Estimating Trade Facilitation in a Regional Integration Initiative: Leveraging the Logistics Performance Index

Irena Kikerkova – Ss. Cyril and Methodius University in Skopje, Faculty of Economics – Skopje, Republic of North Macedonia

Predrag Trpeski – Ss. Cyril and Methodius University in Skopje, Faculty of Economics – Skopje, Republic of North Macedonia

Ljuben Kocev – Ss. Cyril and Methodius University in Skopje, Faculty of Economics – Skopje, Republic of North Macedonia

Jasna Tonovska – Ss. Cyril and Methodius University in Skopje, Faculty of Economics – Skopje, Republic of North Macedonia

Abstract: This study examines trade determinants, with a particular focus on logistics within the context of a regional integration initiative. A gap in the literature concerning the application of gravity models to the TRACECA initiative is identified through the literature review. Subsequently, an analy­sis of the legal framework underpinning TRACECA is undertaken. Utilizing the World Bank’s Logistic Performance Index (LPI) within a gravity model framework, the study evaluates the impact of trade facilitation within the TRACECA region. Findings indicate positive associations between trade and GDP, common language, and shared borders, while distance exerts a neg­ative influence. The research underscores the role of the LPI in facilitating trade within TRACECA, advocating for collaborative endeavors to enhance logistics, remove latent barriers, and streamline customs procedures. Fur­thermore, the study advocates for increased investment to strengthen TRACECA’s trade facilitation initiatives, emphasizing the necessity of mutual political commitment to advance regional trade.

8th International Scientific Conference – EMAN 2024 – Economics and Management: How to Cope With Disrupted Times, Rome, Italy, March 21, 2024, SELECTED PAPERS, published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia; ISBN 978-86-80194-84-4, ISSN 2683-4510, DOI: https://doi.org/10.31410/EMAN.S.P.2024

Creative Commons Non Commercial CC BY-NC: This article is distributed under the terms of the Creative Commons Attribution-Non-Commercial 4.0 License (https://creativecommons.org/licenses/by-nc/4.0/) which permits non-commercial use, reproduction and distribution of the work without further permission. 

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