Economic Factors Influencing City Logistics Demand in China

This paper seeks to propose a conceptual structural equation model to investigate the relationships between economic factors and city logistics demand including demand volume and demand quality and to demonstrate their direct and indirect effects on each other. An empirical study was conducted in 120 cities in China and the collected survey data was used to verify the relationships expressed in the proposed structural equation model. The results show that three hypothesis are supported significantly. It can be concluded that both economic factors and demand quality influences demand volume significantly while industrial added value and gross domestic production have more significant impact on city logistics demand.