IDEAS home Printed from https://ideas.repec.org/a/ris/jecdev/0012.html
   My bibliography  Save this article

Logistics Performance, Export, Agricultural, Manufacturing, and Aggregate Economic Growth: A Focus on Sectoral Perspectives

Author

Listed:
  • Shikur, Zewdie Habte

    (Wolaita Sodo University, Ethiopia)

Abstract

The studies on the impact of logistics performance on economic growth remain inconclusive. The earlier few studies examined the links based on the presumption of aggregate economic growth, arguing each economic sector reacts uniformly to logistics infrastructure development. However, the extent of each logistics performance impact may not necessarily remain the same across sectors. Therefore, this study examines the effect of each logistics performance dimension on aggregate economic growth, agricultural growth, and manufacturing growth in emerging countries using the Generalized Method of Moments (GMM). The study also compares each dimension of logistics performance between African and other emerging countries using descriptive statistics. In terms of each logistics performance dimension, the results showed that other developing nations owned better than African nations. According to the study, export is significantly and positively correlated with overall and sectoral economic growth in developing nations. The findings reveal that shipment, customs clearance, tracking and tracing, logistics services, and infrastructure have a positive impact on agricultural growth, manufacturing growth, and aggregate economic growth. However, the magnitude and level of significance of the coefficients of each dimension of logistics performance vary across sectors. Logistics infrastructures are more important for manufacturing growth and aggregate economic growth than for agricultural growth. The heterogeneity of the study's findings suggests that the importance and size of the relationship between economic growth and logistics performance depend on sectoral policies, economic policies, and other contexts. Therefore, investments in logistics services could help accelerate agricultural growth, manufacturing growth, and aggregate economic growth.

Suggested Citation

  • Shikur, Zewdie Habte, 2022. "Logistics Performance, Export, Agricultural, Manufacturing, and Aggregate Economic Growth: A Focus on Sectoral Perspectives," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 47(3), pages 107-123, September.
    • Handle: RePEc:ris:jecdev:0012
    as

