THE CORRELATION OF LOGISTICS PERFORMANCE AND ECONOMIC CONDITION: COMPARATIVE ANALYSIS BETWEEN DEVELOPING AND DEVELOPED COUNTRIES
Received: 26th December 2023 Revised: 4th January 2024, 8th January 2024 Accepted: 2nd January 2024
DOI:
https://doi.org/10.20319/pijss.2024.102.163196Keywords:
Logistic, Supply Chain Management, Supply Chain Performance, Developed and Developing CountriesAbstract
Logistics sector is raising attention as previous studies have shown that it could directly affect a country’s economic condition positively. Developing countries recognizing this opportunity should be trying to pursue and improve their logistics condition so that they can catch up and mature in their own economic condition just like the developed countries. Yet, how close the gaps between are developed and developing countries if we look at the perspective of supply chain through the logistics sector. In this research, a total of 588 observations were divided and classified into 2, namely developed and developing and analyzed whether supply chain performances through logistics performance have direct correlation with that country’s economic condition and the comparative analysis the difference between the uses of the logistics sector in each classification economic condition. This research finds that supply chain performance through logistics performance do have a direct impact on a country's economic condition. However, it was also found that the impact is statistically insignificant as there are limited data samples and other variables that were not considered. This research will covet the supply chain and economic condition field of studies and this research also provides recommendation for future research.
References
Aiginger, K., 1998. A framework for evaluating the dynamic competitiveness of countries. Structural change and economic dynamics, 9(2), pp.159-188. https://doi.org/10.1016/S0954-349X(97)00026-X
Arvis, J.F., Ojala, L., Wiederer, C., Shepherd, B., Raj, A., Dairabayeva, K. and Kiiski, T., 2018. Connecting to compete 2018. https://doi.org/10.1596/29971
Babatunde, A., 2011. Trade openness, infrastructure, FDI and growth in sub-Saharan African countries. Journal of management policy and practice, 12(7), p.27.
Banomyong, R., 2010. Logistics Challenges in Cambodia, Lao PDR, Myanmar, and Vietnam. AStudy ON UPGRADING INDUSTRIAL STRUCTURE OF CLMV COUNTRIES, 392.
Barzelaghi, M.T., Dizaji, M. and Laleh, M.M., 2012. The effect of transportation infrastructure on foreign direct investment attraction in Iran. International journal of economics and finance studies, 4(2), pp.153-161.
Bascom, W.O., 2016. The economics of financial reform in developing countries. Springer.
Beamon, B.M., 1999. Measuring supply chain performance. International journal of operations & production management, 19(3), pp.275-292. https://doi.org/10.1108/01443579910249714
Behrouzi, F. and Wong, K.Y., 2013. An integrated stochastic-fuzzy modeling approach for supply chain leanness evaluation. The International Journal of Advanced Manufacturing Technology, 68, pp.1677-1696. https://doi.org/10.1007/s00170-013-4966-1
Beysenbaev, R. and Dus, Y., 2020. Proposals for improving the logistics performance index. The Asian Journal of Shipping and Logistics, 36(1), pp.34-42. https://doi.org/10.1016/j.ajsl.2019.10.001
Beysenbaev, R., 2018. The importance of country-level logistics efficiency assessment to the development of international trade. British Journal for Social and Economic Research, 3(6), pp.13-20. https://doi.org/10.22406/bjser-18-3.6-13-20
Breusch, T.S. and Pagan, A.R., 1980. The Lagrange multiplier test and its applications to model specification in econometrics. The review of economic studies, 47(1), pp.239-253. https://doi.org/10.2307/2297111
Burmaoglu, S. and Sesen, H., 2011. Analyzing the dependency between national logistics performance and competitiveness: Which logistics competence is core for national strategy?. Journal of competitiveness, 3(4).
Çelebi, D., Bayraktar, D. and Bingöl, L., 2010. Analytical Network Process for logistics management: A case study in a small electronic appliances manufacturer. Computers & Industrial Engineering, 58(3), pp.432-441. https://doi.org/10.1016/j.cie.2009.09.002
Chen, T., DeJuan, J. and Tian, R., 2018. Distributions of GDP across versions of the Penn World Tables: A functional data analysis approach. Economics Letters, 170, pp.179-184. https://doi.org/10.1016/j.econlet.2018.05.038
Chopra, S. and Meindl, P. (no date) Supply Chain Management : Strategy, Planning and Operation. 7th edn. Pearson.
