 Overland and Oversea: Domestic Trade Frictions in the PhilippinesEugenia Go () Asian Development Review (ADR), 2022, vol. 39, issue 02, 75-118 Abstract: Domestic trade costs are anecdotally high in the Philippines, and yet a systematic and spatially comparable metric of trade costs is unavailable. This paper fills this gap by estimating province border effects, or a province’s tendency to trade with itself rather than with other provinces. Subsequently, the effects of a maritime transport program based on roll-on roll-off (RORO) ships on province border effects are assessed. Using two novel datasets—the starting dates of RORO shipping services by route, and the intraprovince trade of agricultural products—this study finds that province border effects are substantial, with a typical province trading 51 times more with itself than with other provinces. The RORO transport program is associated with an average reduction of 35% of this home province bias. However, the border effect reductions are unevenly distributed, with the largest reductions concentrated in provinces near the biggest demand centers. Keywords: border effects; domestic trade; intranational trade; trade costs (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:wsi:adrxxx:v:39:y:2022:i:02:n:s0116110522500123 Ordering information: This journal article can be ordered from DOI: 10.1142/S0116110522500123 Access Statistics for this article Asian Development Review (ADR) is currently edited by Tetsushi Sonobe More articles in Asian Development Review (ADR) from World Scientific Publishing Co. Pte. Ltd. |
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