Impact of logistics performance and trade facilitation on China-ASEAN trade flows

The Association of Southeast Asian Nations (ASEAN) has grown to be China's biggest trading partner since 2019. Trade flows between China and ASEAN are becoming increasingly significant in fostering economic expansion in both China and ASEAN nations. This research aims to analyze the impact of logistics performance and trade facilitation improvements on bilateral trade flows between China and ASEAN countries. We use a panel data set of six ASEAN countries from 2009 to 2019. We use feasible generalized least squares estimation to do the data regression based on the heteroskedasticity and Wooldridge autocorrelation test results to make sure the results are correct. The empirical results indicate that the logistics performance improvement of ASEAN countries significantly promotes China-ASEAN bilateral trade flows. Trade facilitation measures implemented in ASEAN countries also play a crucial role in boosting the bilateral trade flows between China and ASEAN. Trade facilitation shows a higher impact on China’s exports to ASEAN than on China’s imports from ASEAN. The findings of this research imply that policymakers in ASEAN countries still need to prioritize improving their logistics performance and trade facilitation to enhance their bilateral trade flows. This research also provides valuable insights for other developing countries to promote their trade flows by improving their logistics performance and trade facilitation.