Does logistics performance foster sustainable development? A moderated mediation effect

PurposeThis research investigates the moderating role of tariffs on the indirect relationship between the logistics performance index (LPI) and workers' overall wages, specifically male and female wages through trade openness (TO). These wage metrics are proxies for assessing progress towards Sustainable Development Goal SDG-8.5.Design/methodology/approachUtilising a global dataset encompassing 168 economies from 2007 to 2018, the analysis employs a mediation effect analysis methodology to scrutinise the interconnectedness among LPI, TO, SDG and tariffs.FindingsThe findings reveal that LPI indirectly influences SDG-8.5 commitments of countries through their degree of TO. Moreover, the moderated mediation analysis elucidates that tariffs play a moderating role in the relationship between LPI and TO. However, the investigation finds no significant link between LPI and the wages of female workers, indicating a sub-component of SDG-8.5.Research limitations/implicationsThis study significantly contributes to the existing literature on international development by elucidating the mechanisms and conditional factors through which logistics services can address the gender pay gap, as male workers' wages predominantly drive the nexus, thereby advancing the fulfilment of the United Nations 2030 Agenda for Sustainable Development Goals.Originality/valueThis study utilises transaction cost theory and resource-based view theory and combines them with Okun's Law and the Law of the wage curve to test the role of LPI as a source of competitive advantage in enhancing SDG-8.5 while taking into consideration TO and tariffs. This will help in extending both theories and enhance the understanding of their applicability worldwide.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-05-2024-0392