The Relationship Between Financial Development and Logistics Performance Index: A Panel ARDL Approach in Emerging Markets
DOI:
https://doi.org/10.31181/sems21202424cKeywords:
Financial Development, Logistics Performance, Emerging MarketsAbstract
The term "emerging markets" refers to countries that are undergoing economic and financial development. As financial development progresses in these nations, the capital available for international trade and the expansion of logistics infrastructure grows as well. This increased capital enables the financing of international trade activities and facilitates the execution of necessary logistics operations efficiently and effectively. Additionally, with enhanced financial development, it becomes easier to secure the capital required to improve logistics infrastructure and make it more functional. In this study, analyses are conducted using the Panel autoregressive distributed lag method in emerging market countries to evaluate the direct and indirect effects of financial development on logistics performance. The results reveal that increased access to financial institutions and markets positively affects logistics performance in both the short and long term. Among financial variables, the depth of financial institutions exhibits the strongest long-term influence, suggesting that a stable financial system is crucial for logistics efficiency. These insights provide valuable guidance for decision-makers aiming to strengthen logistics infrastructure and trade capabilities. By recognizing the role of financial development in supporting logistics performance, policymakers can craft strategies that support sustainable economic growth through improved logistics processes.
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