The Relationship between Logistics and Economic Development in Indonesia: Analysis of Time Series Data
Abstract: This paper
investigates the relationship between logistics and economic development in
Indonesia using time series data on traffic volume and economic growth for the
period from 1988 to 2010. Literature reviews were conducted to find the most
applicable econometric model. The
data of cargo
volume that travels
through sea, air
and rail is
used as the
logistics index, while GDP is
used for the economic index. The time series data was tested using stationarity
and co-integration tests. Granger causality tests were employed, and then a
proposed logistic model is
presented. This study
showed that logistics
play an important
role in supporting
and sustaining economic growth, in a form where the economic growth is
the significant demand-pull effect towards logistics. Although the model is
developed in the context of Indonesia, the overall statistical analysis can be
generalized to other developing economies. Based on the model, this paper
presented the importance of sustaining economic development with regards
continuously improving the logistics infrastructure.
Author: Mohammad Reza
Journal Code: jptindustrigg130014