Chow, G.C., 1960. Tests of equality between sets of coefficients in two linear regressions. Econometrica: Journal of the Econometric Society, pp.591-605. https://doi.org/10.2307/1910133
Christopher, M., 1986. Implementing logistics strategy. International journal of physical distribution & materials management, 16(1), pp.52-62. https://doi.org/10.1108/eb014627
Chu, Z., 2012. Logistics and economic growth: a panel data approach. The Annals of regional science, 49(1), pp.87-102. https://doi.org/10.1007/s00168-010-0434-0
Dee, P. and Findlay, C. 2006. Trade Facilitation: What, Why, How, Where and When? 3rd LAEBA Annual Meeting Seoul, South Korea, November 16
Dang, V.L. and Yeo, G.T., 2018. Weighing the key factors to improve Vietnam's logistics system. The Asian journal of shipping and logistics, 34(4), pp.308-316. https://doi.org/10.1016/j.ajsl.2018.12.004
Devlin, J. and Yee, P., 2005. Trade logistics in developing countries: The case of the Middle East and North Africa. World Economy, 28(3), pp.435-456. https://doi.org/10.1111/j.1467-9701.2005.00620.x
Dimitrov, P., 1991. National logistics systems.
Dossi, A. and Patelli, L., 2010. You learn from what you measure: financial and non-financial performance measures in multinational companies. Long Range Planning, 43(4), pp.498-526. https://doi.org/10.1016/j.lrp.2010.01.002
Ekici, Ş.Ö., Kabak, Ö. and Ülengin, F., 2016. Linking to compete: Logistics and global competitiveness interaction. Transport Policy, 48, pp.117-128. https://doi.org/10.1016/j.tranpol.2016.01.015
Evangelista, P. and Sweeney, E., 2009. The role of information and communication technology in small Italian logistics enterprises. International Journal of Business and Systems Research, 3(1), pp.1-18. https://doi.org/10.1504/IJBSR.2009.023504
Feenstra, Robert C., Robert Inklaar and Marcel P. Timmer (2015), "The Next Generation of the Penn World Table" American Economic Review, 105(10), 3150-3182. https://doi.org/10.1257/aer.20130954
Gabler, S. (2014), “Gabler wirtschaftslexikon. schlagworte: kooperation, fokales unternehmen”, Neue Institutionenökonomik, Institution, Transaktionskostenökonomik.
Galankashi, M.R., Fallahiarezoudar, E., Moazzami, A., Helmi, S.A., Rohani, J.M. and Yusof, N.M., 2018a. An efficient integrated simulation–Taguchi approach for sales rate evaluation of a petrol station. Neural Computing and Applications, 29, pp.1073-1085. https://doi.org/10.1007/s00521-016-2491-5
Galankashi, M.R., Fallahiarezoudar, E., Moazzami, A., Yusof, N.M. and Helmi, S.A., 2016. Performance evaluation of a petrol station queuing system: A simulation-based design of experiments study. Advances in Engineering Software, 92, pp.15-26. https://doi.org/10.1016/j.advengsoft.2015.10.004
Galankashi, M.R., Helmi, S.A., Hisjam, M. and Rahim, A.R.A., 2018b. Leanness assessment in automotive industry: case study approach. International Journal of Value Chain Management, 9(1), pp.70-88. https://doi.org/10.1504/IJVCM.2018.091110
Gani, A., 2017. The logistics performance effect in international trade. The Asian Journal of Shipping and Logistics, 33(4), pp.279-288. https://doi.org/10.1016/j.ajsl.2017.12.012
Goel, R.K., Saunoris, J.W. and Goel, S.S., 2021. Supply chain performance and economic growth: The impact of COVID-19 disruptions. Journal of Policy Modeling, 43(2), pp.298-316. https://doi.org/10.1016/j.jpolmod.2021.01.003
Goh, M. and Ang, A., 2000. Some logistics realities in Indochina. International Journal of Physical Distribution & Logistics Management, 30(10), pp.887-911. https://doi.org/10.1108/09600030010351273
Gourdin, K., 2006. Global logistics management: a competitive advantage for the 21st century. Wiley-Blackwell.
Gujarati, D.N., 2022. Basic econometrics. Prentice Hall.
Handfield, R.B. and Nichols Jr, E.L., 1999. Introduction to. Supply Chain Management, Prentice Hall, Englewood Cliffs, NJ, pp.1-29.
