RELATIONSHIP BETWEEN DOMESTIC LOGISTICS OPPORTUNITY EFFICIENCY AND INTERNATIONAL LOGISTICS OPPORTUNITY EFFICIENCY BASED ON MARKET POTENTIAL: EMPIRICAL RESEARCH ON DEVELOPING COUNTRIES

Year 2022, Volume: 9 Issue: 2, 79 - 89, 30.06.2022

Karahan Kara

https://doi.org/10.17261/Pressacademia.2022.1555

Abstract

Purpose- This research has two main purposes. The first purpose is to determine the domestic and international logistics opportunity efficiency
levels based on the market potentials of developing countries. The second purpose is to determine whether the domestic logistics opportunity
(DLO) efficiency of developing countries has a significant effect on the international logistics opportunity (ILO) efficiency.
Methodology - Two basic analysis techniques have been applied in this study. In the first analysis, two output-oriented data envelopment analysis
(DEA) models have been developed to determine the DLO and ILO efficiency of developing countries. The data of the input variables are taken
from the Market Potential Index (MPI) 2021 report. Data for output variables are taken from the Agility Emerging Markets Logistics Index (AEMLI)
2022 report. In the second analysis, simple regression analysis has been applied to determine the relationship between DLO efficiency and ILO
efficiency. The sampling consists of 45 developing countries.
Findings- According to the DEA Model-1, the DLO efficiency of 26 developing countries has been determined at the full efficiency level. 19 countries
are not at the full efficiency level. According to the DEA Model-2, the ILO efficiency of 31 developing countries has been determined at the full
efficiency level. 14 countries are not at the full efficiency level. According to the simple regression analysis findings, DLO efficiency has a positive
and significant effect on ILO efficiency.
Conclusion- It has been determined which country should focus on which input variable for the developing countries that are not at the full
efficiency level to reach the full efficiency level. It has been determined that the DLO and ILO efficiency of five countries are different. Empirical
evidence has been obtained that the steps to be taken to increase the DLO efficiency will also increase the ILO effectiveness.

Keywords

Domestic logistics opportunity, international logistics opportunity, emerging market potential, DEA, linear regression analysis

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