Modeling the moderating role of institutions on logistics–environment nexus in developed and developing economies

Abstract

The primacy of logistics, environmental sustainability, and institutions for sustainable development has attracted the attention of researchers and policymakers. However, the role of institutions in the logistics–environment relationship has not been documented in the extant literature. Thus, this study examined the role of institutional (governance) quality on the logistics–environment nexus and compared the case of developed and developing economies using a state-of-the-art econometrics technique—Chudik-Pesaran (2022) Augmented Anderson–Hsiao two-step Generalized Method of Moment estimator for dynamic short-T panels, which is superior to previously used techniques in the extant literature. Key empirical findings outline a positive elasticity of environmental performance with respect to logistic performance and revealed that institutional factors play a significant role in the association between logistics performance and environmental sustainability in both developed and developing economies. The study results are useful for practitioners and key players and policymakers in the supply chain and logistics management industry in both developing and developed blocs. Thus, policies on green logistics and environmental sustainability should be pursued in both blocs are suggested in the concluding section of this study.