The impacts of port infrastructure and logistics performance on economic growth

Ziaul Haque Munim¹, Hans-Joachim Schramm^2,3

(1) School of Business and Law, University of Agder, Norway; (2) Department of Global Business and Trade, Institute for Transport and Logistics Management, WU Vienna University of Economics and Business, Austria: (3) Department of Operations Management, Copenhagen Business School, Denmark

Abstract

Considering 91 countries with seaports, this study conducted an empirical inquiry into the broader economic contribution of seaborne trade, from a port infrastructure quality and logistics performance perspective. Investment in quality improvement of port infrastructure and its contribution to economy are often questioned by politicians, investors and general public. A structural equation model (SEM) is used to provide empirical evidence of significant economic impacts of port infrastructure quality and logistics performance. Furthermore, analysis of a multi-group SEM is performed by dividing countries into developed and developing economy groups. The results reveal that it is vital for developing countries to continuously improve the quality of port infrastructure as it contributes to better logistics performance, leading to higher seaborne trade, yielding higher economic growth. However, this association weakens as the developing countries become richer.

Keywords

International Trade; Neoclassical Growth Theory; Structural Equation Modelling; Economic Growth

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Please cite as:

Munim, Z. H., Schramm, H-J. (2018). The impacts of port infrastructure and logistics performance on economic growth: the mediating role of seaborne trade.  Journal of Shipping and Trade, 3(1), pp 1-19. doi.org/10.1186/s41072-018-0027-0