Logistics Services and Their Impact on Saudi Arabia's Exports : An Analytical Econometric Study for the Period (2007-2023)

Abstract

Through the past three decades, most of the world’s economies have focused on the importance of logistic services and their development, which has prompted the Kingdom of Saudia Arabia to focus on the performance level of its logistics and rely on it as an effective solution for developing its exports. The study aimed to analyze the development of both: Saudi exports and the overall Logistics Performance Index (LPI) along with its sub-indicators in the Kingdom of Saudi Arabia during the period (2007–2023). It also sought to measure the impact of the LPI on exports for a selected group of countries. The deductive approach and both the descriptive analytical method and quantitative analysis were used. The study found sever results, the most important of which are the following : Saudi Arabia's reliance on merchandise exports is significantly greater than its service exports, where The average share of merchandise exports to total exports during the study period was 94%, while the share of service exports was 6%. Furthermore, the econometric model showed a significant positive relationship between the Logistics Performance Index and exports for the selected group of countries. The study also provided several recommendations, the most important being that developing countries should improve their logistics performance by developing the infrastructure for all modes of transport, thereby contributing to an increase in their exports.