Influential Article Review - Can Economic Growth be Driven by Port and Logistics Performance?

Abstract

This paper examines economics. We present insights from a highly influential paper. Here are the highlights from this paper: 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 the economy are often questioned by politicians, investors and the 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. For our overseas readers, we then present the insights from this paper in Spanish, French, Portuguese, and German.