Modeling the Growth Dynamics of Logistics Performance: Industrialization, Environmental Technology, and Economic Transformation in Manufacturing Economies

Global manufacturing economies have faced logistics performance challenges in recent decades. This study investigates the influence of industrialization, environmental technology, trade openness, foreign direct investment, and economic growth on the logistics performance index in the top 20 manufact...

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Bibliographic Details
Main Authors: Umar Hayyat, Li Qian, Maleeha Saeed, Wajid Nawaz
Format: Article
Language:English
Published: MDPI AG 2025-05-01
Series:Systems
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Online Access:https://www.mdpi.com/2079-8954/13/5/375
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Summary:Global manufacturing economies have faced logistics performance challenges in recent decades. This study investigates the influence of industrialization, environmental technology, trade openness, foreign direct investment, and economic growth on the logistics performance index in the top 20 manufacturing economies from 2007 to 2023. This study used an advanced panel approach to obtain robust results, cross-section dependency, a unit root test and a panel cointegration test. The panel quantile regression (PQL) and panel quantile estimates based on income methods were employed to analyze long-run and short-run estimations. The empirical results show that industrialization accelerated across all the quantiles except at the 10th quantile, while environmental technology had a significantly positive impact on logistics performance across all quantiles (10th–90th). Moreover, our baseline model was further supported by the fact that we used Driscoll–Kraay and Prais–Winsten’s estimates and a panel causality test. Our findings reveal that in manufacturing countries, industrialization, environmental technology, and economic growth have a positive impact on logistics performance. This study proposes several recommendations to improve industrialization and environmental technology in manufacturing countries to promote logistics performance. At the same time, more resources should be allocated for industrialization as well as environmental technologies to promote logistics performance.
ISSN:2079-8954