Logistics’ bottleneck effect and international trade: Evidence from Vietnam’s imports

Huy Le Vu; Jihyun Eum

doi:10.24294/jipd.v8i6.4989

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Logistics’ bottleneck effect and international trade: Evidence from Vietnam’s imports

Huy Le Vu

Jihyun Eum

Journal of Infrastructure Policy and Development 2024, 8(6), 4989; https://doi.org/10.24294/jipd.v8i6.4989

Submitted：04 Mar 2024

Accepted：22 Mar 2024

Published：13 Jun 2024

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Abstract

This study examines the bottleneck effect of logistics performance on Vietnam’s imports, utilizing bilateral trade data from 2007 to 2022. We evaluate the impact of logistics performance on imports of Vietnam using the augmented gravity model and a random effects estimator. Our findings reveal that the minimum logistics performance between Vietnam and its trading partners has a significantly positive impact on the Vietnamese imports. The magnitude of its bottleneck effects is much larger than the influence of Vietnam’s individual logistics performance or deviations in performance with its trading partners. Recognizing the impact of logistics bottlenecks on international trade enables policymakers to develop more effective and efficient logistics-related policies for enhancing bilateral trade with trading partners.

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References

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