Transportation Costs in Archipelagos
Evidence from Indonesia
Bibliographic Data
| ID | 21310490 |
|---|---|
| Authors | Kazunobu Hayakawa (0000-0003-0032-9060, Development Studies Center Institute of Developing Economies, JETRO Chiba Japan, corresponding author), Ikumo Isono (Development Studies Center Institute of Developing Economies, JETRO Chiba Japan), Satoru Kumagai (Development Studies Center Institute of Developing Economies, JETRO Chiba Japan) |
| Year | 2020 |
| Volume | 58 |
| Issue | 3 |
| Pages | 227-241 |
| Publication date | 2020-09-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Developing Economies (JOURNAL) |
| Journal identifiers | ISSN: 0012-1533 • E-ISSN: 1746-1049 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/deve.12249 |
| OpenAlex | W2945494600 |
| Language | EN |
| References cited | 16 |
This paper empirically examines the effects of domestic transportation costs on product prices in an archipelagic country, namely, Indonesia. Specifically, we investigate the province‐level price of televisions. Our analysis reveals that maritime transportation is more expensive than land transportation. For example, a 1% increase in distance in maritime and land transportation increases the price of televisions by 0.08% and 0.02%, respectively. This result implies that the geographical concentration or agglomeration of industries is much costlier in archipelagic countries. In other words, enjoying agglomeration effects is more difficult for archipelagic countries compared with countries on a continent; thus, archipelagic countries have a topographical disadvantage
Archipelagic state · Archipelago · Business · Economic growth · Economics · Economies of agglomeration · Economy · Geography · International trade · Product (mathematics) · Economic Zones and Regional Development · Fiscal Policy and Economic Growth · Global trade and economics
| Highly cited | No |
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