The Imprecision of Logistics Performance Index Rankings

17 Pages Posted: 10 Jun 2022

See all articles by Cornelius A. Rietveld

Cornelius A. Rietveld

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE)

Pankaj Patel

Villanova University - School of Business

Date Written: May 30, 2022

Abstract

The purpose of this study is to analyze the precision of the rankings based on the World Bank’s widely used Logistics Performance Index (LPI). Although uncertainty in LPI rankings is acknowledged by the developers of the LPI, we use a recently developed methodology to show that the statistical precision of the rankings—the extent to which rankings provide meaningful separation between countries—is very low, rendering LPI ranking less useful for logistics policies. We call for a more critical assessment of the experts’ responses underlying the LPI to improve the relevance and precision of LPI rankings.

Keywords: Logistics, Rankings, Rank Precision, World Bank

JEL Classification: F00, N70, O57

Suggested Citation

Rietveld, Cornelius A. and Patel, Pankaj, The Imprecision of Logistics Performance Index Rankings (May 30, 2022). Available at SSRN: https://ssrn.com/abstract=4123000 or http://dx.doi.org/10.2139/ssrn.4123000

Cornelius A. Rietveld (Contact Author)

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

P.O. Box 1738
3000 DR Rotterdam, NL 3062 PA
Netherlands

Pankaj Patel

Villanova University - School of Business ( email )

800 Lancaster Avenue
Villanova, PA 19085-1678
United States

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