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A DEA-logistics performance index

Luisa Martí, Juan Carlos Martín and Rosa Puertas
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Luisa Martí: Universidad Politécnica de Valencia
Juan Carlos Martín: Universidad de Las Palmas de Gran Canaria
Rosa Puertas: Universidad Politécnica de Valencia

Journal of Applied Economics, 2017, vol. 20, 169-192

Abstract: Logistics and transport increasingly play a pivotal role in international trade relations. The Logistics Performance Index (LPI) measures the on-the-ground efficiency of trade supply chains or logistics performance. The aim of this paper is to propose a data envelopment analysis (DEA) approach to compute a synthetic index of overall logistics performance (DEA-LPI) and benchmark the logistics performance of the countries with LPI. Dealing with the six dimensions of LPI, the proposed approach uses DEA as a tool for multiple criteria decision making (MCDM). Furthermore, the paper also analyses the potential differences observed when using different variables, namely income and geographical area. Our findings suggest that the logistics performance depends largely on income and geographical area. High income countries are in the group of best performers, which is highly dominated by the EU.

Keywords: logistics performance; freight transport; data envelopment analysis; logistics performance index : (search for similar items in EconPapers)
JEL-codes: C5 F1 O52 R4 (search for similar items in EconPapers)
Date: 2017
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