Enhancing International Trade Specialization through Free Trade Agreements: The Role of Logistics Integration in Global Value Chains

This study evaluates how Free Trade Agreements (FTAs) contribute to international trade specialization by enhancing logistics within global value chain (GVC) frameworks. As globalization intensifies and supply networks become increasingly complex, understanding the FTA-logistics nexus is critical for effective trade policy formulation. A systematic literature review method was employed, analyzing eight peer-reviewed studies published between 2010 and 2025. For doing the review, a table has been prepared listing the sources and findings for better flow of information. In the future, the focus will be on exploring longitudinal case studies for validating findings in a systematic way. The findings highlight that logistics infrastructure functions as a catalyst, amplifying the benefits of FTAs beyond traditional tariff reductions by facilitating deeper GVC integration and reducing non-tariff barriers. The study reveals that transport development significantly contributes to trade growth, with deep trade agreements increasing domestic intermediaries by 0.48% per policy provision. Key enablers include supply environment capabilities, infrastructure quality, and absorptive capacity, while organizational control costs and geographic distance remain significant barriers. The study recommends integrated infrastructure investments, coordinated policy frameworks, workforce training initiatives, and the establishment of regional logistics hubs to enhance FTA-driven specialization.