Over Land and Over Sea: Domestic Trade Frictions in the Philippines

Eugenia Go ()
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Eugenia Go: Asian Development Bank

No 611, ADB Economics Working Paper Series from Asian Development Bank

Abstract: We create two novel datasets—the starting dates of Roll-On Roll-Off Terminal System (RRTS) service by route, and interprovincial land trade—to evaluate the effects of the RRTS on agricultural trade costs within the Philippines as measured by border effects. We find province border effects to be substantial in the Philippines, with a typical province trading 28–53 times more with itself than with other provinces. The RRTS reduced this by a factor of 0.65. This is confirmed by increased trade flows, with RRTS province pairs trading 36%–42% more on average compared to similar unconnected province pairs. However, the border effect reduction is unevenly distributed and tends to be limited to provinces near the biggest demand center.

Keywords: border effects; domestic trade; trade costs (search for similar items in EconPapers)
JEL-codes: F14 O18 Q10 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2020-02-28
New Economics Papers: this item is included in nep-int and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ris:adbewp:0611

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