The Impact of Trade Openness on Logistics Performance in Africa

This study examines the impact of trade openness (TO) on logistics performance across 43 African countries from 2007 to 2020. Using the fixed effects estimation technique, the study evaluates how TO, technological innovation (INN), industrialization (IND), political stability (POLS), and economic growth (EG) influence logistics performance, measured by the Logistics Performance Index (LPI). The findings reveal that TO has a negative effect on logistics performance, while IND and POLS also negatively impact LPI. However, INN shows a positive but statistically insignificant relationship and EG has a significant negative effect. These findings highlight the complexities of logistics performance in Africa, emphasizing the need for policy reforms that address challenges in trade logistics, IND, and governance to enhance overall logistics efficiency and economic integration in the region. The study contributes to the literature on trade and logistics in developing economies.