Transitive Role of Digitalization on the Link Between Sustainable Development and Logistics Performance

This research empirically explores how logistics performance influences sustainable progress, positioning digitalization as a pivotal threshold that alters regime-specific outcomes. Drawing on yearly panel data from 49 countries spanning 2007 to 2023, the study employs a dynamic panel threshold approach to address issues such as reverse causality, correlated errors across units, and persistent patterns of sustainability. A unified digitalization score is derived from five World Bank tech metrics, with sustainability gauged through the SDG Index and a robust eco-efficiency alternative. Key findings reveal a marked non-linear pattern: When digitalization remains below approximately 36.8, better logistics scores negatively impact sustainability, mirroring the drawbacks of conventional, high-resource supply systems. Once past this mark, the impact turns strongly positive, demonstrating how advanced tools boost energy savings, cut pollution, and foster cleaner logistics networks. Additional drivers such as institutional strength, clean energy sources, natural land cover, and inbound foreign capital amplify these gains. The evidence suggests that upgrading logistics performance is insufficient without corresponding advances in technology and governance. This work provides fresh quantitative insights to the field and offers practical guidance on integrating digital shifts into eco-conscious logistics, in a manner that is aligned with and supportive of the core objectives of SDG 8, SDG 9, SDG 13, and SDG 17.