Transport and Logistics Economics in The Context of The Caucasus and Türkiye: The Economic Effects of Infrastructure, Service Quality, and Regional Integration

Abstract

Transportation and logistics networks have a significant role in the improvement trajectories of developing and transition economies. These are particularly supported by growing processes and regional integration factors. Logistics performance has increasingly become related to economic decision-making across short, medium, and long-term horizons. This is beyond typical growth determinants like capital accumulation and labour input. This article will demonstrate how logistics parameters relate to regional and national integration, income growth, with an emphasis on Armenia, Azerbaijan, Georgia, and Türkiye, over the 2010–2024 period. The empirical evidence supports the dominant role of capital accumulation while suggesting that the logistics integrated variables do not exhibit a consistent short-term effect. Instead of short-term growth factors, results support an interpretation of logistics performance as a structural facilitator of improvement. These outcomes state the presence of adjustment costs and delayed transmission mechanisms related to logistic investment. Accordingly, logistics activities that appear neutral in the short term may generate cumulative economic benefits over extended periods. The study adopts a hybrid methodological approach that combines quantitative panel estimations with qualitative interpretation. Finally, the analysis highlights the limitations of existing perception-based logistics indicators in capturing short-term effects, while specifying their relevance as long run horizon decision support tools for policy makers pursuing logistics-oriented development strategies.