Comparative impact of logistics performance index, ease of doing business and logistics cost on economic development: a fuzzy QCA analysis
Abstract
This research papers aims to evaluate the impact of two major institutional indexes logistics performance index (LPI) and ease of doing business (EODB) along with logistics cost (LC) on the economic development (Gross domestic product – GDP per capita). The variables selected for the research study provides the comprehensive impact and forms the core of the economy for any country. Top seven economies of the world (China, France, Germany, India, Japan, United Kingdom and USA) along with Czech Republic, Singapore and Slovenia have been selected for this analysis. Mid-sized Economies of Czech Republic, Singapore, Slovenia have been selected for the regional balance of Asia and Europe and for cooperative results. A preliminary analysis of Pearson correlation analysis and detailed fuzzy qualitative comparative analysis have been opted for the study. The results illustrate that LPI is the core component for displaying the positive results on economic development. LC and EODB have displayed mixed results and will be studied in future research for identifying their impact on economic development. Future research will incorporate indexes such as global competitive index, innovation index for the evaluation of the combined impact on economic development.
Keyword : economic development, GDP, LPI, ease of doing business, logistics cost, fuzzy QCA
How to Cite
Saini, M., & Hrušecká, D. (2021). Comparative impact of logistics performance index, ease of doing business and logistics cost on economic development: a fuzzy QCA analysis. Journal of Business Economics and Management, 22(6), 1577-1592. https://doi.org/10.3846/jbem.2021.15586
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Can, B. E., Dinç, D. T., & Gökmen, A. (2021). The issue of logistics and its correlation to economic growth in Turkey: An empirical application. International Journal of Applied Logistics (IJAL), 11(1), 66–80. https://doi.org/10.4018/IJAL.2021010105
Civelek, M. E., Uca, N., & Çemberci, M. (2015). The mediator effect of logistics performance index on the relation between global competitiveness index and gross domestic product. European Scientific Journal, 11(13), 368–375.
Corcoran, A., & Gillanders, R. (2015). Foreign direct investment and the ease of doing business. Review of World Economics, 151(1), 103–126. https://doi.org/10.1007/s10290-014-0194-5
Dang, V. L., & Yeo, G. T. (2018). Weighing the key factors to improve Vietnam’s logistics system. The Asian Journal of Shipping and Logistics, 34(4), 308–316. https://doi.org/10.1016/j.ajsl.2018.12.004
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Forkmann, S., Henneberg, S. C., Witell, L., & Kindström, D. (2017). Driver configurations for successful service infusion. Journal of Service Research, 20(3), 275–291. https://doi.org/10.1177/1094670517706160
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Kalyvas, A. N., & Mamatzakis, E. (2014). Does business regulation matter for banks in the European Union? Journal of International Financial Markets, Institutions and Money, 32(1), 278–324. https://doi.org/10.1016/j.intfin.2014.06.007
Khan, S. A. R., & Qianli, D. (2017). Does national scale economic and environmental indicators spur logistics performance? Evidence from UK. Environmental Science and Pollution Research, 24(34), 26692–26705. https://doi.org/10.1007/s11356-017-0222-9
Kourouthanassis, P. E., Mikalef, P., Pappas, I. O., & Kostagiolas, P. (2017). Explaining travellers online information satisfaction: A complexity theory approach on information needs, barriers, sources and personal characteristics. Information & Management, 54(6), 814–824. https://doi.org/10.1016/j.im.2017.03.004
Kraus, S., Ribeiro-Soriano, D., & Schüssler, M. (2018). Fuzzy-set qualitative comparative analysis (fsQCA) in entrepreneurship and innovation research–the rise of a method. International Entrepreneurship and Management Journal, 14(1), 15–33. https://doi.org/10.1007/s11365-017-0461-8
