Determinants of the demand function for the Philippine containerized domestic shipping industry to five Asian countries

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ID: 285791
2006
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Abstract
Containerized cargo is fast becoming the new trend for shipping cargo in the Philippines. Economical, easy handling and safety of the commodities transported from port to port were reasons for this progress. This type of packaging offers lower freight costs and greater throughput which served as major encouragement for shippers and shipping companies to containerize. This paper examines the determinants of the demand for this type of packaging focusing on five major trading partners of the country, for the period of 1980-2004. This paper also evaluates the own-price elasticity, cross-price elasticity and export-price elasticity of demand. It is found that the major trading partners of the Philippines, responds mainly to the export-price elasticity of demand. Few of these trading partners respond to the own-price elasticity and cross-price elasticity of demand. In addition, the foreign exchange rate variable was found to be significant to some of the trading partners and insignificant to some. Lastly, the presidential administration dummy variables were found to be insignificant to the demand for this type of packaging.
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Authors Panganiban, Joseph
Journal Malay Journal
Year 2006
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