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The trilemma of innovation, logistics performance, and environmental quality in 25 topmost logistics countries: a quantile regression evidence

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  • Magazzino, Cosimo
  • Alola, Andrew Adewale
  • Schneider, Nicolas

Abstract

While the deployment of technological innovation was able to avert a devastating global supply chain fallout arising from the impact of ravaging COronaVIrus Disease 19 (COVID-19) pandemic, little is known about potential environmental cost of such achievement. The aim of this paper is to identify the determinants of logistics performance and investigate its empirical linkages with economic and environmental indicators. We built a macro-level dataset for the top 25 ranked logistics countries from 2007 to 2018, conducting a set of panel data tests on cross-sectional dependence, stationarity and cointegration, to provide preliminary insights. Empirical estimates from Fully Modified Ordinary Least Squares (FMOLS), Generalized Method of Moments (GMM), and Quantile Regression (QR) model suggest that technological innovation, Human Development Index (HDI), urbanization, and trade openness significantly boost logistic performance, whereas employment and Gross Fixed Capital Formation (GFCF) fail to respond in such a desirable path. In turn, an increase in the Logistic Performance Index (LPI) is found to worsen economic growth. Finally, LPI exhibits a large positive effect on carbon emissions, which is congruent with a strand of the literature highlighting that the modern supply chain is far from being decarbonized. Thus, this evidence further suggest that more global efforts should be geared to attain a sustainable logistics.

Suggested Citation

  • Magazzino, Cosimo & Alola, Andrew Adewale & Schneider, Nicolas, 2021. "The trilemma of innovation, logistics performance, and environmental quality in 25 topmost logistics countries: a quantile regression evidence," LSE Research Online Documents on Economics 117654, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:117654
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    More about this item

    Keywords

    CO emissions; Economic growth; Green supply chain management; Logistics performance; Panel data; Quantile regression;
    All these keywords.

    JEL classification:

    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative

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