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ANALYSIS OF TRANSPORT LOGISTICS AND ITS ROLE IN GROSS
DOMESTIC PRODUCT IN WTO MEMBER STATES
NURDINOV MURODALI ALIJANOVICH
Head of the "Transport Logistics" Department, Andijan Institute of Mechanical
Engineering, Andijan, UzbekistanTel: (+99890) 210 3363Email:dariyod@bk.ru
FAZLIDDINOV SALOHIDDIN SADRIDDIN O‘G‘LI
Master’s student, Andijan Institute of Mechanical
EngineeringTel: (+99891) 600 – 60 - 88Email:
Annotation
This article analyzes the transport logistics of member states of the World Trade
Organization (WTO) and studies its role in Gross Domestic Product (GDP). It
examines how joining the WTO impacts transport and logistics systems, the
effectiveness of free trade conditions, the significance of integration into international
supply chains, and factors influencing the development of transport infrastructure. The
article provides an in-depth analysis of export development, modernization of transport
systems, and their contribution to GDP through WTO membership. It also highlights
how the growth of international trade, opening of new markets, and improvement of
transport systems influence a country’s economic growth. This paper helps deepen
understanding of the relationship between transport logistics and economic
development and serves as a useful guide for determining strategic development paths
for WTO member countries
.
[2]
Keywords:
World Trade Organization (WTO), transport logistics, Gross
Domestic Product (GDP), export, international trade, transport infrastructure, free
trade, supply chain, economic development, investments, integration, transit, economic
growth..
Introduction
The World Trade Organization (WTO) is a significant organization focused on
developing international trade, reducing trade barriers, and ensuring global economic
integration. WTO membership facilitates trade among member states, enhances
economic interdependence, and demands improvements in national transport and
logistics systems. This article analyzes the impact of WTO membership on the
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transport logistics of member countries and examines the role of transport
infrastructure in GDP [1].
1.
Impact on Gross Domestic Product (GDP)
WTO membership positively influences the economies of member states in
several waysi:
1.1.Expansion of Trade and Economic Relations
By joining the WTO, states integrate more closely with the global market. Free
trade agreements and reduced tariffs simplify export-import processes and boost
foreign trade. Consequently, GDP grows as increased export and import volumes
stimulate economic growth..
1.2. Investments and Economic Development
WTO membership provides member states with opportunities to attract
international investments. Trade and investment barriers are reduced, enabling the
development of new industries and expansion of existing sectors. As a result, new jobs
are created, and the pace of economic growth accelerates..
1.3. Efficient Allocation of Resources and Technologies
WTO membership intensifies competition, granting countries access to global
markets. This competition leads to lower prices and improved product quality. In such
conditions, nations are compelled to make their economies more efficient and
innovative, positively impacting their GDP.
1.4. Intensified Competition
WTO membership intensifies competition, granting countries access to global
markets. This competition leads to lower prices and improved product quality. In such
conditions, nations are compelled to make their economies more efficient and
innovative, positively impacting their GDP..
2. Impact on Transport Logistics
WTO membership also contributes to the effective development of transport and
logistics systems. Key aspects of this process include:
2.1. Reduction of Trade Barriers and Optimization of Transport
WTO membership reduces trade barriers between countries, facilitating the free
movement of goods and services. This ensures the efficient functioning of transport
systems. For instance, reduced tariffs, simplified transport documentation, and
expedited border crossing processes result in faster and more cost-effective
transportation.
2.2. Development of Transport Infrastructure
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Member states of the WTO, as part of their integration into the global economy,
have access to investments in transport infrastructure. These investments improve
ports, railway networks, highways, and airports, enhancing the quality of transport
services and reducing transportation costs.
2.3. Competitiveness in the Transport Sector and Logistics Network
WTO membership fosters competition in transport and logistics services among
countries. This competition improves the quality of transport services, reduces costs,
and helps create globally competitive transport systems
2.4. Integration of Transport Systems
WTO membership aids in the integration of transport systems. This integration
harmonizes transport services between various countries, such as multimodal
transportation, speeding up transport processes and reducing costs..
2.5. Increased Freight Volumes
The expansion of trade relations leads to an increase in freight volumes. This
process compels transport and logistics sectors to adopt new technologies to enhance
services and create new opportunities. Such developments significantly contribute to
global economic growth.. [5]
Core Discussion.
