Transport Modal Choice by Multinational Firms: Firm-level Evidence from Southeast Asia

Kazunobu Hayakawa, Kiyoyasu Tanaka and Yasushi Ueki

International Economic Journal, 2013, vol. 27, issue 4, 609-623

Abstract: We examine transport-mode decisions by multinational firms to shed light on the role of freight logistics in multinational activity. Using a firm-level survey in Southeast Asia, we show that foreign ownership has a significantly positive and quantitatively large impact on the likelihood that air/sea transportation is chosen relative to truck shipping. This result is robust to the shipping distance, cross-border freight, and transport infrastructure. Both foreign-owned exporters and importers also tend to use air/sea transportation. Thus, our analysis presents a new distinction between multinational and domestic firms in their decision over transport modes.

Date: 2013
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Working Paper: Transport modal choice by multinational firms: firm-level evidence from Southeast Asia (2011)
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DOI: 10.1080/10168737.2012.719920

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