Beyond Supply Chains: Investigating the Economic Impact of Logistics Performance
DOI:
https://doi.org/10.24191/jibe.v8i2.24246Keywords:
Logistics performance, Economic growth, West Africa, Fixed EffectsAbstract
This paper investigates the pivotal role of logistics performance in shaping economic growth in selected West African nations. Employing a rigorous fixed effects methodology over the period 2007–2022, the study unveils compelling insights. Logistics performance emerges as a critical driver of economic growth, emphasizing the need for infrastructure investments. Similarly, industrialization and trade openness have significant positive impacts on economic growth, endorsing pro-manufacturing and trade facilitation policies. Surprisingly, inflation exhibits no direct influence on growth, although prudent monetary management remains vital. These findings carry profound policy implications, advocating for holistic strategies to unlock West Africa's economic potential.References
Ademola, A., & Badiru, A. (2016), the impact of unemployment and inflation on economic growth in Nigeria (1981-2014). International Journal of Business and Economic Sciences Applied Research, 9(1), 47-55.
Afshan, A., & Sabeen, S. (2017), Determinants of economic growth in Pakistan: A time series analysis (1976-2015). European Online Journal of Natural and Social Sciences, 6(4), 686-700.
Alhakimi, S. S. (2018). Export and economic growth in Saudi Arabia: The granger causality test. Asian Journal of Economics and Empirical Research, 5(1), 29-35.
Bawa, S., & Abdullahi, I.S. (2012), Threshold effect of inflation on economic growth in Nigeria. CBN Journal of Applied Statistics, 3(1), 43-63
Chakamera, C., & Pisa, N. M. (2021). Associations between logistics and economic growth in Africa. South African Journal of Economics, 89(3), 417-438.
Changyong, F. E. N. G., Hongyue, W. A. N. G., Naiji, L. U., Tian, C. H. E. N., Hua, H. E., & Ying, L. U. (2014). Log-transformation and its implications for data analysis. Shanghai archives of psychiatry, 26(2), 105.
Coto-Millán, P., Agüeros, M., Casares-Hontañón, P., & Pesquera, M. Á. (2013). Impact of logistics performance on world economic growth (2007–2012). World Review of Intermodal Transportation Research, 4(4), 300-310.
Darkoh, M. B. K., & Kinyanjui, M. N. (2015). Industrialization and rural development in the Anglophone African countries. Journal of Developing Societies, 31(3), 358-384.
Das, A., & Paul, B. P. (2011). Openness and growth in emerging Asian economies: Evidence from GMM estimations of a dynamic panel. Economics Bulletin, 31, 2219–2228.
de Vass, T., Shee, H., & Miah, S. J. (2021). IoT in supply chain management: Opportunities and challenges for businesses in early industry 4.0 context. Operations and Supply Chain Management: An International Journal, 14(2), 148-161.
Dufrenot, G., Mignon, V., & Tsangarides, C. (2010). The trade-growth nexus in the developing countries: A quantile regression approach. Review of World Economics, 146, 731-761.
Espinoza, R.A., Leon, H.L., & Ananthakrishnan, P. (2010), Estimating the Inflation-Growth Nexus-A Smooth Transition Model. IMF Working.
Fetahi-Vehapi, M., Sadiku, L., & Petkovski, M. (2015). Empirical analysis of the effects of trade openness on economic growth: An evidence for South East European countries. Procedia Economics and Finance, 19, 17-26.
Giles, J.A., & Williams, C.L. (2000). Export-led growth: a survey of the empirical literature and some non-causality results. Journal of International Trade and Economic Development, 9(3), 2000261-2000337. doi: 10.1080/09638190050086177.
Gillman, M., & Harris, M.N. (2010), the effect of inflation and growth: Evidence from a panel of transition countries. Economics of Transition, 18(4), 697-714
Gujarati, D. (2003). Basic Econometrics. 4th Edn. Singapura: McGraw-Hill.
Hasanov, F. (2010), Relationship between inflation and economic growth in Azerbaijani economy: Is there any threshold effect? Asian Journal of Business and Management Sciences, 1(1), 20-29
Hye, Q. M., Wizarat, S., & Lau, W.-Y. (2016). The impact of trade openness on economic growth in China: An empirical analysis. The Journal of Asian Finance, Economics and Business, 3, 27–37. https://doi.org/10.13106/jafeb
IMF. (2012), Statistics on the Growth of the Global Gross Domestic Product (GDP) from 2003 to 2013. Washington, DC: International Monetary Fund.
