CONFIRMATORY FACTOR ANALYSIS FOR THE INFRASTRUCTURE DIMENSION OF LOGISTICS PERFORMANCE INDEX: CASE OF SRI LANKA

Sri Lanka has initiated major development programmes over the years to enrich its trade facilitation. Out of all, one of the main objectives is to transform Sri Lanka into a logistics hub to smoothly operate international trade. The perspective of the logistics sector in introducing such programmes is helpfulin planning and finalizing development policies. Potential investors investigate LPI as a multi-dimensional indicator before placing investment decisions.When compared to other competing countries in the region, the LPI scores of Sri Lanka have not been satisfactory.Quality of trade and transport related infrastructure dimension is underperforming since 2007.In that scenario, it is a contemporary requirement to evaluate the logistics performance index and test the construct validity of the index in Sri Lanka.Therefore, the objective of this research was to conduct a confirmatory factor analysis for the infrastructure dimension of logistics performance index based on Sri Lanka. The results were grounded on a questionnairesurveyfrom a sample of 60 industry professionals from 20 freight forwarding companies.The date collection was limited to registered freight forwarding companies atthe Sri Lanka Freight Forwarders Association.The indicators of each dimension of the infrastructure dimension of LPI was verified through a Confirmatory Factory Analysis using IBM SPSS Amos. The study confirms the construct validity of the infrastructure dimension and the results were in consistent with the conceptual framework of LPI.