IDEAS home Printed from https://ideas.repec.org/a/sae/jfasei/v4y2022i2p195-207.html

Understanding National Level Logistics Costs: Methodological Approach

Author

Listed:
  • Satyendra Nath Chakrabartty

Abstract

Logistics cost (LC) estimated by different methods are not comparable since cost components differ across countries and are not properly standardised, non-availability of comprehensive reliable data on LC and presence of number of qualitative components. No method of measuring LC has considered probability distributions of the components/dimensions. After review of methods to estimate LC, the article proposes to transfer the j -th component score emerging from questionnaire-based approach to a proposed score ( P j ) so that 0 ≤ P j ≤ 100 and follows normal distribution. Logistics cost index (LCI) of i -th country is taken as multiplicative aggregation of ratios of P j at the current period and base period of all components. The index avoids perfect substitutability of arithmetic aggregation, and it satisfies the desired properties of an index including time-reversal test and formation of chain-indices, and enables meaningful comparisons across time and space, better ranking and classifying the countries, identification of critical dimensions/components requiring policy changes, drawing path of decline or increase of LCI over time for a country, computing mean LCI for a group of countries and LCI at Global level, and undertaking statistical analysis under parametric set up. Future investigations suggested reflecting properties of the proposed LCI along with empirical relationships of sector-wise LCI and economic development. JEL Codes: D57, E23, P44

