Transport as a catalyst for regional trade and economic development

Abstract

This study examined the role of transport as a catalyst for export performance. Using a fixed-effects panel estimator with robust clustered standard errors, we analysed data from 31 countries over the 2022-2024 period. The major findings revealed that the transport and logistics performance index was a strong, positive predictor of export volumes, whereas import costs significantly reduced export growth. Remarkably, the direct cost of export was positive but not statistically significant, suggesting that higher export volumes may lead to greater procedural complexity, which increases the cost of exports. Regional integration through ECOWAS and SADC was associated with lower export performance, indicating the possible existence of non-tariff barriers among countries. The model also showed a substantial negative effect for landlocked countries, though at the margin of statistical significance. These findings emphasize the key role of trade facilitation, particularly efficient transport logistics and improved import procedures, in boosting export competitiveness, especially within the African region. The analysis suggests that policy efforts to reduce trade barriers should prioritize transport and logistics infrastructure and import facilitation to stimulate export growth.