Any country's economy depends on effective logistics to maintain the seamless flow of information and products that support commerce and development. This paper aims to review the related literature to identify the research gaps and potential research directions in this area which helps to formulate a logistics problem at the national level. This research explores the macro and microeconomic factors that affect a country to shape a nation’s logistics environment through the use of systems dynamics modeling (SDM). The study combines macro factors like GDP, FDI and infrastructure development with micro factors like inventory management practices, warehouse capacity and transportation costs. This study will allow decision-makers to make valuable decisions in logistic investments and policymaking