Links between the economy competitiveness and logistics performance in the Visegrád Group countries: Empirical evidence for the years 2007-2018

Abstract

Objective: The objective of the article is to examine the relationship of competitiveness and logistics performance and on the basis of this relationship to examine which of the 12 pillars of the Global Competitiveness Index (GCI) can progress be achieved in the logistics performance of V4 countries. After this we analyse the possibility of creating a common indicator number, by which the index formulated based on the GCI pillars and the Logistic Performance Index (LPI) values can simultaneously express competitiveness and logistics development level. Research Design & Methods: For our research we used the time series from the Logistic Performance Index published by the World Bank every three years and the Global Competitiveness Index published by the World Economic Forum annually. We analysed the correlation between the pillars of the GCI and the index components of the LPI and then chose pillars from which it is apparent how competitiveness determines the development level of logistics. For this at first we used the Pearson-correlation and later the Structural Equation Model We performed the examination of the logistics development level of V4 countries based on the competitiveness pillars by objective index values, as well as by comparison to countries that are on the top of the LPI ranking Findings: Institutions, ICT adoption and Innovation have the most defining effect on logistic performance in V4 Group. These countries were successful in improving the performance level of their logistic sector, but the performance of Poland and the Czech Republic exceeds the performance of Slovakia and Hungary, in practically all of the studied areas. Implications & Recommendations: The present study primarily highlights the fact that efficient further development can only be realised by the appropriately harmonising the activities of economic policy decision makers and actors. The examined Visegrad Group countries showed similar development therefore we also gave them similar suggestions, which mainly include the development of the info-communication sector and the improvement in the effectiveness of the Institutions competitiveness pillar. Contribution & Value Added: The last time V4 countries were logistically presented was in 2015. Since then the pillar structure of the World Economic Forum has undergone significant change. This study examines the group’s logistic performance using more up-to date data and highlights the way for further research activities, searching for those comparative advantages, taking advantage of which the four countries can further increase their competitiveness and logistics performance.