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Interregional Trade of High-value Fruits and Vegetables: Issues on Transport and Shipping

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Author Info

  • Llanto, Gilberto M.
  • Quimba, Francis Mark A.
  • Sombilla, Mercedita A.
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    Abstract

    The study focuses on the transport of vegetable and fruit produce from Mindanao, a major food producing area, to particular regions in Luzon and Visayas to meet increasing market demands. The estimated gravity model showed the key determinants of interregional trade. Economic growth in both sending and recipient regions is necessary for interregional trade to flourish. Economic growth and interregional trade are anchored on access to markets by various economic agents, which is facilitated by the presence of hard and soft infrastructure that make interregional exchange possible. Because distance drives up transport and marketing costs, the necessity of a good network of roads and ports that links production areas to consumer markets cannot be underestimated. The lack of an efficient transport and distribution system increases the cost of transporting agricultural produce, reduces the quality and quantity of those goods, and diminishes the profitability of actors involved in the supply chain. Inadequacy of infrastructure has been a major reason for the country`s lack of competitiveness and attraction as a viable and profitable business destination. There is a scope for government intervention at two levels. At the macro level, government has a critical role to play in increasing investments in roads and ports, portside facilities, and related investments; in improving monitoring and coordination of markets; and in ensuring effective regulation at the national and local level.

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    File URL: http://serp-p.pids.gov.ph/serp-p/download.php?d=5071&s=3
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    Bibliographic Info

    Paper provided by Philippine Institute for Development Studies in its series Discussion Papers with number DP 2012-08.

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    Length: 76
    Date of creation: 2012
    Date of revision:
    Handle: RePEc:phd:dpaper:dp_2012-08

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    Related research

    Keywords: interregional trade; Philippines; supply chain; logistics; transport; gravity model; shipping;

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    1. Zwinkels, Remco C.J. & Beugelsdijk, Sjoerd, 2010. "Gravity equations: Workhorse or Trojan horse in explaining trade and FDI patterns across time and space?," International Business Review, Elsevier, vol. 19(1), pages 102-115, February.
    2. 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.
    3. CĂ©line CARRERE, 2003. "Revisiting the Effects of Regional Trading Agreements on trade flows with Proper Specification of the Gravity Model," Working Papers 200310, CERDI.
    4. 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.
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