Philippine Logistics Green Total Factor Productivity Analysis

In the advent of the exponential development of the world economy and the continuous trend of globalisation,came the increasingly significant interest of developing the logistics industry in many countries.At present,every nation in the world is keen on prioritising the enhancement of its logistics industry,accompanied by the importance given on the industrial growth rate and the quality of development becoming primary indicators in the process of evaluating the comprehensive economic capacity of a region.However,along with the innovations made to further the development in the field of logistics,there are countries whom neglected the preservation of the ecological environment in certain regions,which then was further deepened by the lack of awareness on environmental sustainability,thereby causing a series of environmental consequences that resulted in the relatively unsatisfactory quality of sustainable development across the logistic industries.Therefore,it is imperative for the nations to act in line with strengthening the environmental aspect of its economic development coupled with technological efficiency in the course of modernising its logistic processes.The key to answering the question on how to promote the environmental sustainability and the efficient development of the industries,and to further improve the growth rate of its sustainable development lies in the increase of the industrial development quality in the logistics industry which is then measured by the Green Total Factor Productivity(GTFP).The republic of the Philippines,located in Southeast Asia,is an archipelago country with regional advantages of logistics development.It is an archipelagic country,which is strategically located in Southeast Asia that has a geographical advantage in the development of industrial areas especially the ones related to logistical operations.However,due to the Philippine government’s handling of the its logistics industry,as well as its inadequacy in passing industrial regulations and restrictions,most of the logistic enterprises in the country lack the necessary consciousness in adapting the concept of sustainable development,which is often neglected in favour of the incremental gains in profit during the process of development.On the other hand,issues such as low levels of research culture,the logistic development systems being far from stable,the unreasonable approaches that exist in the current logistical operations,inefficient mode of logistics as well as the industry having the impediments of high energy consumption are further exacerbated by the country’s high levels of pollution.Therefore,the objective of assessing the issues stated above,this paper scientifically proves and evaluates the current situation of the GTFP development of the logistics industry.Under the principles of economic sustainability theories,and constructs an in-depth analysis of its main driving forces which include both theoretical and practical significance that aim to promote an environmental conscious and technologically efficient mode of development of the logistics industry in the country.In this paper,the logistics industry in the Philippines was selected as the research topic.GML index based on SBM direction distance function is used to calculate and analyse the development status and driving forces of GTFP in the logistics industry in the Philippines.The research shows that:(1)the green total factor productivity of the logistics industry in the Philippines showed an overall stable trend in the sample period,but there was still a relative gap in its green development compared with the manufacturing industry and the construction industry.(2)The development of the green technology progress/change in the logistics industry of the country exhibited relatively low rates in the sample period and indicates an overall negative growth trend,which concludes that the Philippines logistics industry has not achieved its objective in promoting a sustainable development trend of green total factor productivity.(3)The green technology efficiency of Philippine logistics industry showed a favourable performance in the sample period and indicates an overall growth trend,which can play a certain role in promoting the development of green total factor productivity of Philippine logistics industry.