The impacts of the marine transportation openness policies against the transportation costs

Abstract

Transportation costs are the driving factors of the world trade growth, lower transportation costs can increase the competitiveness of a commodity. With the openness of the transportation services sector, transportation costs due to the removal of tariff and non-tariff barriers will be lower. Some of the commodities exported and imported by Indonesia are farm commodities thus how the policies influence their transportation cost needs to be known. Analysis was performed using the 2010 cross section data of 15 countries. The analysis result indicated that the transport services sector openess did influence the transport costs of imports yet it didn’t significantly influence the export transport costs.