UNVEILING MACRO-LOGISTICS COMPETITIVENESS: ANALYSIS  OF LOGISTICS COSTS, GDP, AND THE LPI

Paitoon Varadejsatitwong; Ruth Banomyong; Puthipong Julagasigorn; Huay Ling Tay; Siraphob Suwannakes

Proceedings of ICLT 2024

UNVEILING MACRO-LOGISTICS COMPETITIVENESS: ANALYSIS OF LOGISTICS COSTS, GDP, AND THE LPI

Paitoon Varadejsatitwong; Ruth Banomyong; Puthipong Julagasigorn; Huay Ling Tay; Siraphob Suwannakes

Center of Excellence in Connectivity, Thammasat Business School, Thammasat University, Thailand; Center of Excellence in Connectivity, Thammasat Business School, Thammasat University, Thailand; International College for Sustainability Studies, Srinakharinwirot University, Thailand; School of Business, Singapore University of Social Sciences, Singapore; Hospitality and Tourism Management Department, International College for Sustainability Studies, Srinakharinwirot University, Thailand

International Conference on Logistics & Transport 2024, Seoul, South Korea, pp. 155-162

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Abstract

Purpose: This study explores macro-logistics competitiveness by investigating how the ratios of National Logistics Costs (NLC) to Gross Domestic Product (GDP) in countries impact their Logistics Performance Index (LPI) scores. The study defines four logistics cost components: transportation, warehousing, inventory carrying, and administration. Delaney’s calculation method is employed to ensure consistency in calculations and to enable a comparative analysis of the ratios across all countries. Design/methodology/approach: The analysis of logistics efficiency and its economic implications was conducted in two distinct parts: (1) classifying countries into four income categories and (2) conducting a regression analysis to explore the relationship between NLC, expressed as a percentage of GDP, and the LPI. Data were obtained from the National Accounts tables. Findings: The relationship between NLC, as a percentage of GDP, and the LPI varies significantly across countries at different income levels. The correlation results between the six dimensions of the LPI and NLC for 73 countries showed a moderate negative correlation coefficient across all factors, indicating that improvements in logistics performance are generally associated with lower logistics costs. Thus, countries with higher LPI scores tend to have lower NLC relative to GDP. Research Limitation/Implications: The study’s calculation approach utilizes data from National Accounts, making it cost-effective and time-saving compared to traditional data collection methods. This approach should be valuable for policymakers and academics in the field of macro-logistics, as it can guide their assessment of national macro-logistics competitiveness. Originality/value: This study employed an identical calculation method and data source, enabling a robust and novel comparison of macro-logistics competitiveness across a broader range of economies. A regression analysis of the ratios of NLC to GDP and the LPI scores identifi

Keywords

National logistics cost; Logistics Performance Index Article classification: research paper

Citation

Paitoon Varadejsatitwong; Ruth Banomyong; Puthipong Julagasigorn; Huay Ling Tay; Siraphob Suwannakes (2024). UNVEILING MACRO-LOGISTICS COMPETITIVENESS: ANALYSIS OF LOGISTICS COSTS, GDP, AND THE LPI. Proceedings of the International Conference on Logistics & Transport (ICLT 2024), Seoul, South Korea, pp. 155-162.