The Mediator Effect of Logistics Performance Index on the Relation Between Corruption Perception Index and Foreign Trade Volume

Abstract

Logistics performance of a country plays an important role within both economic and social developments. Therefore examining the relationship among the logistic performance, corruption and foreign trade volume of a country would contribute to the literature. Logistics Performance Index (LPI) has firstly been issued byWorld Bank in 2007 and continued in the years 2010, 2012, 2014. In this paper the mediator effect of Logistics Performance Index (LPI) on the relation between Corruption Perception Index (CPI) and Foreign Trade Volume (FTV) analyzed for the years 2007, 2010, 2012, 2014. The hierarchical regression analysis method was used in order to determine the mediator effect. As per the analysis results, the mediator effect of LPI on the relation between CPI and FTV is statistically significant. Consequently it could be suggested that the logistics ability of a country trigger the relation between corruption and foreign trade volume.