Imoisi, A.I., Amba, E.A.A., & Okon, I.M. (2017), Unemployment rate and economic growth in Nigeria: An empirical analysis, 1980-2016. International Journal of Development and Sustainability, 6(7), 369-384
Jackson, E. A., & Jabbie, M. N. (2021). Import Substitution Industrialization (ISI): An approach to global economic sustainability. In Industry, Innovation and Infrastructure (pp. 506-518). Cham: Springer International Publishing.
Jun, W., Mughal, N., Zhao, J., Shabbir, M.S., Niedbała, G., Jain, V. & Anwar, A. (2021). Does globalization matter for environmental degradation? Nexus among energy consumption, economic growth, and carbon dioxide emission. Energy Policy, 153, 112230.
Karahan, O., & Çolak, O. (2020), Inflation and economic growth in Turkey: Evidence from a nonlinear ARDL approach. In: Janowicz-Lomott, M., Łyskawa, K., Polychronidou, P., Anastasios Karasavvoglou, A., editors. Economic and Financial Challenges for Balkan and Eastern European Countries. Cham, Switzerland: Springer Nature, 33-46.
Kasidi, F., & Mwakanemela, K. (2013). Impact of inflation on economic growth: A case study of Tanzania. Asian Journal of Empirical Research, 3(4), 363-380.
Khadim, Z., Batool, I., Akbar, A., Poulova, P., & Akbar, M. (2021). Mapping the moderating role of logistics performance of logistics infrastructure on economic growth in developing countries. Economies, 9(4), 177.
Khan, M.B., Saleem, H., Shabbir, M.S., & Huobao, X. (2021). The effects of globalization, energy consumption and economic growth on carbon dioxide emissions in South Asian countries. Energy and Environment, 2(3). doi: 10.1177/0958305X20986896.
Khan, M.S., & Senhadji, A.S. (2001). Threshold effects in the relationship between inflation and growth. IMF Staff Papers, 48(1), 1-21.
Kim, D.-H., Lin, S.-C., & Suen, Y. B. (2011). Nonlinearity between trade openness and economic development. Review of Development Economics, 15, 279–292. https://doi.org/10.1111/rode.2011.15.issue-2
Kim, D.-H., Lin, S.-C., & Suen, Y. B. (2012). The simultaneous evolution of economic growth, financial development and trade openness. The Journal of International Trade & Economic Development, 21, 513–537. https://doi.org/10.1080/09638199.2010.497933
Kugler, P. (1991). Growth, exports and cointegration: an empirical investigation. Review of World Economics, 127, 73-82.
Kuteyi, D., & Winkler, H. (2022). Logistics challenges in sub-Saharan Africa and opportunities for digitalization. Sustainability, 14(4), 2399.
Madurapperuma, W. (2016), Impact of inflation on economic growth in Sri Lanka. Journal of World Economic Research, 5(1), 1-7
Mallik, G., & Chowdhury, A. (2001). Inflation and economic growth: Evidence from four South Asian countries. Asia Pacific Development Journal, 8(1), 123-135.
Mamo, F.T. (2012). Economic Growth and Inflation: A Panel Data Analysis. Master’s Thesis. Sweden: Södertörns University.
Marelli, E., & Signorelli, M. (2011). China and India: Openness, trade and effects on economic growth. The European Journal of Comparative Economics, 8, 129–154
Mendes, A. P. F., Bertella, M. A., & Teixeira, R. F. (2014). Industrialization in Sub-Saharan Africa and import substitution policy. Brazilian Journal of Political Economy, 34, 120-138.
Munim, Z. H., & Schramm, H. J. (2018). The impacts of port infrastructure and logistics performance on economic growth: the mediating role of seaborne trade. Journal of Shipping and Trade, 3(1), 1-19.
Musah, A., & Yakubu, I. N. (2022). Exploring industrialization and environmental sustainability dynamics in Ghana: a fully modified least squares approach. Technological Sustainability, 2(2), 142-155.
Ngoc, B.H. (2020), The asymmetric effect of inflation on economic growth in Vietnam: Evidence by nonlinear ARDL approach. The Journal of Asian Finance Economics and Business, 7(2), 143-149
Nowbutsing, B. M. (2014). The impact of openness on economic growth: Case of Indian Ocean rim countries. Journal of Economics and Development Studies, 2, 407–427.
Ogunyemi, I. (2022). Logistics Performance Index: Nigeria ranks lowest In West Africa — Experts. Retrieved from: https://tribuneonlineng.com/logistics-performance-index-nigeria-ranks-lowest-in-west-africa-experts/
Opoku, E. E. O., & Yan, I. K. M. (2019). Industrialization as driver of sustainable economic growth in Africa. The Journal of International Trade & Economic Development, 28(1), 30-56.
Osuala, A.E., Osuala, K.I., & Onyeike, S.C. (2013). Impact of inflation on economic growth in Nigeria: A causality test. Journal of Research in National Development, 11(1), 206-216.
