Exploring the Mediation Effect of Logistics Performance on Economic Growth

Abstract

The research investigates how global competitiveness influences logistics performance and examines how these two factors might influence economic growth of countries with different income levels. Data used in this paper were collected from World Bank, and, and World Economic Forum and cover 5 years, namely 2007, 2010, 2012, 2014 and 2016. The measurement of the major concepts in the hypothesized model was validated by using multiple panel regression based on fixed effect model taking static panel analysis. Stata 15 has been used to perform the statistical analysis. Results from this research indicate that there is a positive correlation between logistics performance and global competitiveness in all countries under investigation regardless of income disparity; but a mediation effect of LPI between GCI and economic growth rate was only validated in countries with upper income, middle income but not in lower income countries. Besides, positive correlation between economic growth and logistics performance only existed in middle and high income countries. This study emphasizes a holistic and dynamic framework relating logistics performance, export, and global competitiveness to a nation’s economic growth and findings from this study have both theoretical and practical implications for scholars, government analysts, and policymakers as well.