The Mediator Role of Starting New Business in the Relationship between Logistics Performance and Growth

BY: MOHAMED ROBIN RASHED ELALAMI

ENTREPRENEUR

Economic growth refers to the enhancement in per capita income or purchasing power and this process of development. The main feature of economic growth is that continues progress by emergence of new source of growth when necessary. In addition to changes in the sources of economic growth, the indicators that explain economic growth are also changing.

Recent research shows that Gross Domestic Product (GDP) per capita is accepted as one of the main indicators of growth. Logistics Performance Index (LPI) which has a direct and indirect impact on economic growth, business here in Qatar indicate that examines a state nor country’s logistics performance in sub-dimensions.

To indicate the importance of economic growth and logistics performance, this study investigates the mediator role of starting new business in the relationship between logistics performance and gross domestic product per capita. The aim of the research is to analyze the progress of the business in the state based on the data of year 2010 to present and according to the data available at the Trade Ministry.

As a result of analyses, the mediation effect of starting new business on the relationship between logistics performance was not established. Even if no starting new business, the improvement in logistics investments directly affects economic growth. Even with existing logistics investments, it contributes to economic growth by increasing efficiency, increasing the capacity and cost of existing companies. In this case, starting new business does not have a mediator role.