Determinants of green logistics in BRICS countries: An integrated supply chain model for green business

Abstract

The objective of the study is to identify the main determinants of integrated supply chain management for green business growth, controlling socio-economic and environmental factors for BRICS countries, using a time series data from 1995-2015. The results show the positive relationship between green logistics indices and country’s per capita income, which confirmed that supply chain management is integrated with country’s economic growth and corporate environmental policies that is imperative for sustained payoffs. On the other side, logistics indices linked with high mass carbon emissions, social factors, and trade openness, which need sustainable cleaner instruments for achieving broad-based growth. The results of panel causality confirmed the two-way linkages between country’s per capita income and logistic indices, and socio-economic factors and logistics indices, while there is one –way causal relationship running from carbon-fossil emissions to logistics indices across countries. The study confirmed the ‘neutrality hypotheses’ in between FDI, trade, and logistics indices during a given time period. The overall results emphasized the need of an integrated supply chain model to support environmental sustainability agenda and provoked for ‘go-for-green’ business.