THE MEDIATOR EFFECT OF LOGISTICS PERFORMANCE ON ECONOMIC GROWTH: EVIDENCE FROM OECD COUNTRIES

Abstract

A crucial requirement to achieve a rapid economic growth path is a rising level of competitiveness in a global world. One of those factors which enable countries to be more competitive is their logistics capabilities. This study examines the mediator effect of logistics performance on the relationship between competitiveness and economic growth in OECD countries for 2007-2018. We employ the developed versions by structural equation models and Monte Carlo simulations of the initial mediation model. The findings show that logistics performance affects the related relationship as a partial mediator and that at least 80 percent of the mediating effect in this relationship can be explained by logistics performance. Therefore, policymakers should be aware that countries cannot achieve a stable growth path without advanced logistics infrastructure even they are heterogeneous in terms of their development levels.