Lampropoulos, G., Siakas, K., & Anastasiadis, T. (2019). Internet of things in the context of industry 4.0: An overview. International Journal of Entrepreneurial Knowledge, 7(1), 4–19. https://doi.org/10.2478/ijek-2019-0001
Liu, Y., Mezei, J., Kostakos, V., & Li, H. (2017). Applying configurational analysis to IS behavioural research: a methodological alternative for modelling combinatorial complexities. Information Systems Journal, 27(1), 59–89. https://doi.org/10.1111/isj.12094
Mariano, E. B., Gobbo Jr., J. A., Camioto, F. D. C., & Rebelatto, D. A. D. N. (2017). CO2 emissions and logistics performance: a composite index proposal. Journal of Cleaner Production, 163, 166–178. https://doi.org/10.1016/j.jclepro.2016.05.084
Martí, L., Puertas, R., & García, L. (2014). The importance of the Logistics Performance Index in international trade. Applied Economics, 46(24), 2982–2992. https://doi.org/10.1080/00036846.2014.916394
Milenković, N., Kalaš, B., Mirović, V., & Andrašić, J. (2020). The impact of macroeconomic determinants and tax form on inflation in selected Balkan countries. Serbian Journal of Management, 15(1), 7–18. https://doi.org/10.5937/sjm15-16685
Mladenović, S. S., Mladenović, I., & Ćuzović, D. (2019). Distributive trade and economic growth: EU28 evidence for the period 2008–2015. Journal of Business Economics and Management, 20(3), 489–506. https://doi.org/10.3846/jbem.2019.9857
Morris, R., & Aziz, A. (2011). Ease of doing business and FDI inflow to Sub-Saharan Africa and Asian countries. Cross Cultural Management: An International Journal, 18(4), 400–411. https://doi.org/10.1108/13527601111179483
Naudé, W. (2010). Entrepreneurship, developing countries, and development economics: New approaches and insights. Small Business Economics, 34, 1–12. https://doi.org/10.1007/s11187-009-9198-2
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Ragin, C. C. (2000). Fuzzy-set social science. University of Chicago Press. https://doi.org/10.1017/S0022381607080309
Rantasila, K., & Ojala, L. (2015). National-level logistics costs: An overview of extant research. International Journal of Logistics Research and Applications, 18(4), 313–324. https://doi.org/10.1080/13675567.2015.1016413
Rogge, N., & Archer, G. (2021). Measuring and analyzing country change in establishing ease of doing business using a revised version of World Bank‘s Ease of Doing Business Index. European Journal of Operational Research, 290(1), 373–385. https://doi.org/10.1016/j.ejor.2020.07.065
Ruzekova, V., Kittova, Z., & Steinhauser, D. (2020). Export performance as a measurement of competitiveness. Journal of Competitiveness, 12(1), 145–160. https://doi.org/10.7441/joc.2020.01.09
Schneider, M. R., Schulze-Bentrop, C., & Paunescu, M. (2010). Mapping the institutional capital of high-tech firms: A fuzzy-set analysis of capitalist variety and export performance. Journal of International Business Studies, 41(2), 246–266. https://doi.org/10.1057/jibs.2009.36
Skarmeas, D., Leonidou, C. N., & Saridakis, C. (2014). Examining the role of CSR skepticism using fuzzy-set qualitative comparative analysis. Journal of Business Research, 67(9), 1796–1805. https://doi.org/10.1016/j.jbusres.2013.12.010
Solakivi, T., Ojala, L., Töyli, J., Hälinen, H.-M., Lorentz, H., Rantasila, K., & Naula, T. (2009). Finland State of Logistics 2009. Ministry of Transport and Communications Finland, Helsinki. Retrieved August 18, 2020, from https://trid.trb.org/view.aspx?id=907192
Sriyana, J., & Afandi, A. (2020). Asymmetric effects of trade openness on economic growth in selected ASEAN countries. E&M Economics and Management, 23(2), 66–82. https://doi.org/10.15240/tul/001/2020-2-005
Su, S., & Ke, J. (2017). National logistics performance benchmarking: A process-based approach using World Bank Logistics Performance Index database. Journal of Supply Chain and Operations Management, 15(1), 55–78.
