The impact of logistics cost in the external trade of ASEAN countries

• Main Authors: Choy, Wing Fai, Ibarra, Mia Angelica B., Lin, Ling Ling, Marzan, Florianne D.
• Format: text
• Language: English
• Published: Animo Repository 2008
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/14740
• Institution: De La Salle University

An earlier advancement on logistics development is a key essential in sustaining Southeast Asia’s competitive advantage in trade. The high logistics costs for Southeast Asian countries result from poor transport infrastructure, underdeveloped transport and logistics services, and inefficient bureaucratic trade procedures. This paper presents the role of logistics cost at a paper unit basis in trade volume and trade value in accordance to the competitiveness of the Philippines to other ASEAN countries in the years 1996-2004. A study of the logistics cost on trade is presented as a determinant of market competitiveness in eight ASEAN countries --- Cambodia, Indonesia, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. As an essential factor substantiated through regression analysis of this study, logistics cost is inversely proportional to trade value, however, may be relative to the prices of commodities. The study also makes use of other parameters that affect trade such as GDP per capita, Government expenditure on infrastructure, Income per capita, Population, Inflation rate, and Foreign Direct Investments. These parameters may somehow exemplify the economic environment of Southeast Asian countries that also influence trade in line with logistics cost.