The Impact Of Logistics Performance On Participation In Global Value Chains

Abstract

The study aims to measure the impact of logistics performance on participation in global value chains in Qatar, Kuwait, Oman, Algeria, Tunisia, and Morocco during the period from 1996 to 2020. The effects on participation in global value chains were examined through two approaches; the first approach is the effects on forward links. The second effect is on participation in global value chains through backlinks. The impact of logistical performance was measured by looking at the impact of container port traffic and air transport, in addition to the impact of economic variables related to explaining the phenomenon, such as per capita GDP, foreign direct investment, and economic freedom. Econometric models were relied upon using dynamic approaches estimated through the bias-corrected method of moments. The study concluded that container port traffic has positive effects on participation in global value chains through backward and forward links, as well as a more profound impact on forward links. Foreign direct investment also contributes to deepening the participation of Arab countries in global value chains through forward links. The results also underscore the importance of economic growth as a promoter of deeper integration into the global economy through global value chains across forward and backward linkages