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

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  • Hayakawa, Kazunobu
  • Tanaka, Kiyoyasu
  • Ueki, Yasushi

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.

Suggested Citation

  • Hayakawa, Kazunobu & Tanaka, Kiyoyasu & Ueki, Yasushi, 2011. "Transport modal choice by multinational firms : firm-level evidence from Southeast Asia," IDE Discussion Papers 318, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper318
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    References listed on IDEAS

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    Cited by:

    1. Bianka Dettmer & Andreas Freytag & Peter Draper, 2013. "Check-in, departure and arrival times: Air cargo in Southern Africa?," Jena Economics Research Papers 2013-018, Friedrich-Schiller-University Jena.
    2. repec:ptu:bdpart:r202401 is not listed on IDEAS
    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

    Keywords

    International business enterprises; Industrial management; Transportation; Costs; Southeast Asia; Transport mode; Logistics; Multinational firms; Multinomial logit;
    All these keywords.

    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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