Bridging Continents: Comparative Analysis of Infrastructure, Digitalization, and Institutional Drivers of Logistics Performance in Asian and European Economies

Abstract

Strengthening logistics performance has emerged as a key priority in global development agendas. This study is a comparative study of top 20 economies of Asia and Europe from 2007 to 2024, where dependent variable is Logistics performance Index (LPI), exploratory variables are Government Digital Index (GDI) and Internet Users (IT), and Controlled variables are Infrastructure Quality (INF), Logistics Services, Clearance process (ECP), Exports of goods and services, with the moderating effect of INF and GDI. The study has applied robust approach for study, Hausman test, VIF, Cross sectional dependency test and RE model is preferred over FE. The findings are INF has negative impact on LPI, the moderating effect of GDI and INF is not significant in both the regions, IT shows insignificant relationship with LPI, this states that adoption of IT doesn’t improve LPI without creating friendly environment with digital infrastructure. Policy Suggestions are, both regions need to improve technological advancement in Logistics sector, digitalisation can help to create multimodal environment friendly transportation system.