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An Impact Analysis of Logistics Accessibility Improvements on the Productivity of Manufacturing Sectors

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  • Hidekazu Itoh

    (Kwansei Gakuin University)

Abstract

This study constructs a theoretical production function that incorporates logistics accessibility and analyzes the economic impacts of improvements in freight transport for a regional economy. Using panel data between 1995 and 2010 for Japan, we evaluate the impacts of interregional logistics accessibility, or inbound (outbound) shipping of intermediate (final) goods, on production activity. The results show that the production function has increasing returns to scale, which positively affects production activity, regarding logistics accessibility. In addition, the estimated elasticity of transportation costs changes; that is, logistics improvements in procurements (sales) decrease (increase) with time. Furthermore, the impacts of cost improvements on production activity differ across manufacturing sectors. This empirical analysis supports the logistics strategies of transportation efficiency and relocation of factories and warehouses in manufacturing sectors. In accordance with the Weber location-production problem, this empirical analysis supports production-oriented location for input goods and market-oriented location for output goods.

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  • Hidekazu Itoh, 2014. "An Impact Analysis of Logistics Accessibility Improvements on the Productivity of Manufacturing Sectors," Post-Print hal-01015725, HAL.
    • Handle: RePEc:hal:journl:hal-01015725
    Note: View the original document on HAL open archive server: https://hal.science/hal-01015725
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    References listed on IDEAS

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    1. Yamaguchi, Katsuhiro, 2007. "Inter-regional air transport accessibility and macro-economic performance in Japan," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 43(3), pages 247-258, May.
    2. Maurseth, Per Botolf, 2001. "Convergence, geography and technology," Structural Change and Economic Dynamics, Elsevier, vol. 12(3), pages 247-276, September.
    3. Taotao Deng, 2013. "Impacts of Transport Infrastructure on Productivity and Economic Growth: Recent Advances and Research Challenges," Transport Reviews, Taylor & Francis Journals, vol. 33(6), pages 686-699, November.
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    Cited by:

    1. Barilla, David & Carlucci, Fabio & Cirà, Andrea & Ioppolo, Giuseppe & Siviero, Lucio, 2020. "Total factor logistics productivity: A spatial approach to the Italian regions," Transportation Research Part A: Policy and Practice, Elsevier, vol. 136(C), pages 205-222.
    2. César Ducruet & Hidekazu Itoh, 2016. "Regions and material flows: investigating the regional branching and industry relatedness of port traffics in a global perspective," Journal of Economic Geography, Oxford University Press, vol. 16(4), pages 805-830.

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