    Download full text from publisher

    File URL: https://jed.cau.ac.kr/archives/47-3/47-3-5.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Claudio Ferrari & Marco Percoco & Andrea Tedeschi, 2010. "Ports And Local Development: Evidence From Italy," Articles, International Journal of Transport Economics, vol. 37(1).
    2. Hong, Junjie, 2007. "Transport and the location of foreign logistics firms: The Chinese experience," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(6), pages 597-609, July.
    3. Lili Song & Jianing Mi, 2016. "Port infrastructure and regional economic growth in China: a Granger causality analysis," Maritime Policy & Management, Taylor & Francis Journals, vol. 43(4), pages 456-468, May.
    4. Bottasso, Anna & Conti, Maurizio & Ferrari, Claudio & Tei, Alessio, 2014. "Ports and regional development: A spatial analysis on a panel of European regions," Transportation Research Part A: Policy and Practice, Elsevier, vol. 65(C), pages 44-55.
    5. Pinar Hayaloglu, 2015. "The Impact of Developments in the Logistics Sector on Economic Growth: The Case of OECD Countries," International Journal of Economics and Financial Issues, Econjournals, vol. 5(2), pages 523-530.
    6. Mario Holzner & Florin Peci, 2011. "The Impact of Customs Procedures on Business Performance: Evidence from Kosovo," wiiw Working Papers 76, The Vienna Institute for International Economic Studies, wiiw.
    7. Ziaul Haque Munim & Hans-Joachim Schramm, 2018. "The impacts of port infrastructure and logistics performance on economic growth: the mediating role of seaborne trade," Journal of Shipping and Trade, Springer, vol. 3(1), pages 1-19, December.
    8. Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-1426, November.
    9. Nijkamp, Peter, 1986. "Infrastructure and Regional Development: A Multidimensional Policy Analysis," Empirical Economics, Springer, vol. 11(1), pages 1-21.
    10. Baldwin, John R. Dixon, Jay, 2008. "Infrastructure Capital: What Is It? Where Is It? How Much of It Is There?," The Canadian Productivity Review 2008016e, Statistics Canada, Economic Analysis Division.
    11. Zhaofang Chu, 2012. "Logistics and economic growth: a panel data approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 49(1), pages 87-102, August.
    12. Badalyan, Gohar & Herzfeld, Thomas & Rajcaniova, Miroslava, 2014. "Transport infrastructure and economic growth: Panel data approach for Armenia, Georgia and Turkey," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 17(2), pages 22-31.
    13. Sevgi Sezer & Tezcan Abasiz, 2017. "The Impact Of Logistics Industry On Economic Growth: An Application In Oecd Countries," Eurasian Journal of Social Sciences, Eurasian Publications, vol. 5(1), pages 11-23.
    14. Joseph Berechman & Dilruba Ozmen & Kaan Ozbay, 2006. "Empirical analysis of transportation investment and economic development at state, county and municipality levels," Transportation, Springer, vol. 33(6), pages 537-551, November.
    15. Frankel, Ernst G., 1989. "Shipping and its role in economic development," Marine Policy, Elsevier, vol. 13(1), pages 22-42, January.
    16. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    17. Edward Nketiah-Amponsah, 2009. "Public spending and economic growth: evidence from Ghana (1970-2004)," Development Southern Africa, Taylor & Francis Journals, vol. 26(3), pages 477-497.
    18. Hooi Lean, Hooi & Huang, Wei & Hong, Junjie, 2014. "Logistics and economic development: Experience from China," Transport Policy, Elsevier, vol. 32(C), pages 96-104.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Baiqing Sun & Ramadhan Kauzen, 2023. "The Impact of Port Infrastructure and Economic Growth in Tanzania: Adopting a Structural Equation Modeling Approach," SAGE Open, , vol. 13(1), pages 21582440221, January.
    2. Saidi, Samir & Mani, Venkatesh & Mefteh, Haifa & Shahbaz, Muhammad & Akhtar, Pervaiz, 2020. "Dynamic linkages between transport, logistics, foreign direct Investment, and economic growth: Empirical evidence from developing countries," Transportation Research Part A: Policy and Practice, Elsevier, vol. 141(C), pages 277-293.
    3. Qi, Guanqiu & Shi, Wenming & Lin, Kun-Chin & Yuen, Kum Fai & Xiao, Yi, 2020. "Spatial spillover effects of logistics infrastructure on regional development: Evidence from China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 135(C), pages 96-114.
    4. Elena Cigu & Daniela Tatiana Agheorghiesei & Anca Florentina Gavriluță (Vatamanu) & Elena Toader, 2018. "Transport Infrastructure Development, Public Performance and Long-Run Economic Growth: A Case Study for the Eu-28 Countries," Sustainability, MDPI, vol. 11(1), pages 1-22, December.
    5. Feiyan Han & Daming Wang & Bo Li, 2019. "Spillover Effects of Ports and Logistics Development on Economic Power: Evidence from the Chinese BTH Regions," Sustainability, MDPI, vol. 11(16), pages 1-17, August.
    6. Ziaul Haque Munim & Hans-Joachim Schramm, 2018. "The impacts of port infrastructure and logistics performance on economic growth: the mediating role of seaborne trade," Journal of Shipping and Trade, Springer, vol. 3(1), pages 1-19, December.
    7. Yanfeng Liu & Miao Su & Jinjing Zhao & Sally Martin & Kum Fai Yuen & Choong-Bae Lee, 2023. "The determinants of China’s outward foreign direct investment: a vector error correction model analysis of coastal and landlocked countries," Economic Change and Restructuring, Springer, vol. 56(1), pages 29-56, February.
    8. Zhao, Deng & Zhen-fu, Li & Yu-tao, Zhou & Xiao, Chen & Shan-shan, Liang, 2020. "Measurement and spatial spillover effects of port comprehensive strength: Empirical evidence from China," Transport Policy, Elsevier, vol. 99(C), pages 288-298.
    9. Sevgi Sezer & Tezcan Abasiz, 2017. "The Impact Of Logistics Industry On Economic Growth: An Application In Oecd Countries," Eurasian Journal of Social Sciences, Eurasian Publications, vol. 5(1), pages 11-23.
    10. Özer, Mustafa & Canbay, Şerif & Kırca, Mustafa, 2021. "The impact of container transport on economic growth in Turkey: An ARDL bounds testing approach," Research in Transportation Economics, Elsevier, vol. 88(C).
    11. Alassane D. Yeo & Aimin Deng & Todine Y. Nadiedjoa, 2020. "The Effect of Infrastructure and Logistics Performance on Economic Performance: The Mediation Role of International Trade," Foreign Trade Review, , vol. 55(4), pages 450-465, November.
    12. Chengete Chakamera & Noleen M. Pisa, 2021. "Associations Between Logistics and Economic Growth in Africa," South African Journal of Economics, Economic Society of South Africa, vol. 89(3), pages 417-438, September.
    13. Wu, Zhen & Woo, Su-Han & Lai, Po-Lin & Chen, Xiaoyi, 2022. "The economic impact of inland ports on regional development: Evidence from the Yangtze River region," Transport Policy, Elsevier, vol. 127(C), pages 80-91.
    14. W. Matekenya & R. Ncwadi, 2022. "The impact of maritime transport financing on total trade in South Africa," Journal of Shipping and Trade, Springer, vol. 7(1), pages 1-17, December.
    15. Song, Lili & van Geenhuizen, Marina, 2014. "Port infrastructure investment and regional economic growth in China: Panel evidence in port regions and provinces," Transport Policy, Elsevier, vol. 36(C), pages 173-183.
    16. Carlucci, Fabio & Cirà, Andrea & Ioppolo, Giuseppe & Massari, Stefania & Siviero, Lucio, 2018. "Logistics and land use planning: An application of the ACIT indicator in European port regions," Land Use Policy, Elsevier, vol. 75(C), pages 60-69.
    17. Tang, Chor Foon & Abosedra, Salah, 2019. "Logistics performance, exports, and growth: Evidence from Asian economies," Research in Transportation Economics, Elsevier, vol. 78(C).
    18. Kee-hung Lai & Yu Pang & Christina W. Y. Wong & Y. H. Venus Lun & Y. N. Eppie Ng, 2019. "Are trade and transport logistics activities mutually reinforcing? Some empirical evidences from ASEAN countries," Journal of Shipping and Trade, Springer, vol. 4(1), pages 1-17, December.
    19. Mehmet Aldonat Beyzatlar & Hakan Yetkiner, 2017. "Convergence in transportation measures across the EU-15," Transportation, Springer, vol. 44(5), pages 927-940, September.
    20. Alexandra Fratila (Adam) & Ioana Andrada Gavril (Moldovan) & Sorin Cristian Nita & Andrei Hrebenciuc, 2021. "The Importance of Maritime Transport for Economic Growth in the European Union: A Panel Data Analysis," Sustainability, MDPI, vol. 13(14), pages 1-23, July.

    More about this item

    Keywords

    Logistics Performance Dimensions; Export; Agricultural Growth; Manufacturing Growth; Aggregate Economic Growth; Developing Countries;
    All these keywords.

    JEL classification:

    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • F69 - International Economics - - Economic Impacts of Globalization - - - Other
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O49 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:jecdev:0012. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tram Nguyen (email available below). General contact details of provider: https://edirc.repec.org/data/eccaukr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.