Logistic process indicator (LPI) as the measure of infrastructural and regional development

Abstract

Logistics represents a network of services that support the physical movement of goods, international trade and commerce within borders. The volume of international trade highly depends on factors facilitating trade and contributing to reducing its costs. Logistic is affecting the speed of globalization through optimizing the supply chain. Furthermore, this interdependence is the reason why the improvement of logistic is seen as an essential element of the regional and global development. The main aim of this study is to investigate the impact of key dimensions that affect the logistic process indicator (LPI) and to highlight their importance by applying the adequate methodology of its modeling. The evaluation of the LPI is performed using variables that include customs, infrastructure, ease of international shipments, logistics services quality, tracking and tracing and timeliness. Parameters have been collected for the period from 2007 to 2018. The extensive research is considering the data from 160 country in order to perceive the global level of the LPI. Outcome of the artificial neural network is used to underline developed segments of the logistic process and those segments of the process that need to be further developed.