Transport complex economies (TCEs), which comprise both upstream and downstream firms in the transport chain that conduct shipping and trade-related activities, can be desirable locations for port users (e.g., traders, logistics service providers, shipping lines and terminal operators) to perform their business activities. To explore TCEs, this study identifies trade facilitation measures at both the macro and micro levels to enhance regional performance. Hypotheses have been developed to build a theoretical model to illustrate the relationship between trade facilitation activities and trade costs. The economic outcomes are also examined in the theoretical model. To validate the proposed model, we have collected data from the World Bank and employed structural equation modelling. The result suggests that trade facilitation measures are negatively associated with trade cost. The result also suggests that the trade facilitation measures of a region is positively associated with its economic performance. Based on the findings, users can formulate effective and efficient strategies to select a location for their firm to conduct business activities. The findings illustrate the importance of the development of social capital for trade facilitation from the perspective of policy makers.
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