WTO and Transport Logistics Systems
The World Trade Organization, established in 1995, now comprises over 160
member countries. Its primary goal is to liberalize international trade, reduce tariffs,
and eliminate other trade barriers. These changes directly impact transport and logistics
systems. 3]
1.1 Conditions of Free Trade
Free trade conditions among WTO member countries drive the development of
transport systems. Reduced trade barriers, simplified customs procedures, and
accelerated transit and delivery processes open up more opportunities for transit freight
and logistics services between countries..[5]
1.2. Integration into International Supply Chains
WTO membership integrates countries into international supply chains,
increasing the efficiency of transport and logistics systems. New collaborations,
innovations, and investments among countries enhance transport infrastructure.
Modernization of transit routes, introduction of new transport methods, and adherence
to WTO rules ensure seamless global supply chain connections. For instance, the Trade
Facilitation Agreement (TFA), effective since 2017, acts as a GPS for trade, guiding
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cross-border transactions with clear and standardized procedures. Full implementation
of the TFA could reduce trade costs by an average of 14.3% and boost global trade by
up to $1 trillion annually, [4]
1.3. Improvement of Transport Networks
WTO membership improves transport networks between countries. Nations
harmonize their transport infrastructure and services, forming international transport
corridors, new logistics centers, and multimodal transport systems. These
developments enable faster and more cost-effective transportation of goods..[3]
2. Role of Transport Logistics in GDP
Gross Domestic Product (GDP) reflects a country’s economic potential and
production volume. The role of transport logistics in GDP is directly linked to
economic growth and the development of international trade. [5]
2.1. The Link Between Transport Logistics and GDP
Transport logistics is one of the most critical sectors of the economy. A well-
organized transport system allows for the efficient utilization of a country’s production
capacities. As WTO member states engage in free trade and increased export
opportunities, transport and logistics systems become even more significant. Logistics
costs form a substantial part of GDP. Improved transport systems enhance production
and supply chains, enabling faster and more efficient delivery of goods, thus boosting
GDP. Additionally, new logistics centers, transport routes, and technologies have a
significant impact on economic growth. [3].
2.2. The Role of Logistics in Export Development
WTO member states must have efficient transport systems to develop exports. For
emerging economies like Uzbekistan, which is preparing for WTO membership,
developing transport systems is critical for increasing export volumes and accessing
international markets.
1-table
2020
2021
2022
2023
2024
2025
World
merchandise
trade volume
-5.3
9.0
2.2
-1.1
2.7
3.0
Exports
North America
-9.2
6.4
3.9
3.7
2.1
2.9
South America
-5.0
6.7
3.0
2.3
4.6
-0.1
Europe
-8.5
6.9
1.8
-2.6
-1.4
1.8
CIS
-1.1
-0.8
-1.9
-4.5
4.5
1.7
Africa
-7.2
3.8
-2.5
4.3
2.5
2.2
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Middle East
-6.4
-1.6
3.8
1.1
4.7
1.0
Asia
0.6
13.1
0.2
0.3
7.4
4.7
Imports
North America
-5.2
11.9
5.7
-2.0
3.3
2.0
South America
-9.9
24.9
4.1
-4.5
5.6
1.7
Europe
-8.2
7.5
4.4
-5.0
-2.3
2.2
CIS
-5.2
9.4
-5.7
17.9
1.1
1.7
Africa
-13.9
5.8
6.5
0.1
1.0
1.1
Middle East
-8.7
12.9
10.5
8.5
9.0
-1.1
Asia
-1.0
10.3
-1.0
-0.7
4.3
5.1
World GDP at market
exchange rates
-2.9
6.3
3.1
2.7
2.7
2.7
North America
-2.8
5.7
2.1
2.4
2.4
1.6
South America
-6.3
7.7
4.1
1.8
1.8
2.9
Europe
-5.8
6.6
3.5
0.7
1.1
1.6
CIS
-2.4
5.7
0.1
3.9
3.8
1.9
Africa
-2.4
4.7
3.8
3.1
3.3
3.9
Middle East
-3.5
4.4
6.1
1.4
1.9
3.7
Asia
-0.7
6.4
3.3
4.3
4.0
4.0
Table 1: Merchandise trade volume and GDP growth, 2020-2025
Europe continued to significantly weigh on global trade in 2024, stalling overall
trade, including import and export indicators. The primary sectors driving Europe's
negative export performance are chemicals and transportation vehicles. Organic
chemicals, pioneers of other pharmaceuticals, are recovering following the trend of
increased demand during the pandemic. The decline in the automotive industry raises
more concerns related to the potential ripple effect across value chains.
The largest decline in European imports was in machinery, marked by a
substantial reduction in imports from China. This decline is not merely a result of
fragmentation, as similar reductions have been observed in geopolitically aligned
economies such as the USA, South Korea, and Japan. Conversely, imports from India
and Vietnam are rising, indicating their emerging role as "bridging" economies.
