The Impact of Logistics Efficiency on Korea’s Trade Performance: Focusing on the Logistics Performance Index of APEC Countries

This study empirically examines the impact of logistics efficiency in APEC member countries on Korea’s trade volume. Using World Bank data from 2010 to 2022, a gravity model was constructed based on the Logistics Performance Index (LPI), including six sub-indicators(customs efficiency, infrastructure quality, ease of shipment, logistics service quality, tracking & tracing, and timeliness)and six explanatory variables: LPI, population, trade openness, geographic distance, foreign direct investment (FDI), and the presence of a free trade agreement (FTA). Panel data from 19 APEC countries were analyzed using STATA 17.0. The results indicate that LPI has the most significant positive effect on Korea’s trade, with a 1% increase in LPI associated with a 0.864% rise in trade volume. Other variables such as population (0.514%), FDI (0.315%), and trade openness (0.274%) also positively influence trade, while geographical distance shows a negative effect. Further analysis using the six LPI sub-indicators reveals that logistics service quality (0.742%) had the greatest impact, followed by ease of shipment (0.736%), tracking & tracing (0.721%), timeliness (0.661%), infrastructure quality (0.622%), and customs efficiency (0.612%). These findings highlight that the economic effects of logistics performance vary by subcomponent rather than uniformly influencing trade. By disaggregating the LPI and focusing on the Korea-APEC trade relationship, this study contributes to existing literature and offers policy implications for setting strategic priorities and allocating resources in logistics-related trade policy.