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Empirical Examination on the Scale Economies of the Third-party Logistics |
CHEN Wei-ya CHEN Zhi-ya ZHOU Wei-li |
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Abstract This paper builds a computational model for scale economies problem of the third-party logistics (3PL) by introducing Trans-log cost function (TCF), and estimates the economies of scale and the effect of technical progress in Chinese 3PL (1999~2007) by making use of SUR method. The empirical results show that, as a whole, there exist slight scale diseconomies in the 3PL enterprises under investigation; but from the aspects of three different transport mode used by the 3PL, scale economy exists in those logistics enterprises by sea and by railway except by air. Meanwhile, this paper introduces the value of T which represents the technology progress into the model, the result of which shows that technology progress can reduce 3PL cost, which is especially the case with railway logistics enterprises.
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Received: 10 July 2008
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Corresponding Authors:
CHEN Zhi-ya
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