This study aims to evaluate the capabilities of port logistics (port logistics demand, port logistics supply, port logistics effect) among five Chinese coastal port clusters. Since the measurement of unobservable variables has recently gained increasing attention in terms of port logistics capability, econometric aspects are sought for the purpose of building a structural equation model (SEM). The SEM can employ multiple indexes to reflect unobservable variables (latent variables) and provide a method for processing measurement error. The SEM can also estimate the relationships amongst model factors more accurately than other mathematical methods. The construction of a hypothesized model proves to fit the port logistics area very well. The findings of this study reveal the restrictive factors on port logistics development and provide port builders and managers with scientific and policy guidance. In addition, this paper presents a tutorial on the application of the SEM and offers port logistics researchers a better understanding of the application of this useful statistical modeling technique.
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