Hausman, J.A., 1978. Specification tests in econometrics. Econometrica: Journal of the econometric society, pp.1251-1271. https://doi.org/10.2307/1913827
Hausman, W.H., Lee, H.L, Subramaniam, U. 2013. The impact of logistics performance on trade. Production and Operations Management, 22(2), 236-252. https://doi.org/10.1111/j.1937-5956.2011.01312.x
Herliana, L. and Parsons, D., 2011. Logistics in Indonesia. APEC Policy Support Unit, The Impacts and Benefits of Structural Reforms in the Transport, Energy and Telecommunications Sectors in APEC Economies, Singapore: APEC Policy Support Unit, pp.446-61.
Hoekman, B. and Nicita, A. 2011. Trade policy, trade costs, and developing country trade. World Development, 39, 2069-2079. https://doi.org/10.1016/j.worlddev.2011.05.013
Hong, J., 2007. Transport and the location of foreign logistics firms: The Chinese experience. Transportation Research Part A: Policy and Practice, 41(6), pp.597-609. https://doi.org/10.1016/j.tra.2006.11.004
Indonesia. Kantor Statistik Propinsi Nusa Tenggara Barat. 1996, Produk domestik regional bruto (PDRB) Propinsi Nusa Tenggara Barat per kabupaten = Gross regional domestic product (GRDP) of West Nusa Tenggara Province by regencies
Intelligence, T., 2020. The Agility Emerging Markets Logistics index 2020. Agility Emerging Marketing Logistics. Available from Internet: https://logisticsinsights.agility.com/wpcontent/uploads/2020/02/Agility-emerging-Markets-Logistics-Index-2020.pdf
Johnson, S., Larson, W., Papageorgiou, C. and Subramanian, A., 2013. Is newer better? Penn World Table revisions and their impact on growth estimates. Journal of Monetary Economics, 60(2), pp.255-274. https://doi.org/10.1016/j.jmoneco.2012.10.022
Jones, C.I., 2011. Intermediate goods and weak links in the theory of economic development. American Economic Journal: Macroeconomics, 3(2), pp.1-28. https://doi.org/10.1257/mac.3.2.1
Jones, C.I., 2016. The facts of economic growth. In Handbook of macroeconomics (Vol. 2, pp. 3-69). Elsevier. https://doi.org/10.1016/bs.hesmac.2016.03.002
Khadaroo, A.J. and Seetanah, B., 2010. Transport infrastructure and foreign direct investment. Journal of International Development: The Journal of the Development Studies Association, 22(1), pp.103-123. https://doi.org/10.1002/jid.1506
King, R.G. and Levine, R., 1993. Finance and growth: Schumpeter might be right. The quarterly journal of economics, 108(3), pp.717-737. https://doi.org/10.2307/2118406
Lambert, D., Stock, J.R., Ellram, L.M. and Grant, D., 2006. Fundamentals of Logistics Management: First European Edition. McGraw-Hill.
Lean, H.H., Huang, W. and Hong, J., 2014. Logistics and economic development: Experience from China. Transport Policy, 32, pp.96-104. https://doi.org/10.1016/j.tranpol.2014.01.003
Lu, C.S. and Yang, C.C., 2006. Comparison of investment preferences for international logistics zones in Kaohsiung, Hong Kong, and Shanghai ports from a Taiwanese manufacturer's perspective. Transportation journal, 45(1), pp.30-51. https://doi.org/10.2307/20713624
Masoud Rahiminezhad Galankashi and Syed Ahmad Helmi (2016) ‘Assessment of hybrid Lean-Agile (Leagile) supply chain strategies’, Journal of Manufacturing Technology Management, 27(4), pp. 470–482. https://doi.org/10.1108/JMTM-08-2015-0069
Mayer, T. and Zignago, S., 2011. Notes on CEPII’s distances measures: The GeoDist database. https://doi.org/10.2139/ssrn.1994531
Michael H. Hugos (2018) Essentials of Supply Chain Management. Hoboken: Wiley (Essentials Series). https://doi.org/10.1002/9781119464495
Neely, A., Gregory, M. and Platts, K., 1995. Performance measurement system design: a literature review and research agenda. International journal of operations & production management, 15(4), pp.80-116. https://doi.org/10.1108/01443579510083622
OECD/WTO. 2013. Aid for trade and value chains in transport and logistics. World Trade Organisation, Geneva.
