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Mohammad Reza
Faculty of Graduate Studies, Logistic Management Program, Chulalongkorn University, 254 Phayathai Road, Pathumwan, Bangkok Thailand. 10330 United Nations Economic Commisions for Asia and the Pacific, S-3182, United Nations, New York, NY, 10017
Industrial & Manufacturing Engineering

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The Relationship between Logistics and Economic Development in Indonesia: Analysis of Time Series Data Mohammad Reza
Jurnal Teknik Industri: Jurnal Keilmuan dan Aplikasi Teknik Industri Vol. 15 No. 2 (2013): DECEMBER 2013
Publisher : Institute of Research and Community Outreach - Petra Christian University

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (336.981 KB) | DOI: 10.9744/jti.15.2.119-124

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 plays 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.
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