The Relationship Between Logistics Performance And International Trade In Sierra Leone

Sierra Leone's economy is based on mineral extraction and agriculture to a large extent,the country is endowed with a number of natural resources which include copper and diamonds among others and China stands to be among the key trading partners of Sierra Leone.The impact of infrastructure regulations framework on the performance of any industry cannot be overlooked.The country has a number of logistics facilities which can meet the demands of the country and the region if they are well utilized.There is a high linkage between transport and logistics and other strategic factors of economic development.Additionally,Logistics services have an influence on the labour markets of developing countries.The main idea motivating this research is to investigate the existence of a relationship between international trade and logistics performance as measured by the World Bank's LPI.The research objectives for the study were;(1)to understand the factors that influence international trade in Sierra Leone,(2)to evaluate the logistics performance in Sierra Leone and(3)to establish the correlation between LPI and International Trade(Exports and Imports).A quantitative explanatory research design was used in conducting the study.Historical data about logistics performance index and international trade in Sierra Leone was used.For the first objective,the study has shown that there is a positive correlation between the Logistics Performance Indices and International trade.Additionally,the overall LPI score can be used as a better predictor for both exports than imports.Furthermore,customs service,ease of shipment and tracking all prove to be good predictors for exports and imports.The second objective was to understand the impeding factors to international trade.It was found that there are cumbersome documentation requirements for international trade.The international trade process is further made difficult by huge export certification fees.The trade statistics are not accurately captured partly because of the informal trade which happens around the country's borders and other system challenges.With regard to logistics,there is low private investments due to a number of factors and lack of adequate policies and institutional effectiveness.Finally,the Logistics Performance of the country has not been consistent and does not seem to be reflecting the investments made in the sector.It can be confirmed by this study that Logistics is a system,poor performance in one dimension has an impact on the other dimensions.