Due to globalization, logistics has been constituting the main and capillary vessels of foreign trade. In today's global supply chains, better logistics systems allow for and facilitate the efficient flow of resources, goods and services. Since logistics plays an important role on countries’ economic growth, development and competitiveness, measuring the logistics capability of a country is critical. In this study, we collected data for 32 countries in the European region from various sources covering the period 2010 through 2018 and estimated several static panel data models to evaluate their logistics performance and to understand the factors that propel their LPIs. The results indicate that GDP per capita, the percentage of commercial service imports, and the liner shipping connectivity index have significant effects on the LPI at country level, surpassing other factors. Even though supported at only a significance level of 0.10, the most striking evidence is the negative relationship between the LPI and the percentage of commercial transport service imports, which has not been extensively investigated in the related literature. The strength of this study lies in adopting a panel-data approach with the inclusion of a variety of factors to explain the variance in the LPI.

Air cargo demand estimation is crucial for every part of the air industry for determining policies, making decisions on investments, pricing, marketing, etc. This study analyses factors affecting the air cargo demand of the European Region (23 countries) where no studies were found by making use of the two-step generalized method of moments (GMM). The effects of Total Airport Investments, Consumer Price Index, GDP Per Capita, Population, Foreign Trade Volume, Industrial Production Index, and Exchange Rate on Air Cargo Demand were examined with the data set covering the years between 2009 and 2018. The findings indicated that previous air cargo demand has explanatory power on current demand, and there was an inverse relationship between the change in the consumer price index and the amount of cargo. In addition, the panel regression estimator indicates a positive relationship between Foreign Trade and Industrial Production Index. The results show that price stability is of great importance not only from a macroeconomic perspective but micro economically also.