Pantelidis, P. and Nikolopoulos, E., 2008. FDI attractiveness in Greece. International Advances in Economic Research, 14, pp.90-100. https://doi.org/10.1007/s11294-007-9106-y
Park, J.S. and Seo, Y.J., 2016. The impact of seaports on the regional economies in South Korea: Panel evidence from the augmented Solow model. Transportation Research Part E: Logistics and Transportation Review, 85, pp.107-119. https://doi.org/10.1016/j.tre.2015.11.009
Pradhan, R.P., Norman, N.R., Badir, Y. and Samadhan, B., 2013. Transport infrastructure, foreign direct investment and economic growth interactions in India: the ARDL bounds testing approach. Procedia-social and behavioral sciences, 104, pp.914-921. https://doi.org/10.1016/j.sbspro.2013.11.186
Portugal-Perez, A. and Wilson, J.S. 2012. Export performance and trade facilitation reform: hard and soft infrastructure. World Development, 40, 1295-1307. https://doi.org/10.1016/j.worlddev.2011.12.002
Rahiminezhad Galankashi, M. and Mokhatab Rafiei, F., 2022. Financial performance measurement of supply chains: a review. International journal of productivity and performance management, 71(5), pp.1674-1707. https://doi.org/10.1108/IJPPM-11-2019-0533
Rahiminezhad Galankashi, M., Helmi, S.A., Abdul Rahim, A.R. and Rafiei, F.M., 2019. Agility assessment in manufacturing companies. Benchmarking: An International Journal, 26(7), pp.2081-2104. https://doi.org/10.1108/BIJ-10-2018-0328
Roller, L., (2001). Telecommunications infrastructure and economic development: A simultaneous approach. American Economic Review, pp.909-923. https://doi.org/10.1257/aer.91.4.909
Romer, P.M., 1989. Human capital and growth: Theory and evidence. https://doi.org/10.3386/w3173
Smith, A., 1776. An inquiry into the nature and causes of the wealth of nations: Volume One. London: printed for W. Strahan; and T. Cadell, 1776. https://doi.org/10.1093/oseo/instance.00043218
Schwab, K., 2019, October. The global competitiveness report 2019. World Economic Forum.
Seferlis, P. and Giannelos, N.F., 2004. A two-layered optimisation-based control strategy for multi-echelon supply chain networks. Computers & Chemical Engineering, 28(5), pp.799-809. https://doi.org/10.1016/j.compchemeng.2004.02.022
Seiler, A., 2016. Measuring performance in supply chain networks. University of Salford (United Kingdom).
Sezer, S. and Abasiz, T., 2017. The impact of logistics industry on economic growth: An application in OECD countries. Eurasian Journal of Social Sciences, 5(1), pp.11-23. https://doi.org/10.15604/ejss.2017.05.01.002
Shan, J., Yu, M. and Lee, C.Y., 2014. An empirical investigation of the seaport’s economic impact: Evidence from major ports in China. Transportation Research Part E: Logistics and Transportation Review, 69, pp.41-53. https://doi.org/10.1016/j.tre.2014.05.010
Shepherd, B., 2011. Logistics costs and competitiveness: measurement and trade policy applications. https://doi.org/10.1596/26724
Škrinjar, R., Bosilj‐Vukšić, V. and Indihar‐Štemberger, M., 2008. The impact of business process orientation on financial and non‐financial performance. Business process management journal, 14(5), pp.738-754. https://doi.org/10.1108/14637150810903084
Stock, J.H. and Watson, M.W., 2003. Introduction to econometrics (Vol. 104). Boston: Addison Wesley.
Stock, J.R. and Lambert, D.M., 2001. Strategic logistics management (Vol. 4). Boston, MA: McGraw-Hill/Irwin.
Talley, W.K., Ng, M. and Marsillac, E., 2014. Port service chains and port performance evaluation. Transportation Research Part E: Logistics and Transportation Review, 69, pp.236-247. https://doi.org/10.1016/j.tre.2014.05.008
Tangen, S., 2004. Performance measurement: from philosophy to practice. International journal of productivity and performance management, 53(8), pp.726-737. https://doi.org/10.1108/17410400410569134
Thirumalai, S. and Sinha, K.K., 2005. Customer satisfaction with order fulfillment in retail supply chains: implications of product type in electronic B2C transactions. Journal of Operations Management, 23(3-4), pp.291-303. https://doi.org/10.1016/j.jom.2004.10.015
Vilko, J., Karandassov, B. and Myller, E., 2011. Logistic infrastructure and its effects on economic development. China-USA Business Review, 10(11).
Downloads
Published
How to Cite
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
