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Directional imbalance of freight rates : evidence from Japanese inter-prefectural data

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  • Tanaka, Kiyoyasu
  • Tsubota, Kenmei

Abstract

By analyzing a comprehensive dataset on transport transactions in Japan, we describe a directional imbalance in freight rates by transport mode and examine its potential sources, such as economies of density and directionally imbalanced transport flow. There are certain numbers of observed links which show asymmetric transport costs. Instrumental variable analysis is used to show that economies of density account for deviation from symmetric freight rates between prefectures. Our results show that a 10% increase in outbound transport flow relative to inbound transport flow leads to a 2.1% decrease in outbound freight rate relative to inbound freight rate.

Suggested Citation

  • Tanaka, Kiyoyasu & Tsubota, Kenmei, 2014. "Directional imbalance of freight rates : evidence from Japanese inter-prefectural data," IDE Discussion Papers 441, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper441
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    References listed on IDEAS

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    Cited by:

    1. Tsubota, Kenmei, 2015. "Agglomeration and directional imbalance of freight rates : the role of density economies in the transport sector," IDE Discussion Papers 488, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    2. Francesco Di Comite, 2018. "Transport liberalization and regional imbalances with endogenous freight rates," JRC Research Reports JRC92386, Joint Research Centre.
    3. Martin Koning & François Combes & Raphael Piendl & Gernot Liedtke, 2018. "Transferability of models for logistics behaviors: A cross-country comparison between France and Germany for shipment size choice [La transférabilité des modèles de comportements logistiques : Une ," Post-Print hal-01916081, HAL.
    4. Xu, Hangtian & Itoh, Hidekazu, 2016. "Density economies and transport geography: Evidence from the container shipping industry," MPRA Paper 75580, University Library of Munich, Germany.
    5. Xu, Hangtian & Itoh, Hidekazu, 2018. "Density economies and transport geography: Evidence from the container shipping industry," Journal of Urban Economics, Elsevier, vol. 105(C), pages 121-132.
    6. Charlotte Emlinger & Amélie Guillin, "undated". "Cheaper and Faster: The Role of Air Services Agreements on Transportation," Working Papers 2023-17, CEPII research center.

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    More about this item

    Keywords

    Japan; Transportation; Costs; Economic geography; Freight rates; Directional imbalance; Economies of density;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
    • 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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