Tvaronavičienė, M., & Ginevičius, R. (2003) Analysis of foreign direct investments and its impact on restructuring of Lithuanian economy. Journal of Business Economics and Management, 4(3), 184–197. https://doi.org/10.3846/16111699.2003.9636053
Virglerová, Z., Conte, F., Amoah, J., & Massaro, M. R. (2020). The perception of legal risk and its impact on the business of SMEs. International Journal of Enterpreneurial Knowledge, 8(2), 1–13. https://doi.org/10.37335/ijek.v8i2.115
Wang, C., Kim, Y. S., & Kim, C. Y. (2021). Causality between logistics infrastructure and economic development in China. Transport Policy, 100, 49–58. https://doi.org/10.1016/j.tranpol.2020.10.005
Woodside, A. G. (2013). Moving beyond multiple regression analysis to algorithms: Calling for adoption of a paradigm shift from symmetric to asymmetric thinking in data analysis and crafting theory. Journal of Business Research, 66(4), 463–472. https://doi.org/10.1016/j.jbusres.2012.12.021
World Bank. (2014). The LPI Methodology. Retrieved October 17, 2020, from https://wb-lpi-media.s3.amazonaws.com/LPI%20Methodology.pdf
World Bank. (2018). Logistics performance Index. Retrieved February 9, 2021, from https://lpi.worldbank.org/
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Adhikary, B. K. (2011). FDI, trade openness, capital formation, and economic growth in Bangladesh: A linkage analysis. International Journal of Business and Management, 6(1), 16–28. https://doi.org/10.5539/ijbm.v6n1p16
Aldakhil, A. M., Nassani, A. A., Awan, U., Abro, M. M. Q., & Zaman, K. (2018). Determinants of green logistics in BRICS countries: an integrated supply chain model for green business. Journal of Cleaner Production, 195, 861–868. https://doi.org/10.1016/j.jclepro.2018.05.248
Ani, T. G. (2015). Effect of ease of doing business to economic growth among selected countries in Asia. Asia Pacific Journal of Multidisciplinary Research, 3(5), 139–145. http://www.apjmr.com/wp-content/uploads/2016/02/APJMR-2015-3.5.2.19.pdf
Arvis, J., Wiederer, C., Shepherd, B., Raj, A., Dairabayeva, K., & Kiiski, T. (2018). Connecting to compete 2018: Trade logistics in the global economy. The International Bank for Reconstruction and Development/The World Bank. https://doi.org/10.1596/29971
Besley, T. (2015). Law, regulation, and the business climate: The nature and influence of the World Bank Doing Business project. Journal of Economic Perspectives, 29(3), 99–120. https://doi.org/10.1257/jep.29.3.99
Bhavan, T., Xu, C., & Zhong, C. (2011). Determinants and growth effect of FDI in south Asian economies: Evidence from a panel data analysis. International Business Research, 10(1), 23–30. https://doi.org/10.5539/ibr.v4n1p43
Can, B. E., Dinç, D. T., & Gökmen, A. (2021). The issue of logistics and its correlation to economic growth in Turkey: An empirical application. International Journal of Applied Logistics (IJAL), 11(1), 66–80. https://doi.org/10.4018/IJAL.2021010105
Civelek, M. E., Uca, N., & Çemberci, M. (2015). The mediator effect of logistics performance index on the relation between global competitiveness index and gross domestic product. European Scientific Journal, 11(13), 368–375.
Corcoran, A., & Gillanders, R. (2015). Foreign direct investment and the ease of doing business. Review of World Economics, 151(1), 103–126. https://doi.org/10.1007/s10290-014-0194-5
Dang, V. L., & Yeo, G. T. (2018). Weighing the key factors to improve Vietnam’s logistics system. The Asian Journal of Shipping and Logistics, 34(4), 308–316. https://doi.org/10.1016/j.ajsl.2018.12.004
Devlin, J., & Yee, P. (2005). Trade logistics in developing countries: The case of the Middle East and North Africa. The World Economy, 28, 435–456. https://doi.org/10.1111/j.1467-9701.2005.00620.x
Ekici, Ş. Ö., Kabak, Ö., & Ülengin, F. (2016). Linking to compete: Logistics and global competitiveness interaction. Transport Policy, 48, 117–128. https://doi.org/10.1016/j.tranpol.2016.01.015
Elliot, T. (2013). Fuzzy Set qualitative comparative analysis. Research Notes: Statistics Group, UCI. https://www.socsci.uci.edu/~sgsa/docs/fsQCA_thomas_elliot.pdf
