Influence of Logistics Performance on Economic Growth in BRICS Countries

Abstract

Logistics have played a crucial role in fulfilling economic development. BRICS countries is expected to take over 38% of the world's GDP after adding new members in 2024. This empirical study examines the impact of the logistics sector on economic growth across all 10 BRICS countries. The analysis utilizes panel data and relies on the World Bank Logistics Performance Index scores. Findings indicate that overall LPI is negative insignificant determinant for economic growth in BRICS countries during the years. The Random Effects model exhibits consistency, efficiency and significance. This may be attributed to the wide differences of LPI overall scores and Trade Across Borders (TAB) scores in BRICS countries. Results also reveal that Gross fixed capital formation, as a proxy for infrastructure investment, is the main statistically significant variable affecting GDP per capita in BRICS countries. Additionally, the main two significant variables among individual LPI are, the regularity with which shipments reach the recipient within the specified or anticipated timeframe, along with the capability to monitor and trace these consignments. Wide opportunities exist to share knowledge and exchange experiences in developing logistic sector among BRICS countries.

Keywords

• logistics
• brics countries
• . lpi (logistics performance index)
• panel data analysis
• egypt