Transportation Mode Choice and International Fragmentation of Production: Evidence from a Developing Country

TÜRKCAN K., Saygılı H.

International Economic Journal, cilt.35, sa.1, ss.46-72, 2021 (ESCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 35 Sayı: 1
  • Basım Tarihi: 2021
  • Doi Numarası: 10.1080/10168737.2020.1870522
  • Dergi Adı: International Economic Journal
  • Derginin Tarandığı İndeksler: Emerging Sources Citation Index (ESCI), Scopus, International Bibliography of Social Sciences, Periodicals Index Online, Business Source Elite, Business Source Premier, EconLit, PAIS International
  • Sayfa Sayıları: ss.46-72
  • Anahtar Kelimeler: Mode of transportation, fragmentation of production, global production networks, international trade, Turkey, F14, L91, R41, TRADE, COSTS, INFRASTRUCTURE, GLOBALIZATION, DETERMINANTS, DISTANCE
  • Akdeniz Üniversitesi Adresli: Evet

Özet

© 2021 Korea International Economic Association.The objective of this study is to analyze the effects of fragmentation of production measured by the parts and components trade on the choice of transportation mode including air, sea and road. The paper attempts to account for the advantages and disadvantages of alternative transportation modes in short-, medium- and long-distance trade. Using a detailed data set (Harmonized System12-digit product level statistics for the period 2006–2014 and 143 countries) of Turkey’s machinery exports, we show that fragmentation of production plays a significant role in the selection of the transportation mode. In particular, road transportation with good infrastructure is a significant trade facilitating mode of transportation for nearby trade partners when trade involves P&C and bulky products.

The objective of this study is to analyze the effects of fragmentation of production measured by the parts and components trade on the choice of transportation mode including air, sea and road. The paper attempts to account for the advantages and disadvantages of alternative transportation modes in short-, medium- and long-distance trade. Using a detailed data set (Harmonized System12-digit product level statistics for the period 2006–2014 and 143 countries) of Turkey’s machinery exports, we show that fragmentation of production plays a significant role in the selection of the transportation mode. In particular, road transportation with good infrastructure is a significant trade facilitating mode of transportation for nearby trade partners when trade involves P&C and bulky products.