Richmond, T. (2018). A Degree of Uncertainty: An Investigation into Grade Inflation in Universities. Reform Report. Available from: https://www.reform.uk/sites/default/files/2018-06/A%20Degree%20 of% 20 Uncertainty%20 final_0.pdf.
Sakyi, D., Villaverde, J., & Maza, A. (2015). Trade openness, income levels, and economic growth: The case of developing countries, 1970–2009. The Journal of International Trade & Economic Development, 24, 860– 882. https://doi.org/10.1080/09638199.2014.971422
Segal T., (2021). Import Substitution Industrialization (Isi) Defined, With Example. Retrieved From Https://Www.Investopedia.Com/Terms/I/Importsubstitutionindustrialization.Asp
Shibuya, K., Shibasaki, R., Kawasaki, T., & Tokuori, T. (2023). Stagnant Logistics Growth Simulation On West African Intermodal Corridors. Transportation Research Interdisciplinary Perspectives, 21, 100867.
Soludo, C. C., Ogbu, M. O., & Chang, H. J. (Eds.). (2004). The Politics Of Trade And Industrial Policy In Africa: Forced Consensus?. IDRC.
Tang, C. F., & Abosedra, S. (2019). Logistics performance, exports, and growth: Evidence from Asian economies. Research in Transportation Economics, 78, 100743.
Tukamuhabwa, B., Mutebi, H., & Kyomuhendo, R. (2023). Competitive advantage in SMEs: Effect of supply chain management practices, logistics capabilities and logistics integration in a developing country. Journal of Business and Socio-Economic Development, 3(4), 353-371.
Umaru, A., & Zubairu, A.A. (2012). Effect of inflation on the growth and development of the Nigerian economy (An empirical analysis). International Journal of Business and Social Science, 3(10), 187-188.
Wa Githinji, M., & Adesida, O. (2011). Industrialization, exports and the developmental State in Africa: The case for transformation. Economics Department Working Paper Series, (126).
Wang, G., Lei, Z., Yu, T., Zhang, C., Sun, H., & de Sousa, J. S. S. (2022). Logistics Performance Evaluation in West Africa. Frontiers in Computing and Intelligent Systems, 2(1), 54-60.
Were, M. (2015). Differential effects of trade on economic growth and investment: A cross-country empirical investigation. Journal of African Trade, 2, 71–85. https://doi.org/10.1016/j.joat.2015.08.002
West, R. M. (2022). Best practice in statistics: The use of log transformation. Annals of Clinical Biochemistry, 59(3), 162-165.
World Bank. (2023). The Logistics Performance Index and Its Indicators. Retrieved from: https://lpi.worldbank.org/sites/default/files/2023-04/LPI_2023_report_with_layout.pdf
Xiao, J. (2009), The Relationship Between Inflation and Economic Growth of China: Empirical Study from 1978 to 2007. Master Program in Economic Growth. Innovation and Spatial Dynamics. Sweden: Lund University.
Yakubu, I. N. (2019). Does corruption grease or sand the wheels of bank profitability in Ghana?. Cogent Economics & Finance, 7(1), 1701909.
Yakubu, I. N. (2022). Exploring the Drivers of Economic Growth in Sub-Saharan Africa: The Interactive Effect of Globalization and Financial Development. In L. M. B Vadell, N. Mansour & W.R Muñoz (Eds.). The Role of Fintech in the Post-Covid-19 World: Law and Regulation (pp. 139-147). Atelier Libros Jurídicos, Barcelona, Spain.
Yakubu, I. N., & Bunyaminu, A. (2021). Financial Inclusion and Economic Growth in West Africa: The Moderating Effect of Financial Openness. Empirical Economics Letters, 20(2), 155-164.
Yakubu, I. N., Abokor, A. H., & Gedik Balay, I. (2021). Re-examining the Impact of Financial Intermediation on Economic Growth: Evidence from Turkey. Journal of Economics and Development, 23(2), 116-127.
Yu, Y., Wang, X., Zhong, R. Y., & Huang, G. Q. (2016). E-commerce logistics in supply chain management: Practice perspective. Procedia Cirp, 52, 179-185.
Zamfir, I. (2016). Africa’s Economic Growth: Taking off or slowing down? Members’ Research Service, Directorate-General for Parliamentary Research Services, European Parliament.
Zarra-Nezhad, M., Hosseinpour, F., & Arman, S. A. (2014). Trade-growth nexus in developing and developed countries: An application of extreme bounds analysis. Asian Economic and Financial Review, 4, 915–929.
Downloads
Published
Issue
Section
License
Copyright (c) 2024 Mubarik Abdul Mumin, Ibrahim Nandom Yakubu
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
