Singapore is well positioned as a global hub for logistics and supply chain management. Singapore's modern logistics industry has many positive characteristics: efficiency, advanced technology, professionalism, and high quality service . Singapore is an economic model driven by foreign trade. As cross-border trade booms, companies operating in logistics in Singapore are seeking to diversify and expand into supply chain technology and logistics finance. Logistics services in trade play a pivotal role in the economic development and competitiveness of countries. This research mainly studied the impact of the logistics performance on Singapore's export trade through the gravity model using time series data analysis methods with sectoral data.
The gravity model was estimated using five different estimation procedures: pooled ordinary least squares, fixed effects model, random effects model, random effects with robust standard errors, and generalized least squares possible effects. The estimation results showed that the random effects model is better than the fixed effects one. However, both the fixed effects and random effects models gave similar results regarding the relationship between the Logistics Performance Index and Singapore's total exports. However, it can be noted that the random effects model is superior to the fixed effects model and the pooled ordinary least squares method. On the other hand, both the fixed random effects model and the random effects model gave consistent results, which are significant and positive estimates of the overall logistics performance index for both Singapore and the importing countries. This reinforces the result that the logistics performance index and Singapore's total exports have a positive correlation. While the results of all estimates were consistent regarding the inverse effect of distance on Singapore's exports, they were significant only for the pooled ordinary least method and the generalized least squares possible effects method. The signs of the controlling variables are also logical and consistent with the results of reference studies in this field, as there is a positive correlation between the GDP and total exports of Singapore, although it is not significant, perhaps due to the small number of observations. Meanwhile, a negative correlation is observed between distance and exports in all models; however, the fixed effects model lacks an estimate for distance, as it represents a time-invariant variable.. Based on the different models used to estimate the gravity model, whether linear or nonlinear, the results provide strong evidence that logistics performance has a positive association with export value. The results reflect further evidence of logistics performance as an important factor in improving the value of Singapore's overall exports. The research recommends that policy makers should implement measures to improve logistics services, especially in Indonesia. The importance of improving sub-logistics performance indicators in Indonesia, Vietnam, and Thailand should not be overlooked to achieve positive results in terms of time, cost, reliability, ease of arranging procedures for international shipments, and effective tracking and tracing. This could also increase international trade, both for overall exports and for each priority sector in Singapore.