The Effect of Green Logistics on Economic growth, Social and Environmental Sustainability: An Empirical Study of Developing Countries in Asia

Abstract

This panel study investigates the relationship between green logistics indices, economic, environmental, and social factors in the perspective of Asian emerging economies. This study adopted FMOLS and DOLS methods to test research hypothesis, catering the problem of endogenity and serial correlation. The results suggest that logistics operations, particularly LPI2 (efficiency of customs clearance processes), LPI4 (quality of logistics services) and LPI5 (trade and transport-related infrastructure), are positively and significantly correlated with per capita income, manufacturing value added and trade openness. While, greater logistics operations are negatively associated with social and environmental problems including, climate change, global warming, carbon emissions, and poisoning atmosphere. In addition, human health is badly affected by heavy smog, acid rainfall, and water pollution. The findings further extend and reveal that political instability, natural disaster and terrorism are also a primary cause of poor economic growth and environmental sustainability with poor trade and logistics infrastructure. Further, the application of renewable energy resources and green practices can mitigate negative effects on social and environmental sustainability without compromising the performance of economic growth. There is very limited empirical work presented in literature using renewable energy and green ideology to solve macro-level social and environmental problems, while this study will assist the policymakers and researchers to understand the importance of green concept in improving countries’ social, economic and environmental performance.