Determinants of profitability in the Indian logistics industry

Madhuri Saripalle

MPRA Paper from University Library of Munich, Germany

Abstract: The Indian economy has one of the highest transportation and logistics cost as a percentage of gross domestic product (13%) globally. This paper analyses trends in profitability and discusses some key macro and micro level factors influencing the Indian logistics industry comprising road transport logistics, storage and distribution. It discusses the role of macroeconomic factors such as tax policy in influencing the logistics network complexity, which in turn increase logistics costs. At a micro level, the paper uses firm-level data of 201 companies from Prowess database and estimates an econometric model to analyse major determinants of profitability in the logistics sector. The study finds that liquidity, market share, debt-equity, and age are significant determinants of profitability in the logistics sector.

Keywords: profitability; transportation; supply chain; logistics; third party logistics; 3PL; India (search for similar items in EconPapers)
JEL-codes: L1 L21 L81 (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-cfn
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Citations: View citations in EconPapers (2)

Published in International Journal of Logistics Economics and Globalization No.1.Vol.7(2018): pp. 13-27

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Journal Article: Determinants of profitability in the Indian logistics industry (2018)
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