Erkan, B. (2014). The importance and determinants of logistics performance of selected countries. Journal of Emerging Issues in Economics, Finance and Banking, 3(6), 1237–1254. http://globalbizresearch.org/economics/images/files/86028_JEIEFB_Birol%20ERKAN.pdf
Faria, R. N. D., Souza, C. S. D., & Vieira, J. G. V. (2015). Evaluation of logistic performance indexes of brazil in the international trade. RAM. Revista de Administração Mackenzie, 16(1), 213–235. https://doi.org/10.1590/1678-69712015/administracao.v16n1p213-235
Fernández-Serrano, J., & Romero, I. (2014). About the interactive influence of culture and regulatory barriers on entrepreneurial activity. International Entrepreneurship and Management Journal, 10(4), 781–802. https://doi.org/10.1007/s11365-014-0296-5
Fiss, P. C. (2011). Building better causal theories: A fuzzy set approach to typologies in organization research. Academy of Management Journal, 54(2), 393–420. https://doi.org/10.5465/amj.2011.60263120
Forkmann, S., Henneberg, S. C., Witell, L., & Kindström, D. (2017). Driver configurations for successful service infusion. Journal of Service Research, 20(3), 275–291. https://doi.org/10.1177/1094670517706160
Ghosh, N., Saha, R., & Bhowmick, S. (2019). SDG index and ease of doing business in India: A sub-national study. https://www.orfonline.org/research/sdg-index-and-ease-of-doing-business-in-india-a-sub-national-study-52066/
Kalyvas, A. N., & Mamatzakis, E. (2014). Does business regulation matter for banks in the European Union? Journal of International Financial Markets, Institutions and Money, 32(1), 278–324. https://doi.org/10.1016/j.intfin.2014.06.007
Khan, S. A. R., & Qianli, D. (2017). Does national scale economic and environmental indicators spur logistics performance? Evidence from UK. Environmental Science and Pollution Research, 24(34), 26692–26705. https://doi.org/10.1007/s11356-017-0222-9
Kourouthanassis, P. E., Mikalef, P., Pappas, I. O., & Kostagiolas, P. (2017). Explaining travellers online information satisfaction: A complexity theory approach on information needs, barriers, sources and personal characteristics. Information & Management, 54(6), 814–824. https://doi.org/10.1016/j.im.2017.03.004
Kraus, S., Ribeiro-Soriano, D., & Schüssler, M. (2018). Fuzzy-set qualitative comparative analysis (fsQCA) in entrepreneurship and innovation research–the rise of a method. International Entrepreneurship and Management Journal, 14(1), 15–33. https://doi.org/10.1007/s11365-017-0461-8
Lampropoulos, G., Siakas, K., & Anastasiadis, T. (2019). Internet of things in the context of industry 4.0: An overview. International Journal of Entrepreneurial Knowledge, 7(1), 4–19. https://doi.org/10.2478/ijek-2019-0001
Liu, Y., Mezei, J., Kostakos, V., & Li, H. (2017). Applying configurational analysis to IS behavioural research: a methodological alternative for modelling combinatorial complexities. Information Systems Journal, 27(1), 59–89. https://doi.org/10.1111/isj.12094
Mariano, E. B., Gobbo Jr., J. A., Camioto, F. D. C., & Rebelatto, D. A. D. N. (2017). CO2 emissions and logistics performance: a composite index proposal. Journal of Cleaner Production, 163, 166–178. https://doi.org/10.1016/j.jclepro.2016.05.084
Martí, L., Puertas, R., & García, L. (2014). The importance of the Logistics Performance Index in international trade. Applied Economics, 46(24), 2982–2992. https://doi.org/10.1080/00036846.2014.916394
Milenković, N., Kalaš, B., Mirović, V., & Andrašić, J. (2020). The impact of macroeconomic determinants and tax form on inflation in selected Balkan countries. Serbian Journal of Management, 15(1), 7–18. https://doi.org/10.5937/sjm15-16685
Mladenović, S. S., Mladenović, I., & Ćuzović, D. (2019). Distributive trade and economic growth: EU28 evidence for the period 2008–2015. Journal of Business Economics and Management, 20(3), 489–506. https://doi.org/10.3846/jbem.2019.9857
