CROATIAN COMPETITIVENESS WITHIN EUROPEAN LOGISTICS SPACE

Abstract

World trade between countries is operated within a network of increasingly global logistics operators. But the ease with which traders can use this network to connect with international markets, by large depends on country-specific factors such as trade procedures, transport and telecommunications infrastructure, and the domestic market for support services. The Logistics Performance Index (LPI) and its component indicators provide a unique global point of reference to better understand these key dimensions of logistics performance. The first worldwide LPI was developed by the World Bank to provide a better assessment about how respective countries rank in the managerial and physical effectiveness of their logistics. At the global level in 2010 Croatia ranks 74th, behind developed EU countries, but also behind EU Balkan countries Bulgaria, Romania and Greece. The initial hypothesis of this study is that improving LPI to acceptable levels (LPI > 3.5) would significantly improve trade expansion, ability to attract foreign direct investments, and economic growth. Research results are based on primary and secondary research methods. Findings of this study should provide a realistic way to improve national competitiveness in European and global logistics market.

Key words: Logistics Performance Index, competitiveness, logistics market