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Impact of transportation costs and infrastructure quality on Indonesian imports

Author

Listed:
  • Tanti Novianti
  • Yusman Syaukat
  • Mangara Tambunan
  • Pantjar Simatupang

    (Faculty of Economics and Management Bogor Agricultural University
    Faculty of Economics and Management Bogor Agricultural University
    Faculty of Economics and Management Bogor Agricultural University
    Kementerian Pertanian Republik Indonesia)

Abstract

This article investigates the impact of sea and air transportation cost, as well as infrastructure quality, to Indonesia?s import. Employing a panel regression model to seek for the answer, the paper find that cost reduction for sea transportation has greater impact on the Indonesia?s import volume compared to the air transportation. This paper also finds that Indonesia?s infrastructure quality has a significant positive impact on Indonesia?s import. The quality of ports, roads, and Linear Connectivity International Shipping (LSCI) are significant factors affecting import volume by sea transportation mode. Meanwhile, import volume by air transportation is significantly affected by the quality of the roads and airports.

Suggested Citation

  • Tanti Novianti & Yusman Syaukat & Mangara Tambunan & Pantjar Simatupang, 2013. "Impact of transportation costs and infrastructure quality on Indonesian imports," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 5(2), pages 81-91, April.
    • Handle: RePEc:uii:journl:v:5:y:2013:i:2:p:81-91
    DOI: http://dx.doi.org/10.20885/ejem.vol5.iss2.art1
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    References listed on IDEAS

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    More about this item

    Keywords

    Transportation costs; sea and air transportation infastructure qualities; volume of import;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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