Does Trade Facilitation Matter for Human Development in Lower-Middle-Income Countries?

This study aims to examine the impact of trade facilitation measures on human development in lower-middle-income countries. For this purpose, we employ panel data analysis for the 2007-2019. We estimate the relationship using four models: feasible generalized least squares, incorrect generalized least squares, panel-corrected standard errors, and Driscoll-Kraay. Our findings demonstrate that trade facilitation measures, particularly those related to port infrastructure quality and maritime transport efficiency, significantly contribute to human development in lower-middle-income countries. Based on these results, we recommend that the governments of these countries should prioritize implementing these measures, particularly those that enhance the port and maritime transport sector as a promising strategy to achieve human development.