effective management of logistics performance is crucial for successful trade. Numerous studies have examined the significant influence of Logistics Performance Index (LPI) on international trade, particularly on national trade. This article aims to empirically investigate the impact of LPI on international trade using variables such as Gross Domestic Product (GDP), distance between importing and exporting countries, infrastructure, trade flow, and LPI score for the year 2018. We used an improved gravity model of regression analysis to estimate this relationship among 150 nations. Our findings suggest that trade will increase with trade flow since all variables considered are significant and demonstrate the intended indications in line with our hypothesis.