Logistics Performance Index-Driven Policy Development: an Application To Turkey

Abstract

Logistics Performance Index (LPI), published by the World Bank, is a powerful tool for countries to benchmark and assess their performance in global logistics business. Researchers have investigated relations between LPI scores and other related statistics for developing country logistics policies; however, no studies examine the strategies of countries with high or increasing LPI scores. These countries could be used as a benchmark for improving the performance of competing countries, specifically emerging economies. The aim of this study is to develop a methodological framework for recommending logistics policies to improve the LPI score of specific countries. The study implements both qualitative and quantitative methods for developing the strategic recommendations in an uncertain business environment. The sources of the required data include logistics magazines, scientific articles, newspapers, World Bank investment reports, news and Ministry of Transport publications of the countries, as well as expert opinions. The framework consists of two main steps; (i) analyzing countries' logistics strategies and their impacts on LPI scores and (ii) providing policy recommendations for improving the LPI score of specific countries under consideration. We implemented the developed framework to provide strategic recommendations for Turkey. The developed framework is a strategic tool which can be used by countries to benchmark and implement relevant logistics policies, thus sustaining and improving their LPI scores and worldwide trade performances.