Transportation costs in archipelagos: evidence from Indonesia

Kazunobu Hayakawa, Isono Ikumo and Kumagai Satoru

No 756, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: In this paper, we empirically examine 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 costly than land transportation. For example, a 1% increase in distance in maritime and land transportation increases a product price 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 single-island countries; in this sense, archipelagic countries have a topographical disadvantage.

Keywords: Price; Indonesia; Transport; Transportation (search for similar items in EconPapers)
JEL-codes: F15 F53 (search for similar items in EconPapers)
Date: 2019-04
References: Add references at CitEc
Citations:

Published in IDE Discussion Paper = IDE Discussion Paper, No. 756. 2019-04

Downloads: (external link)
https://ir.ide.go.jp/record/50870/files/IDP000756_001.pdf First version, 2019 (application/pdf)

Related works:
Journal Article: Transportation Costs in Archipelagos: Evidence from Indonesia (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jet:dpaper:dpaper756

Ordering information: This working paper can be ordered from
Publication Office, IDE 3-2-2 Wakaba, Mihama-ku, Chiba-shi, Chiba 261-8545 JAPAN
http://www.ide.go.jp/English/Publish/Order

Access Statistics for this paper

More papers in IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO) Contact information at EDIRC.
Bibliographic data for series maintained by Michitaka Imamitsu ().