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Integrating Logistics into Global Production: A New Approach

Author

Listed:
  • Pablo Coto-Millán

    (Department of Economy, University of Cantabria, 39005 Santander, Spain)

  • David Paz Saavedra

    (Department of Economy, University of Cantabria, 39005 Santander, Spain)

  • Marta de la Fuente

    (Department of Economy, University of Cantabria, 39005 Santander, Spain)

  • Xose Luis Fernandez

    (Department of Economy, University of Cantabria, 39005 Santander, Spain)

Abstract

Background: Logistics has become a key driver of global economic production. This study investigates the role of logistics in global economic production by presenting a novel theoretical framework that integrates logistics performance into traditional models as a determinant production factor. Methods: Using panel data from 85 countries between 2007 and 2022, the research measures logistics performance through the Logistics Performance Index ( L P I ). Results: The analysis reveals that logistics performance, specifically factors such as customs efficiency, infrastructure quality, and tracking and tracing of shipments, significantly enhances global economic output. On the other hand, negative elasticities were observed for shipment timeliness and the cost competitiveness of international shipments, suggesting that inefficiencies in these areas can hinder economic growth. Conclusions: The findings underscore the need for targeted public policies to improve logistics infrastructure and efficiency, particularly in customs and trade logistics, to increase global production. Additionally, the study highlights the potential for improving the logistics sector to support sustainable development and economic interdependence among countries. This research provides important insights for policymakers and managers, indicating that effective logistics management can drive substantial improvements in production efficiency and overall economic performance.

Suggested Citation

  • Pablo Coto-Millán & David Paz Saavedra & Marta de la Fuente & Xose Luis Fernandez, 2024. "Integrating Logistics into Global Production: A New Approach," Logistics, MDPI, vol. 8(4), pages 1-9, October.
    • Handle: RePEc:gam:jlogis:v:8:y:2024:i:4:p:99-:d:1495349
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    References listed on IDEAS

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