LOGISTICS PERFORMANCE AND EXPORT COMPETITIVENESS: EUROPEAN EXPERIENCE

Abstract

This article aims to analyse the importance of logistics performance in European Union (EU) exports over a sample period in order to detect possible advances on behalf of Member States. We will estimate several gravity equations using the Logistics Performance Index (LPI) and its components as characteristic proxy variables of trade facilitation. In order to avoid the possible heterogeneity caused by sample bias, we will employ the two-stage model proposed by Heckman. The estimations of the gravity models using the two-stage Heckman model for 26 EU countries lead to the conclusion that logistics were more important for exporting nations than importing nations in both 2005 and 2010, reinforcing the interest in the exporter side of the paper. In reference to the components of the LPI, Competence and Tracking have acquired greater importance in recent years, in keeping with the weak domestic demand in European countries and their search for new international markets.