IMPACT OF TRANSPORTATION FUEL CONSUMPTION AND TRADE ON LOGISTICS PERFORMANCE

Abstract

Logistics and transportation plays a vital role in local and international trade of a country because the cost of a product also depends on logistics. The study focuses on assessment of how logistics performance quality and trade related infrastructure has been effected by the burden of custom procedures, road sector diesel fuel consumption, air transport freight from the country, registered air transport and documents required to import from the country for the top 30 developed countries for the year 2016, whereas the data has been collected for 2008, 2010, 2012, 2014 & 2016 respectively due to limitation of availability of data on LP1Q. The study found that increase in road sector diesel fuel consumption, documents to import and burden of custom procedures along with registered air transport are negatively related whereas air transport freight is positively affecting the logistics performance quality and trade related infrastructure. The study also found some issues of the road renovation, port capacity and railway modernization required in some countries The study suggests that further research can be done on how modernizing railways, improving road and infrastructure, increasing capacity of ports can affect the quality of logistics performance for the country.