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

Hayakawa, Kazunobu

Transport modal choice by multinational firms: firm-level evidence from Southeast Asia created by Kazunobu Hayakawa, Kiyoyasu Tanaka, and Yasushi Ueki - International economic journal Volume 27, number 4 .

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.

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International business enterprises--Transportation, Costs, Transport mode, Multinomial logit--Southeast Asia--Industrial management

HB1A1 INT