Source: World Bank for GDP data. Various sources for logistics costs.
- Transportation infrastructures. Influences transport costs, capacity and reliability. Extensive transport infrastructures are linked with lower logistics costs.
- Role of economic sectors. Economies relying on the primary (e.g. agriculture and mining) and secondary (manufacturing) sectors have higher logistics costs than economies relying on the tertiary (services) sector.
- Interest rates. Mostly impact transactional and inventory carrying costs. Higher interest rates
- Level of competition. Monopolistic and oligopolistic markets (e.g. state owned enterprises) tend to have higher logistics costs as stakeholders have less incentives to innovate and use infrastructure (e.g. ports) from a rent seeking perspective.
- Telecommunication infrastructures. Reduce transactional and inventory management costs.
- Legal system. Enforcement of contracts and protection of private property (e.g. terminals, warehouses).
- Regulations and taxation. The level of constraints the transport sector is subject to, such as environmental regulations, as well as its taxation level.