Suggested Citation

  • Satyendra Nath Chakrabartty, 2022. "Understanding National Level Logistics Costs: Methodological Approach," Journal of Asian Economic Integration, , vol. 4(2), pages 195-207, September.
    • Handle: RePEc:sae:jfasei:v:4:y:2022:i:2:p:195-207
    DOI: 10.1177/26316846221107419
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/26316846221107419
    Download Restriction: no
    File URL: https://libkey.io/10.1177/26316846221107419?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Sugeng Santoso & R. Nurhidayat & Gustofan Mahmud & Abdul Mujib Arijuddin, 2021. "Measuring the Total Logistics Costs at the Macro Level: A Study of Indonesia," Logistics, MDPI, vol. 5(4), pages 1-19, October.
    2. Karri Rantasila & Lauri Ojala, 2012. "Measurement of National-Level Logistics Costs and Performance," International Transport Forum Discussion Papers 2012/4, OECD Publishing.
    3. Hock-Eam Lim, 2008. "The Use of Different Happiness Rating Scales: Bias and Comparison Problem?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 87(2), pages 259-267, June.
    4. Sanjib Pohit & Devendra B. Gupta & Devender Pratap & Sameer Malik, 2019. "Survey of Literature on Measuring Logistics Cost: A Developing Country’s Perspective," Journal of Asian Economic Integration, , vol. 1(2), pages 260-282, September.
    5. Pohit, Sanjib & Gupta, Devendra & Malik, Sameer & Pratap, Devender, 2019. "Survey of literature on Measuring Logistics cost: A Developing Country’s Perspective," MPRA Paper 94607, University Library of Munich, Germany.
    6. Amal Ray, 2008. "Measurement of social development: an international comparison," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 86(1), pages 1-46, March.
    7. D. J. Hand, 1996. "Statistics and the Theory of Measurement," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 159(3), pages 445-473, May.
    8. Salvatore Greco & Alessio Ishizaka & Menelaos Tasiou & Gianpiero Torrisi, 2019. "On the Methodological Framework of Composite Indices: A Review of the Issues of Weighting, Aggregation, and Robustness," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 141(1), pages 61-94, January.
    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. Hoang Nguyen & Tu Thanh Phan & Do Thi Binh, 2026. "Unlocking logistics efficiency in transitional economies: the impact of economic, social and institutional factors on provincial logistics costs in Vietnam," Economic Change and Restructuring, Springer, vol. 59(2), pages 1-30, April.
    2. Sugeng Santoso & R. Nurhidayat & Gustofan Mahmud & Abdul Mujib Arijuddin, 2021. "Measuring the Total Logistics Costs at the Macro Level: A Study of Indonesia," Logistics, MDPI, vol. 5(4), pages 1-19, October.
    3. Aleksandra Maksimovska & Aleksandar Stojkov, 2019. "Composite Indicator of Social Responsiveness of Local Governments: An Empirical Mapping of the Networked Community Governance Paradigm," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 144(2), pages 669-706, July.
    4. Greco, Salvatore & Ishizaka, Alessio & Tasiou, Menelaos & Torrisi, Gianpiero, 2018. "σ-µ efficiency analysis: A new methodology for evaluating units through composite indices," MPRA Paper 83569, University Library of Munich, Germany.
    5. Greco, Salvatore & Ishizaka, Alessio & Tasiou, Menelaos & Torrisi, Gianpiero, 2019. "Sigma-Mu efficiency analysis: A methodology for evaluating units through composite indicators," European Journal of Operational Research, Elsevier, vol. 278(3), pages 942-960.
    6. Sayel Basel & K. U. Gopakumar & R. Prabhakara Rao, 2020. "Broad-based index for measurement of development," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 22(1), pages 182-206, June.
    7. Arbona, Alexei & Giménez, Víctor & López-Estrada, Sebastián & Prior, Diego, 2022. "Efficiency and quality in Colombian education: An application of the metafrontier Malmquist-Luenberger productivity index," Socio-Economic Planning Sciences, Elsevier, vol. 79(C).
    8. Banomyong, Ruth & Grant, David B. & Varadejsatitwong, Paitoon & Julagasigorn, Puthipong, 2022. "Developing and validating a national logistics cost in Thailand," Transport Policy, Elsevier, vol. 124(C), pages 5-19.
    9. Dripto Mukhopadhyay & Sanjib Pohit & Devendra B. Gupta, 2023. "Measuring Export Related Port Logistics in India: An Attempt to Rank Major Ports," Foreign Trade Review, , vol. 58(3), pages 401-411, August.
    10. Raffaele Lagravinese & Paolo Liberati & Giuliano Resce, 2020. "Measuring Health Inequality in US: A Composite Index Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 147(3), pages 921-946, February.
    11. Satyendra Nath Chakrabartty & Deepankar Sinha, 2022. "A Single Measure of Overall Export Performance," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 16(3-4), pages 278-308, August.
    12. Driss El Kadiri Boutchich, 2024. "Tourism performance evaluation and analysis from composite index and slack based method," OPSEARCH, Springer;Operational Research Society of India, vol. 61(2), pages 501-523, June.
    13. Biggeri, Mario & Clark, David A. & Ferrannini, Andrea & Mauro, Vincenzo, 2019. "Tracking the SDGs in an ‘integrated’ manner: A proposal for a new index to capture synergies and trade-offs between and within goals," World Development, Elsevier, vol. 122(C), pages 628-647.
    14. Giovanni Bernardo & Irene Brunetti & Mehmet Pinar & Thanasis Stengos, 2021. "Measuring the presence of organized crime across Italian provinces: a sensitivity analysis," European Journal of Law and Economics, Springer, vol. 51(1), pages 31-95, February.
    15. Olga Bogdanov & Veljko Jeremiæ & Sandra Jednak & Mladen Èudanov, 2019. "Scrutinizing the Smart City Index: a multivariate statistical approach," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 37(2), pages 777-799.
    16. Mariateresa Ciommi & Chiara Gigliarano & Francesco M. Chelli & Mauro Gallegati, 2022. "It is the Total that Does [Not] Make the Sum: Nature, Economy and Society in the Equitable and Sustainable Well-Being of the Italian Provinces," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 161(2), pages 491-522, June.
    17. Rajko Tomaš, 2022. "Measurement of the Concentration of Potential Quality of Life in Local Communities," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 163(1), pages 79-109, August.
    18. Mehmet Şahin, 2024. "Ensemble decision making for logistics center location," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(12), pages 30527-30561, December.
    19. Martín-García, Jaime & Gómez-Limón, José A. & Arriaza, Manuel, 2024. "Conversion to organic farming: Does it change the economic and environmental performance of fruit farms?," Ecological Economics, Elsevier, vol. 220(C).
    20. Zakariah, Sahidah & Pyeman, Jaafar, 2013. "Current State and Issues of Logistics Cost Accounting and Management in Malaysia," MPRA Paper 46605, University Library of Munich, Germany.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • P44 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - National Income, Product, and Expenditure; Money; Inflation

    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:sae:jfasei:v:4:y:2022:i:2:p:195-207. 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: SAGE Publications (email available below). General contact details of provider: .

    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.