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Improved infrastructures facilitate economic development and enhance shipping connectivity.
Transport, particularly shipping connectivity, is important for facilitating international trade.
Shipping connectivity is important for facilitating international trade growth.
Hypothesis 1: Shipping connectivity is positively correlated with intra-trade.
Fig. 1 Liner Shipping Connectivity Index of ASEAN.
In ASEAN, the country with the highest level of shipping connectivity as captured by the liner shipping connectivity index (LSCI) is Singapore, followed by Malaysia.
The results suggest that shipping connectivity affects both intra-trade and extra-trade.
The two types of trade flows are expected to increase with the enhancement of shipping connectivity.
The positive relationship between shipping connectivity and extra-trade is illustrated in Equation (2).
Here, shipping connectivity plays an important role in facilitating trade activities.
Fig. 2 Relationships among shipping connectivity, intra-trade and extra-trade.
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