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An analysis of explanatory factors of logistics performance of a country

Author

Listed:
  • Basarab Gogoneata

    (Academy of Economic Studies, Bucharest)

Abstract

The paper uses standard econometric techniques and the Logistics Performance Index calculated by The World Bank for evaluating the impact of several key macroeconomic variables on the quality of the logistics sector from 42 countries and regions. The regression results and the graphs have revealed that there is a strong relationship between the development of the services sector and the logistics performance of a country. Services are a major source of sustainable economic development, but they are very sensitive to the quality of the infrastructure and the functioning of institutions. Another finding is that many economies where a significant part of value added is generated in industrial activities tend to have high growth rates and lower logistics performance. Many of these countries are located in Central and Eastern Europe and their economic expansion was mainly supported by foreign direct investments in industrial sites and real estate developments. Since these businesses are cyclical there is a high risk of an economic downturn. These countries, particularly Romania, should rapidly improve their trade and transport facilitation framework, i.e., logistics performance. Such measures will allow the emergence of a robust service sector able to make the economic development sustainable by cushioning the cyclical shocks from the industrial side of economy.

Suggested Citation

  • Basarab Gogoneata, 2008. "An analysis of explanatory factors of logistics performance of a country," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 10(24), pages 143-156, June.
  • Handle: RePEc:aes:amfeco:v:10:y:2008:i:24:p:143-156
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    References listed on IDEAS

    as
    1. Gaël Raballand & Jean-François Arvis & Michel Bellier, 2006. "Success Factors for Improving Logistics in a Middle-Income Country," World Bank Publications - Reports 11771, The World Bank Group.
    2. Jean-François Arvis & Gaël Raballand & Jean-François Marteau, 2010. "The Cost of Being Landlocked : Logistics Costs and Supply Chain Reliability," World Bank Publications - Books, The World Bank Group, number 2489.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Zhanarys RAIMBEKOV & Bakyt SYZDYKBAYEVA & Zhibek RAKHMETULINA & Darima ZHENSKHAN, 2018. "The Effectiveness Of Logistics Development And Its Impact On The Economies Of The Countries Along The Silk Road Passing Through Kazakhstan," Transport Problems, Silesian University of Technology, Faculty of Transport, vol. 13(4), pages 127-142, December.
    2. Luminiţa Nicolescu & Cristina Galalae & Alexandru Voicu, 2013. "Solving a Supply Chain Management Problem to Near Optimality Using Ant Colony Optimization, in an International Context," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 15(33), pages 8-26, February.
    3. Mariana Cristina Ganescu & Mihaela Asandei & Andreea Gangone & Camelia Chirilă, 2013. "Performance Determinants for Responsible Supply Chain Management in the European Emerging Countries," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 15(33), pages 154-169, February.
    4. Göçer, Aysu & Özpeynirci, Özgür & Semiz, Meltem, 2022. "Logistics performance index-driven policy development: An application to Turkey," Transport Policy, Elsevier, vol. 124(C), pages 20-32.

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    More about this item

    Keywords

    logistics performance; services; economic growth;
    All these keywords.

    JEL classification:

    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O29 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Other

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