Logistics infrastructure and export survival in European Union countries

This study investigates the effects of logistics performance on export survival using a sample of 28 European Union (EU-28) exporters and 70 importers for the 2005–2017 period. We find that the mean duration of EU-28 exports is 2.37 years. Furthermore, the duration is two months longer when partners have higher than average levels of Logistics Performance Index (LPI). Estimates from the discrete-time logit model with random effects indicate that improvements in logistics performance in both the exporting and importing country significantly increase the survival of EU-28 exports. We also find that the “hard” logistics of importers have a greater impact on the duration of EU-28 exports than do those of exporters. Conversely, the “soft” logistics of exporters have a greater effect on the duration of EU-28 exports than do those of importers.