All Title Author
Keywords Abstract

Effect of Economic Growth on the Logistics Sector in India

DOI: 10.4236/tel.2019.91016, PP. 210-222

Keywords: Logistics Sector, Multiple Linear Regression, Economic Growth

Full-Text   Cite this paper   Add to My Lib


Purpose: The aim is to attempt to explore the effect of selected economic growth indicators on the net profits in the logistics sector in India. Methodology: The research type used is causal research. The data are collected for the period of 1991-92 to 2016-17 from CMIE, RBI and government websites. The paper tries to establish the relationship among the independent variables such as the change in taxes, change in inflation rate and the change in GDP of Indian services sector on the dependent variable as profits of the Indian logistics industry. Findings: Results indicate that the tax expenses and inflation rate have a negative impact on the profit of logistics sector whereas the change in GDP service sector has a positive impact on the profit of the logistics sector. However, GDP service sector affects the profit of transportation industry less than the impact in comparison to the tax rate and inflation. Originality: This study provides the foundation for future research in the logistics sector. In today’s globalization and digitalization and with the advent of tax reforms like GST, this research is relevant with regard to determining the effect of taxation, inflation, and GDP on the logistics sector in India.


[1]  Mayer, J. (2018) Digitalization and Industrialization: Friends or Foes?
[2]  Panitz, R. and Glueckler, J. (2017) Rewiring Global Networks at Local Events: Congresses in the Stock Photo Trade. Global Networks, 17, 147-168.
[3]  Viswanadham, N and Gaonkar, R (2003) Leveraging Logistics to Enhance Indian Economic Competitiveness. CII Logistics.
[4]  Saucedo-Martínez, J.A., Pérez-Lara, M., Marmolejo-Saucedo, J.A., Salais-Fierro, T.E. and Vasant, P. (2017) Industry 4.0 Framework for Management and Operations: A Review. Journal of Ambient Intelligence and Humanized Computing, 1-13.
[5]  Neubert, G., Ouzrout, Y. and Bouras, A. (2018) Collaboration and Integration through Information Technologies in Supply Chains.
[6]  Fox, M.S., Barbuceanu, M. and Teigen, R. (2001) Agent-oriented Supply-Chain Management. In: Information-Based Manufacturing, Springer, Boston, MA, 81-104.
[7]  Sternad, M., Lerher, T. and Gajsek, B. (2018) Maturity Levels For Logistics 4.0 Based on Nrw’s Industry 4.0 Maturity Model. Business Logistics in Modern Management, 18, 695-708.
[8]  Lai, K.H. (2004) Service Capability and Performance of Logistics Service Providers. Transportation Research Part E: Logistics and Transportation Review, 40, 385-399.
[9]  Chatterjee, L. and Tsai, C. (2002) Transportation Logistics in Global Value and Supply Chains. Working Paper No. 2002G. Boston University, Boston.
[10]  Kherbash, O. and Mocan, M.L. (2015) A Review of Logistics and Transport Sector as a Factor of Globalization. Procedia Economics and Finance, 27, 42-47.
[11]  Saksoft (2018) Transportation and Logistics—The Nervous System of an Economy. Saksoft—Your Digital Transformation Partner.
[12]  Lieb, R. and Miller, J. (2002) The Use of Third-Party Logistics Services by Large US Manufacturers, the 2000 Survey. International Journal of Logistics, 5, 1-12.
[13]  Sinkovics, R.R. and Roath, A.S. (2004) Strategic Orientation, Capabilities, and Performance in Manufacturer—3PL Relationships. Journal of business Logistics, 25, 43-64.
[14]  Tipping, A. and Kauschke, P. (2016) Shifting Patterns, the Future of the Logistics Industry. Price Waterhouse Coopers, Phoenix.
[15]  Frank, K. (2018) The Indian Warehousing Opportunity Report 2018: Knight Frank.
[16]  Kumar, A. and Ramesh, A. (2018) Modelling Intermodal Freight Transportation Promotion for Sustainable Supply Chain in India. In: Sustainable Operations in India, Springer, Singapore, 115-137.
[17]  Sharma, N.K. and Kuswaha, G.S. (2017) A Study on Indian Logistics Network and Its impact on Economic Growth. IUP Journal of Supply Chain Management, 14, 38-60.
[18]  Kalra, G., Chotia, V. and Goel, A. (2016) Investigating the Relationship between Transport Infrastructure and Economic Growth: The Case of India. Indian Journal of Economics and Development, 12, 315-320.
