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Transport modal choice by multinational firms: firm-level evidence from Southeast Asia

Kazunobu Hayakawa (), Kiyoyasu Tanaka () and Yasushi Ueki ()

No 318, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: We examine transport modal decision 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.

Keywords: International business enterprises; Industrial management; Transportation; Costs; Southeast Asia; Transport mode; Logistics; Multinational firms; Multinomial logit (search for similar items in EconPapers)
JEL-codes: F15 F23 R41 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-cse, nep-dcm, nep-sea and nep-ure
Date: 2011-11-01
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Published in IDE Discussion Paper = IDE Discussion Paper, No. 318. 2011-11-01

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Journal Article: Transport Modal Choice by Multinational Firms: Firm-level Evidence from Southeast Asia (2013) Downloads
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