The Impact of Logistics Performance on Export Market Penetration: an Econometric Study Using GMM

Given the pivotal role of the Association of Southeast Asian Nations (ASEAN) in global trade and the region’s increasing integration within international supply chains, this study investigates the impact of logistics performance on export market penetration among ASEAN countries. Using the Generalized Method of Moments (GMM) one-step estimator, the study analyzes dynamic panel data comprising annual observations on logistics performance indicators, export market penetration metrics, and macroeconomic variables such as inflation rates and intertrade volumes from 2000 to 2022. The results reveal that logistics infrastructure, including international sea container throughput and international sea cargo throughput, significantly enhances the ability of ASEAN countries to access export markets. Findings in improving the liner shipping connectivity index can increase export capacity by up to 2.82%, underscoring the importance of investing in robust maritime infrastructure. Additionally, the study demonstrates that inflation negatively affects export market penetration, emphasizing the necessity for effective inflation control to enhance export competitiveness. The study concludes with recommendations for strengthening logistics infrastructure and fostering regional trade integration in ASEAN to boost export performance in global markets. These insights offer valuable guidance for policymakers and industry stakeholders in formulating strategies to improve trade logistics and elevate export outcomes across the region.