LOGISTICS PERFORMANCE INDEX (LPI) AND ITS RELATIONSHIP WITH MAIN ECONOMIC INDICATORS AND INDEXES

Abstract

The authors of the report "Connecting to compete 2018. Trade logistics in the global economy" argue that an improvement of 1 point in the LPI rating in the country increases trade by 16 percent, regardless of the price factor; reducing the LPI gap by 20 percent between the country and the leading country leads to an increase in real GDP by 0.1 percent (catch-up scenario). The aim of this article is to prove that logistics is a significant component of economic changes in the economy, and through its measurement the LPI index to show the close relationship of logistics efficiency with key economic indicators (gross domestic product, exports, imports, foreign direct investment) and economic indices ( global competitiveness, doing business, global innovation index, market potential), which provide our international partners with an assessment of the possibility of doing business in the country, its involvement in international trade and participation in global supply chains. The author shows that logistics plays a significant role in ensuring economic prosperity, openness of the economy, attracting foreign investors and facilitates the participation of the economy cranes in global supply chains and can even act as a catalyst for economic change. The application of the statistical method allowed to correlate the places occupied by LPI countries with the places occupied by these countries in the ratings of major economic indicators and indices (10 ratings in total), to analyze the relationship between these ratings and the impact of LPI on the assessment of position in each of these indicators. The object of the analysis were data from 26 LPI countries (7 countries - the top 10 LPI economies in the world; 10 countries - the most efficient middle-income economies; 9 countries - the most efficient low-income economies).Proved: 1) a strong link between the efficiency of logistics as measured by LPI with the main economic indicators - as exports of goods and services and foreign direct investment, through which logistics affects imports and gross domestic product; 2) close connection of efficiency of logistics according to LPI measurement with economic indices of global competitiveness, a rating of the best countries for business, the global innovation index, ease of doing business and market potential; It has been confirmed that improving the country's position in the LPI ranking will significantly change the country's competitiveness assessment, its innovation index and business opportunities.