Determinants of profitability in the Indian logistics industry

Saripalle, Madhuri (2018): Determinants of profitability in the Indian logistics industry. Published in: International Journal of Logistics Economics and Globalization , Vol. Vol.7, No. No.1 (March 2018): pp. 13-27.

Abstract

The Indian economy has one of the highest transportation and logistics cost as a percentage of gross domestic product (13%) globally. This paper analyses trends in profitability and discusses some key macro and micro level factors influencing the Indian logistics industry comprising road transport logistics, storage and distribution. It discusses the role of macroeconomic factors such as tax policy in influencing the logistics network complexity, which in turn increase logistics costs. At a micro level, the paper uses firm-level data of 201 companies from Prowess database and estimates an econometric model to analyse major determinants of profitability in the logistics sector. The study finds that liquidity, market share, debt-equity, and age are significant determinants of profitability in the logistics sector.

• Item Type: MPRA Paper
• Language: English
• Keywords: profitability; transportation; supply chain; logistics; third party logistics; 3PL; India
• Subjects: L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance; L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L21 - Business Objectives of the Firm; L - Industrial Organization > L8 - Industry Studies: Services > L81 - Retail and Wholesale Trade ; e-Commerce

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