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

Eugenia Go ()
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Eugenia Go: Department of Economics, University of Sussex, Brighton, UK

Working Paper Series from Department of Economics, University of Sussex Business School

Abstract: This paper evaluates the effects of the introduction of Roll-On Roll-Off (RORO) Terminal System (RRTS) on agricultural trade and on provincial trade frictions within the Philippines. To do so, two datasets are created: (i) the starting dates of RORO services by route; and (ii) intra-provincial trade by product. Results suggest that provinces linked by RRTS increased trade by 35% compared with unconnected provinces. At the same time, RRTS is associated with an average reduction of province trade frictions. However, the distribution of gains among provinces is highly uneven and may have exacerbated pre-existing trade imbalances.

Keywords: trade costs; domestic trade (search for similar items in EconPapers)
JEL-codes: F10 F14 R28 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-sea
Date: 2018-07
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Persistent link: https://EconPapers.repec.org/RePEc:sus:susewp:1418

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