A study on the contribution of roll-on/roll-off transport system (RORO) on inter-regional trade and regional industrialization
Date
2009-10
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Abstract
An efficient and adequate transportation system is an indispensable attribute of a strong economy. The Philippines, being an archipelago, requires an efficient water transportation in order to unite its islands and to achieve a nationally integrated. economy. The establishment of the Strong Republic Nautical Highway (SRNH) or the Roll-on Roll-off transportation scheme is one of the government's approach in achieving this end. The RoRo is intended to facilitate economic growth all over the country by improving accessibility and the efficient transfer of good and services. In this study, the impact of RoRo on regional trade and industrialization is carefully studied. The results suggest that regional trade is favorably affected by the increase in mobility through RoRo by facilitating efficient flow of raw materials and final goods. The impact of RoRo in industrialization is also favorable. The study confirmed that improved mobility through RoRo could improve the industry sector through the transport of input, i.e. physical capital primarily and labor, and the shipment of the output. Good transportation also widens the market base enabling the industry to have larger demand. This study also observed the trade off between the two sectors which matches the Neoclassical Two-Sector Growth Model. Finally, this study also concluded that good transportation is valuable to all sectors.
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Keywords
Transportation industry, Inter regional trade, Regional trade, Industrialization, RORO transport system, Philippine transport system