Moderating Effects of Logistics Infrastructure Development and Real Sector Productivity: A Case of Pakistan

Abstract

A well-oiled logistics sector physically moves the economy towards higher growth. A developed logistics infrastructure facilitates backward and forward linkages in global trade and manages the business cost of accessing markets. Logistics sector facilitates sectorwise growth in a way that it eases goods transmissions mechanisms. This study has assessed four indices of logistics which are road, rail, air and sea transport by forming indices using 13 indicators. Auto regressive distributed lag (ARDL)bound approach-based long-run results show that, for the case of Pakistan, development in the road transport has highest potential in growth productivity of agriculture and services sector, while sea transport performed best in industrial sector.