[19]  World Bank (2013) Report: Reducing Supply Chain Barriers Could Increase Global GDP up to 6 Times More than Removing All Import Tariffs.
[20]  Doherty, S., Philip, R., Willink, B.T. and Correa, A. (2013) Enabling Trade: Valuing Growth Opportunities. World Economic Forum, 13-20.
[21]  Trade, E. (2013) Valuing Growth Opportunities. World Economic Forum.
[22]  Ferrari, C., Migliardi, A. and Tei, A. (2018) A Bootstrap Analysis to Investigate the Economic Efficiency of the Logistics Industry in Italy. International Journal of Logistics Research and Applications, 21, 20-34.
[23]  Berman, J. (2017) ShipStation Fulfillment Program Provides Parcel Shippers with. Logistics Management.
[24]  Kaplan, M. (2017) Aramex Expands E-Commerce Logistics beyond Middle East. Practical Ecommerce.
[25]  Yoon, H.Y., Bang, H.S. and Woo, S.H. (2016) A Comparative Study on the Logistics Research between International and Korean Journals. The Asian Journal of Shipping and Logistics, 32, 149-156.
[26]  Hayaloglu, P. (2015) The Impact of Developments in the Logistics Sector on Economic Growth: The Case of OECD Countries. International Journal of Economics and Financial Issues, 5, 523-530.
[27]  Liu, S. (2009) A Research on the Relationship of Logistics Industry Development and Economic Growth of China. International Business Research, 2, 197.
[28]  Hu, K., Gan, X.Q. and Gao, K. (2012) Co-Integration Model of Logistics Infrastructure Investment and Regional Economic Growth in Central China. Physics Procedia, 33, 1036-1041.
[29]  Wang, Y. and Wang, L. (2010) The Economic Growth Effect of Logistics Industry FDI Analysis. IBusiness, 2, 377.
[30]  Francois, P. (1981) Note on the Concept of Growth Poles. Development Economics and Policy Reading, 182-187.
[31]  Dai, Q. and Yang, J. (2013) Input-Output Analysis on the Contribution of Logistics Park Construction to Regional Economic Development. Procedia-Social and Behavioral Sciences, 96, 599-608.
[32]  Singh, A.P. (2016) Do Technology Spillovers Accelerate Performance of Firms? Unravelling a Puzzle from Indian Manufacturing Industry. Economics and Applied Informatics, 22, 108-120.
[33]  De, N. (2017) US Logistics Agency Launches Blockchain Sector Mapping Tool. Coinesk.
[34]  Sarkis, J., Meade, L.M. and Talluri, S. (2004) E-Logistics and the Natural Environment. Supply Chain Management: An International Journal, 9, 303-312.
[35]  Pradhan, R.P. and Bagchi, T.P. (2013) Effect of Transportation Infrastructure on Economic Growth in India: The VECM Approach. Research in Transportation Economics, 38, 139-148.
[36]  Choon Tan, K., Lyman, S.B. and Wisner, J.D. (2002) Supply Chain Management: A Strategic Perspective. International Journal of Operations & Production Management, 22, 614-631.
[37]  Wang, D.F., Dong, Q.L., Peng, Z.M., Khan, S. and Tarasov, A. (2018) The Green Logistics Impact on International Trade: Evidence from Developed and Developing Countries. Sustainability, 10, 2235.
[38]  Times Now (2017) Logistics Sector Given Infrastructure Status, to Help Boost GDP: Government.
[39]  Singh, A.P. (2017) Keeping It Simple: Comparative Analysis of TFP across Manufacturing Industries and Major States of India. Theoretical Economics Letters, 7, 1821.
[40]  Doshi, S., Madhavan, K. and Chandra, N. (2017) Supply Chain 2025—Trends & Implications for India. A Joint A.T. Kearnet—CSCMP Study.
[41]  KPMG (2007) Skill Gap in the Indian Logistics Sector: A White Paper. KPMG Confederation of Indian Industry.
[42]  Rastogi, V. (2018) What Is GST in India? Tax Rates, Key Terms and Concepts Explained. India Briefing, from Dezan Shira & Associates.
[43]  Tuckey, J.C. (1977) U.S. Patent No. 4036395. U.S. Patent and Trademark Office, Washington DC.
[44]  Durbin, J. and Watson, G.S. (1950) Testing for Serial Correlation in Least Squares Regression: I. Biometrika, 37, 409-428.
[45]  Tabachnick, B.G. and Fidell, L.S. (2001) Using Multivariate Statistics. Allyn and Bacon, Needham Heights.
[46]  Sahay, B.S. and Mohan, R. (2003) Supply Chain Management Practices in Indian Industry. International Journal of Physical Distribution & Logistics Management, 33, 582-606.
[47]  Singh, A.P. (2016) R&D Spillovers & Productivity Growth: Evidence from Indian Manufacturing. Indian Journal of Industrial Relations, 51, 563-579.


comments powered by Disqus