Morris, R., & Aziz, A. (2011). Ease of doing business and FDI inflow to Sub-Saharan Africa and Asian countries. Cross Cultural Management: An International Journal, 18(4), 400–411. https://doi.org/10.1108/13527601111179483
Naudé, W. (2010). Entrepreneurship, developing countries, and development economics: New approaches and insights. Small Business Economics, 34, 1–12. https://doi.org/10.1007/s11187-009-9198-2
Pinheiro-Alves, R., & Zambujal-Oliveira, J. (2012). The Ease of Doing Business Index as a tool for investment location decisions. Economics Letters, 117(1), 66–70. https://doi.org/10.1016/j.econlet.2012.04.026
Ragin, C. C. (2000). Fuzzy-set social science. University of Chicago Press. https://doi.org/10.1017/S0022381607080309
Rantasila, K., & Ojala, L. (2015). National-level logistics costs: An overview of extant research. International Journal of Logistics Research and Applications, 18(4), 313–324. https://doi.org/10.1080/13675567.2015.1016413
Rogge, N., & Archer, G. (2021). Measuring and analyzing country change in establishing ease of doing business using a revised version of World Bank‘s Ease of Doing Business Index. European Journal of Operational Research, 290(1), 373–385. https://doi.org/10.1016/j.ejor.2020.07.065
Ruzekova, V., Kittova, Z., & Steinhauser, D. (2020). Export performance as a measurement of competitiveness. Journal of Competitiveness, 12(1), 145–160. https://doi.org/10.7441/joc.2020.01.09
Schneider, M. R., Schulze-Bentrop, C., & Paunescu, M. (2010). Mapping the institutional capital of high-tech firms: A fuzzy-set analysis of capitalist variety and export performance. Journal of International Business Studies, 41(2), 246–266. https://doi.org/10.1057/jibs.2009.36
Skarmeas, D., Leonidou, C. N., & Saridakis, C. (2014). Examining the role of CSR skepticism using fuzzy-set qualitative comparative analysis. Journal of Business Research, 67(9), 1796–1805. https://doi.org/10.1016/j.jbusres.2013.12.010
Solakivi, T., Ojala, L., Töyli, J., Hälinen, H.-M., Lorentz, H., Rantasila, K., & Naula, T. (2009). Finland State of Logistics 2009. Ministry of Transport and Communications Finland, Helsinki. Retrieved August 18, 2020, from https://trid.trb.org/view.aspx?id=907192
Sriyana, J., & Afandi, A. (2020). Asymmetric effects of trade openness on economic growth in selected ASEAN countries. E&M Economics and Management, 23(2), 66–82. https://doi.org/10.15240/tul/001/2020-2-005
Su, S., & Ke, J. (2017). National logistics performance benchmarking: A process-based approach using World Bank Logistics Performance Index database. Journal of Supply Chain and Operations Management, 15(1), 55–78.
Tvaronavičienė, M., & Ginevičius, R. (2003) Analysis of foreign direct investments and its impact on restructuring of Lithuanian economy. Journal of Business Economics and Management, 4(3), 184–197. https://doi.org/10.3846/16111699.2003.9636053
Virglerová, Z., Conte, F., Amoah, J., & Massaro, M. R. (2020). The perception of legal risk and its impact on the business of SMEs. International Journal of Enterpreneurial Knowledge, 8(2), 1–13. https://doi.org/10.37335/ijek.v8i2.115
Wang, C., Kim, Y. S., & Kim, C. Y. (2021). Causality between logistics infrastructure and economic development in China. Transport Policy, 100, 49–58. https://doi.org/10.1016/j.tranpol.2020.10.005
Woodside, A. G. (2013). Moving beyond multiple regression analysis to algorithms: Calling for adoption of a paradigm shift from symmetric to asymmetric thinking in data analysis and crafting theory. Journal of Business Research, 66(4), 463–472. https://doi.org/10.1016/j.jbusres.2012.12.021
World Bank. (2014). The LPI Methodology. Retrieved October 17, 2020, from https://wb-lpi-media.s3.amazonaws.com/LPI%20Methodology.pdf
World Bank. (2018). Logistics performance Index. Retrieved February 9, 2021, from https://lpi.worldbank.org/
World Bank. (2019). Doing Business Indicators. Retrieved September 15, 2020, from https://databank.worldbank.org/source/doing-business
World Bank. (2020). Doing Business 2020. Retrieved November 11, 2020, from https://openknowledge.worldbank.org/bitstream/handle/10986/32436/9781464814402.pdf