IDEAS home Printed from https://ideas.repec.org/p/ris/adbewp/0611.html
   My bibliography  Save this paper

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

Author

Listed:
  • Go, Eugenia

    (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.

Suggested Citation

  • Go, Eugenia, 2020. "Over Land and Over Sea: Domestic Trade Frictions in the Philippines," ADB Economics Working Paper Series 611, Asian Development Bank.
    • Handle: RePEc:ris:adbewp:0611
    as

    Download full text from publisher

    File URL: https://www.adb.org/publications/over-land-over-sea-trade-frictions-philippines
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Tomas Havranek & Zuzana Irsova, 2017. "Do Borders Really Slash Trade? A Meta-Analysis," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 65(2), pages 365-396, June.
    2. Maria Erlinda M. Mutuc & Suwen Pan & Roderick M. Rejesus, 2007. "Household vegetable demand in the Philippines: Is there an urban-rural divide?," Agribusiness, John Wiley & Sons, Ltd., vol. 23(4), pages 511-527.
    3. Holger C. Wolf, 2000. "Intranational Home Bias In Trade," The Review of Economics and Statistics, MIT Press, vol. 82(4), pages 555-563, November.
    4. David Hummels & Volodymyr Lugovskyy, 2006. "Are Matched Partner Trade Statistics a Usable Measure of Transportation Costs?," Review of International Economics, Wiley Blackwell, vol. 14(1), pages 69-86, February.
    5. Fally, Thibault & Paillacar, Rodrigo & Terra, Cristina, 2010. "Economic geography and wages in Brazil: Evidence from micro-data," Journal of Development Economics, Elsevier, vol. 91(1), pages 155-168, January.
    6. Eaton, Jonathan & Kortum, Samuel & Neiman, Brent, 2016. "Obstfeld and Rogoff׳s international macro puzzles: a quantitative assessment," Journal of Economic Dynamics and Control, Elsevier, vol. 72(C), pages 5-23.
    7. Russell Hillberry & David Hummels, 2003. "Intranational Home Bias: Some Explanations," The Review of Economics and Statistics, MIT Press, vol. 85(4), pages 1089-1092, November.
    8. Gilberto M. Llanto & Enrico L. Basilio & Leilanie Basilio, 2005. "Competition Policy and Regulation in Ports and Shipping," Development Economics Working Papers 22648, East Asian Bureau of Economic Research.
    9. Llanto, Gilberto M. & Basilio, Leilanie Q. & Basilio, Enrico L., 2005. "Competition Policy and Regulation in Ports and Shipping," Discussion Papers DP 2005-02, Philippine Institute for Development Studies.
    10. Llanto, Gilberto M. & Basilio, Leilanie Q. & Basilio, Enrico L., 2007. "Competition Policy and Regulation in Ports and Shipping," Research Paper Series RPS 2007-04, Philippine Institute for Development Studies.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Eugenia Go, 2022. "Overland and Oversea: Domestic Trade Frictions in the Philippines," Asian Development Review (ADR), World Scientific Publishing Co. Pte. Ltd., vol. 39(02), pages 75-118, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Eugenia Go, 2020. "Trade implications of transport cost in the Philippines," Economics PhD Theses 0320, Department of Economics, University of Sussex Business School.
    2. Cletus C. Coughlin & Dennis Novy, 2021. "Estimating Border Effects: The Impact Of Spatial Aggregation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 62(4), pages 1453-1487, November.
    3. Eugenia Go, 2022. "Overland and Oversea: Domestic Trade Frictions in the Philippines," Asian Development Review (ADR), World Scientific Publishing Co. Pte. Ltd., vol. 39(02), pages 75-118, September.
    4. Eugenia C. Go, 2018. "Over Land and Over Sea: Domestic Trade Frictions in the Philippines," Working Paper Series 1418, Department of Economics, University of Sussex Business School.
