Improving logistics performance by reforming the pillars of Global Competitiveness Index

Abstract

The logistics performance of a country is crucial to national and international trade, and therefore has a direct effect on economic development. Owing to limited resources, policymakers need a guide for specifying the factors that need to be focused upon to bring about immediate and significant improvements in the logistics performance of their countries. This study aims to propose a methodology to develop a roadmap for policymakers in improving the logistics performance of their countries. For this purpose, we analyze the effect of the competitiveness pillars of the Global Competitiveness Index (GCI) on logistics performance (as measured by the Logistics Performance Index (LPI)), using a three-stage integrative methodology based on a tree-augmented naive Bayesian network, partial least square path model, and importance-performance map analysis. An empirical study is conducted using the GCI pillars of the World Economic Forum and the LPI of the World Bank. The results indicate that governments should focus on technological readiness, higher education and training, innovation, market size, and infrastructure to facilitate improvement in the logistics performance of their countries.