Network Centrality and Road Freight Efficiency: A Spatial Econometric Analysis of South Korea’s Transport Regions

Abstract

Purpose - The purpose of this research is to investigate the road freight efficiency in 15 regions of South Korea using a super-efficiency SBM model and to understand the role of network centrality in influencing this efficiency. It aims to analyze how in-degree and out-degree centrality within the road freight network impacts the efficiency of road freight and how these effects manifest spatially across different regions. Design/Methodology – The study applied a super-efficiency Slacks-Based Measure (SBM) model to evaluate the efficiency of road freight across various regions. It incorporated two indices, indegree and out-degree centrality, to measure the network centrality of regions within the road freight network. Furthermore, it utilized the Spatial Durbin Model (SDM) to decompose and analyze the direct and indirect effects of network centrality on road freight efficiency, considering different spatial weight matrix. Findings – The study found that road freight efficiency in a region positively correlates with its centrality within the road transport network, indicating regions that are central to the network tend to utilize their inputs more effectively and improve transport efficiency. It also discovered positive spillover effects of network centrality, suggesting that a region’s central role in the network benefits not only itself but also adjacent regions. Originality/value - The research is valuable for its application of the super-efficiency SBM and SDM models to the context of road transport networks in South Korea, a relatively underexplored area in transportation studies. It contributes original insights into the spatial dynamics of road freight efficiency, emphasizing the role of network centrality and its variable effects across different regions.