The Impact of Logistics Efficiency on Economic Growth in the Era of the New Normal: Experiences of G-7 Countries

Purpose - The purpose of this study is to analyze the impact of logistics efficiency in G-7 countries on economic growth. In other words, it quantitatively evaluates the correlation between the alternative variable of logistics performance index (LPI), representing logistics efficiency, and economic growth, providing an in-depth analysis of how logistics efficiency in G-7 countries significantly influences economic growth. Design/Methodology/Approach - In this study, a Cobb-Douglas production function is employed as the basis for the research model. The Cobb-Douglas production function is an economic model that explains output obtained through the efficient combination of factors involved in production. Through this model, the influence of logistics efficiency on economic growth can be estimated. Findings - The estimated results using a fixed-effects model are as follows. Both the amount of capital input (K) and labor input (L) have significant effects on economic growth. On the other hand, the logistics performance index (LPI), representing an alternative measure of logistics efficiency, is not statistically significant in relation to the economic growth rate. Research Implications - This study holds significance in elucidating the relationship between logistics efficiency and economic growth in G-7 countries, and it also contributes to enhancing understanding and interest in the field of logistics.