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Transport Modal Choice by Multinational Firms: Firm-level Evidence from Southeast Asia

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  • Kazunobu Hayakawa
  • Kiyoyasu Tanaka
  • Yasushi Ueki

Abstract

We examine transport-mode decisions 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.

Suggested Citation

  • Kazunobu Hayakawa & Kiyoyasu Tanaka & Yasushi Ueki, 2013. "Transport Modal Choice by Multinational Firms: Firm-level Evidence from Southeast Asia," International Economic Journal, Taylor & Francis Journals, vol. 27(4), pages 609-623, December.
    • Handle: RePEc:taf:intecj:v:27:y:2013:i:4:p:609-623
    DOI: 10.1080/10168737.2012.719920
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    2. João Amador & Carlos Melo Gouveia & Ana Catarina Pimenta, . "Transport modes in Portuguese international trade: Insights from firm-level data," Economic Bulletin and Financial Stability Report Articles and Banco de Portugal Economic Studies, Banco de Portugal, Economics and Research Department.
    3. Verena Maria Stockhammer & Sarah Pfoser & Karin Markvica & Jürgen Zajicek & Matthias Prandtstetter, 2021. "Behavioural Biases Distorting the Demand for Environmentally Friendly Freight Transport Modes: An Overview and Potential Measures," Sustainability, MDPI, vol. 13(21), pages 1-34, October.

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    More about this item

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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