In contrast, Asian exports are experiencing growth driven by key manufacturing
economies like China, Singapore, and South Korea. However, Japan remains stagnant,
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with exports stabilizing in 2024 after a decline in 2023. On the import side, Asia
presents a mixed picture. While China's imports grow, economies like Singapore,
Malaysia, and others, including India and Vietnam, show moderate growth but
demonstrate stronger upward trends. Asian exports are set to grow faster than other
regions this year, increasing by 7.4%, followed by the Middle East (4.7%), South
America (4.6%), the CIS region (4.5%), Africa (2.5%), North America (2.1%), and
Europe (-1.4%). On the import side, the fastest-growing region will be the Middle East
(9.0%), followed by South America (5.6%), Asia (4.3%), North America (3.3%), the
CIS region (1.1%), Africa (1.0%), and Europe (-2.3%). The current forecast is based
on an expected 2.7% growth in global GDP in 2024 (slightly higher than last year's
2.6% forecast in April). Economic growth will be fastest in Asia (4.0%), followed by
the CIS region (3.8%), Africa (3.3%), North America (2.4%), the Middle East (1.9%),
South America (1.8%), and Europe (1.1%).
Global GDP growth in 2025 is expected to remain unchanged at 2.7%, while
global trade growth is projected to rise to 3.0%, partly due to the EU’s positive
contribution to global trade. Asia is forecast to lead in both export growth (4.7%) and
import growth (5.1%) across other regions. All regions are expected to see an increase
in trade flows in 2025 in terms of volume, except for a slight decline in South American
exports (-0.1%) and a more significant drop in Middle Eastern imports (-1.1%). [4]
2.3. Investments and Economic Development
Improvements in transport and logistics systems have a significant impact on
GDP growth. Free trade and international integration help attract new investments.
International investors aim to invest in countries with efficient transport systems,
which, in turn, stimulate economic growth..
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2-Table: Merchandise exports and imports by region, 2019Q1-2025Q2
According to various data from the World Trade Organization (WTO), exports
of goods from Least Developed Countries (LDCs) are forecast to grow by 1.8% in
2024. This marks a slowdown compared to the 4.6% growth recorded in 2023. Export
growth is expected to rebound in 2025, reaching 3.7%. Meanwhile, LDC imports are
projected to grow by 5.9% in 2024 and 5.6% in 2025, following a 4.8% decline in
2023. Quarterly changes in the volume of goods exports and imports by region, as
shown in Figure 2, indicate fluctuations up to the second quarter of 2025.
Exports from Asia have grown since the COVID-19 pandemic, but have reached
a high plateau, partly explaining the region's weak export growth since then. If the
forecast materializes, Asia's exports will rise by 29.4% by the second quarter of 2025
compared to their average level in 2019, followed by South America, North America,
and the Middle East, whose exports are expected to grow by 10.1%, 9.1%, and 5.7%,
respectively, during the same period. African exports are expected to decline by 1.8%,
while European exports are forecast to drop by 2.1%. Meanwhile, exports from CIS
countries are projected to decrease by 10.1% over the same period.
In terms of import growth, the CIS region is expected to experience the largest
increase since 2019, with imports rising by 21.0% by mid-2025, followed by the
Middle East (19.3%) and South America (18.5%). Imports from Asia are forecast to
grow by 17.6%, while North America is expected to see a 15.1% increase. Africa’s
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imports are projected to grow by just 2.0% during the same period, while Europe will
be the only region to experience a sharp decline in imports, dropping by -1.4%. [3]
Methodology and Empirical Analysis
.
Membership in the World Trade Organization (WTO) has a significant impact
on the economic systems and transport logistics of member states. Membership
facilitates the free movement of goods and services between member states, reduces
tariffs and trade barriers, and enhances the process of integration into the global
economy. These processes, in turn, affect Gross Domestic Product (GDP) and the
efficiency of transport logistics. Below, the impact of WTO membership on GDP and
transport logistics is analyzed
Conclusion
Joining the World Trade Organization significantly enhances a country’s
transport logistics and its role in GDP. Free trade, opening new markets, modernization
of transport networks, and increased investments drive economic growth. Additionally,
improving the efficiency of transport systems contributes to export development,
economic growth, and a country’s global competitiveness.
For developing nations like Uzbekistan, WTO membership is vital for modernizing
transport and logistics systems, boosting export potential, and stimulating economic
growth. Successful implementation of these processes requires investment in transport
infrastructure and the development of international partnerships
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