Exploring the Interplay of Socio-economic and Environmental Factors in Green Logistics: An Analysis of G7 Countries

Abstract

The study aimed to examine the socio-economic and environmental factors influencing green logistics in G7 countries. The study applied FMOLS and DMOLS techniques by using panel data spanning from 2007 to 2021. The findings indicate a positive association between green logistics indices and per-capita GDP growth, indicating that supply chain management is aligned with economic growth and corporate environmental policies to yield long-term benefits. Moreover, the panel causality analysis revealed one-way connections from a per-capita GDP and socio-economic factors to the logistics index. The study supports the "neutrality hypotheses" concerning the relationships between foreign direct investment (FDI), trade, and logistics index during the given time period. These findings emphasize the importance of adopting integrated sustainable chain management to promote environmental development. The study advocates for businesses to adopt a "go-for-green" approach to align with the environmental sustainability agenda. The findings provide valuable insights for policymakers, business leaders, and researchers working towards sustainable development in G7 countries.