Mapping the Moderating Role of Logistics Performance of Logistics Infrastructure on Economic Growth in Developing Countries

Abstract

Logistics performance is an important determinant of economic growth. The present study investigates the moderating role of logistics performance of the logistic infrastructure on economic growth in developing countries. We employ the World Bank computed LPI index in the year 2010, 2012, 2014, 2016 and 2018 to measure the logistic performance. The current research includes the 50 developing economies, and a panel data set comprising of total 300 observations is collected. The study used the conventional Cobb–Douglas production function with labor, capital stock as main drivers of economic growth. The study found that the labor and capital endowments have significantly different impacts in terms of elasticity coefficients for developing countries with different logistics performance levels. It implies that logistics performance, i.e., the efficient performance of logistic infrastructure, plays a moderator role in economic growth in developing economies.

Keywords

• logistic performance
• logistics performance index
• economic growth
• higher LPI performer developing economies
• low LPI performer developing economies