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The Trade Impact of Enhanced Multimodal Connectivity in the Asia-Pacific Region

Author

Listed:
  • Shepherd, Ben

    (Developing Trade Consultants Ltd)

  • B. Serafica, Ramonette

    (Australia Indonesia Partnership for Economic Governance)

Abstract

This paper develops new measures of multimodal transport connectivity, and uses a gravity model to show that improving performance could lead to major trade gains for the Asia-Pacific region. By improving multimodal connectivity by 5%, APEC would increase exports by around 4%, or between 2% and 6% per member economy. In dollar terms, this equates to an impact gain of $500bn in total, or between $850m and $115bn per member economy. Economies that are open, highly integrated into world markets, and with strong connectivity baselines stand to gain the most. We also find that of the elements of multimodal transport connectivity, it is logistics services performance that generally has the strongest effect on trade.

Suggested Citation

  • Shepherd, Ben & B. Serafica, Ramonette, 2011. "The Trade Impact of Enhanced Multimodal Connectivity in the Asia-Pacific Region," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 26, pages 624-650.
    • Handle: RePEc:ris:integr:0552
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    Citations

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    Cited by:

    1. Dettmer, Bianka & Freytag, Andreas & Draper, Peter, 2014. "Air Cargo beyond Trade Barriers in Africa," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 29, pages 95-138.
    2. Tsekeris, Theodore, 2014. "Multi-sectoral interdependencies of regional public infrastructure investments," Socio-Economic Planning Sciences, Elsevier, vol. 48(4), pages 263-272.
    3. Wang, Chao & Lim, Ming K. & Zhang, Xinyi & Zhao, Longfeng & Lee, Paul Tae-Woo, 2020. "Railway and road infrastructure in the Belt and Road Initiative countries: Estimating the impact of transport infrastructure on economic growth," Transportation Research Part A: Policy and Practice, Elsevier, vol. 134(C), pages 288-307.

    More about this item

    Keywords

    International trade; Transport; Logistics; Asia-Pacific;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

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