The Effects of Logistics Performance on International Trade of Agricultural Products: Uzbekistan and CIS Countries

Abstract

The main aim of the research is to analyze the effect of Uzbekistan-CIS countries LPI sub-index score gap on international trade of agricultural products between Uzbekistan and CIS countries in the period of 2010-2018. Based on above mentioned aim, research question listed below will be answered. What kind of correlation does it have between logistical development rate gap between Uzbekistan and CIS countries and international trade of agricultural products in 2010-2018? Absolute difference in which LPI (Logistics Performance Index) sub-indices has the highest impact on the trade of agricultural products between Uzbekistan and CIS countries in the period of 2010-2018? In order to analyze the effects of logistics performance on international trade of agricultural products between Uzbekistan and CIS countries in the period of 2010-2018, gravity model of international trade was developed by adding 6 sub-indexes of LPI (The Logistics Performance Index). Empirical results showed that between countries’ LPI sub-index score difference and bilateral trade volume has negative correlation. Partner countries showing bigger difference in LPI sub-index score represent lower trade volume.