Economic growth and logistics performance: A data-driven analysis

Abstract

The nexus between national economic indicators and the LPI has often been perceived as multifaceted and intricate. By employing DAGs as a methodological tool, this study has successfully deciphered this complexity across 74 nations, segmented into developed and developing categories. Our findings reveal that the economic stature of nations, as denoted by GDP per capita, foreign direct investment, and domestic investment, plays a paramount role in determining their logistics performance. Notably, the causal pathways influencing LPI exhibit variations based on a country’s development status. For instance, in developing countries, income per capita manifests as a linchpin in LPI determination, serving as a conduit for influences from other factors like trade and R&D expenditure. This suggests that improving income levels in these countries might be a keystone for enhancing logistical competencies. Conversely, in developed nations, the tapestry is slightly different. While per capita income continues influencing LPI, R&D expenditure emerges as another direct and influential factor. This dual influence, both direct and indirect through its effect on income per capita, implies that fostering research and innovation can serve as a catalyst for logistical advancement in developed nations.