Will Cross-Border Logistics Performance Contribute to Export Competitiveness

Abstract

This paper investigates the economic relationship between logistics performance (LP) and export competitiveness (EC) based on the iceberg transport costs theory and conducts further empirical analysis according to China's logistics performance index (LPI). It finds that the higher the efficiency of logistics and transport, the lower the transportation costs coefficient per unit distance; when logistics and transportation costs decrease, domestic goods demand of foreigners increases, and so does the export value expressed in domestic prices. Additionally, Spearman's rank correlation method is used to analyze the relationship between LPI and export level (EXP), indicating that LPI has a positive rank correlation with the EXP at a significant level of 1%. This research confirms the positive correlation between LP and EC and proposes specific solutions to enhancing the logistics capability in other developing countries.