    5. Agnosteva, Delina E. & Anderson, James E. & Yotov, Yoto V., 2019. "Intra-national trade costs: Assaying regional frictions," European Economic Review, Elsevier, vol. 112(C), pages 32-50.
    6. Cletus C. Coughlin & Dennis Novy, 2013. "Is the International Border Effect Larger than the Domestic Border Effect? Evidence from US Trade," CESifo Economic Studies, CESifo Group, vol. 59(2), pages 249-276, June.
    7. Gilberto Llanto & Eduardo Gonzalez, 2006. "Policy Reforms and Institutional Weaknesses : Closing the Gap," EABER Working Papers 21824, East Asian Bureau of Economic Research.
    8. Francisco, Kris A. & Tanaka, Makoto, 2019. "Does public infrastructure affect human capital? The effect of improved transport connectivity on children's education in the Philippines," Economics of Education Review, Elsevier, vol. 73(C).
    9. Thi Mai Phuong, Chu & Tu, Thuy Anh, 2014. "On the border effect in the Regional Comprehensive Economic Partnership (RCEP)," Papers 910, World Trade Institute.
    10. Rafaelita M. Aldaba, 2010. "ERIA Study to Further Improve the ASEAN Economic Community Scorecard : the Philippines," Governance Working Papers 23102, East Asian Bureau of Economic Research.
    11. Yoto V. Yotov, 2021. "The Variation of Gravity within Countries (or 15 Reasons Why Gravity Should Be Estimated with Domestic Trade Flows)," CESifo Working Paper Series 9057, CESifo.
    12. Llanto, Gilberto M. & Navarro, Adoracion M., 2012. "The Impact of Trade Liberalization and Economic Integration on the Logistics Industry: Maritime Transport and Freight Forwarders," Discussion Papers DP 2012-19, Philippine Institute for Development Studies.
    13. Llanto, Gilberto M. & Quimba, Francis Mark A. & Sombilla, Mercedita A., 2012. "Interregional Trade of High-value Fruits and Vegetables: Issues on Transport and Shipping," Discussion Papers DP 2012-08, Philippine Institute for Development Studies.
    14. repec:phd:pjdevt:pjd_2008_vol__xxxv_no__2-d is not listed on IDEAS
    15. Larch, Mario & Tan, Shawn W. & Yotov, Yoto V., 2023. "A simple method to ex-ante quantify the unobservable effects of trade liberalization and trade protection," Journal of Comparative Economics, Elsevier, vol. 51(4), pages 1200-1213.
    16. Delina E. Agnosteva & James E. Anderson & Yoto V. Yotov, 2014. "Intra-national Trade Costs: Measurement and Aggregation," NBER Working Papers 19872, National Bureau of Economic Research, Inc.
    17. Patalinghug, Epictetus, 2015. "Supply Chain Connectivity: Enhancing Participation in the Global Supply Chain," Discussion Papers DP 2015-14, Philippine Institute for Development Studies.
    18. Briones, Roehlano M., 2009. "Agricultural Diversification and the Fruits and Vegetables Subsector: Policy Issues and Development Constraints in the Philippines," Discussion Papers DP 2009-02, Philippine Institute for Development Studies.
    19. Eugenia C. Go, 2020. "Mind the Gap: Trade Costs and Markups in the Philippines," Working Paper Series 1820, Department of Economics, University of Sussex Business School.
    20. Hayakawa, Kazunobu, 2017. "Domestic and international border effects: The cases of China and Japan," China Economic Review, Elsevier, vol. 43(C), pages 118-126.
    21. Eugenia C. Go, 2021. "Trade costs and patterns of trade in the Philippines," Working Paper Series 0421, Department of Economics, University of Sussex Business School.

    More about this item

    Keywords

    border effects; domestic trade; trade costs;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:adbewp:0611. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Orlee Velarde (email available below). General contact details of provider: https://edirc.repec.org/data/eradbph.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.