Does Cross-Border Logistics Performance Contribute to Export Competitiveness? Evidence from China Based on the Iceberg Transport Cost Model

Abstract

This paper investigates the economic relationship between logistics performance and export competitiveness based on the iceberg transport cost model and conducts further empirical analysis according to China’s 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, foreign demand for domestic goods increases, as does the export value expressed in domestic prices. Additionally, Spearman’s rank correlation method is used to analyze the relationship between logistics performance index and export level, indicating that logistics performance index has a positive rank correlation with the export level at a significant level of 1%. Moreover, a case study on China’ LPI supports the conclusion derived from the theoretical analysis, and conducive countermeasures are put forward. This research confirms the positive correlation between logistics performance and export competitiveness and proposes specific solutions to enhancing the logistics capabilities of other developing countries.