Revisiting LPI Index in Regionally Polarized Economies: Comparative Study for Russia and Kazakhstan

Abstract :

The paper evaluates LPI index regarding the situation in Russian and Kazakhstan regions on a sample of 3 Kazakh and 6 Russian regions. The research indicates that LPI index is reflecting the general trend of country development; however, in case of institutionally underdeveloped countries the regional aspect remains unrepresented – and in many cases the situation in the regions can differ significantly, thus producing the distorted picture of logistics in the country. Second, the reason for regional bias in LPI index is spatial polarization of the countries. Our research revealed high differentiation of indicators in case of lower end of LPI ranking (average and below), which can be explained by uneven income and trade distribution between regions. As a results a weighted approach to LPI index calculation was proposed.