Abstract
This study examines the determinants of location decisions on domestic shippers. To do this, this study identifies with the aid of the location choice model. We have used Korea commodity flow survey collected by the inter-regional shippers and socio-economical data. The results suggest that the location of shippers depend on agglomeration economies, market size, as well as logistics activities. The influential factors of location choice are as follows. Firstly, the influence of travel time between shipping (receiving) area between shipper locations (plants) should be accounted for. The suggested models show a large volume of transportation for a short transportation time and a small volume for a long transportation time. This study finds that the more business exist in an area, the more firms locate in the area. Urbanization economies have an influential role in location choice in Korean shippers.
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