Impact Of Transportation Costs Research Articles

The Impact of Transport Costs on Business Decision-Making in Rural Areas

Mobility challenges in rural areas can have a negative impact on economic and demographic development. People in these areas often have to move to urban areas to find quality jobs or services, which can lead to a decline in population, and economic activity. In this paper we analyze the factors influencing business decisions in rural areas. Public transport infrastructure based on short energy cycles using solar energy represents a solution to boost business decision management in rural areas.

Impact of Transportation Costs on the Establishment of an Industrial Symbiosis Network

The challenges related to natural resource depletion and environmental issues stimulate businesses to look for solutions to overcome them. One of the leading strategies that have emerged from the practical implementation of the circular economy concept is industrial symbiosis, which aims to reduce material extraction and consumption by using the waste (co-product) of one company as input for production processes of another company. This study aims to provide a more profound insight into industrial symbiosis (IS) modeling by considering the transport system impact. To this end, a hybrid approach based on agent-based modeling and system dynamics is presented to comprehensively capture the complexity of interactions between companies and their related impacts on transportation. A case study and numerical example are discussed to validate the proposed approach and related model. The results demonstrate that the development of IS, as expected, is significantly influenced by the transport system.

Driven Away: The Relationship Between Gasoline Prices and Community College Student Retention

ABSTRACT Previous studies identified student-specific and institutional factors that impact community college student retention. However, few studies have examined associations between commodity prices and community college student retention. Guided by rational choice theory, we examine the relationship between annual, state-level gasoline prices and community college student retention. Using institution fixed effects and data from IPEDS, the Bureau of Labor Statistics, and the Energy Information Administration, we analyze 11,460 observations collected between 2006 and 2019 from 942 community colleges. We find a statistically significant relationship between gasoline prices and retention rates: one dollar increase in gasoline price per gallon is associated with a 0.918% point decrease in community college student retention rates, when accounting for institutional characteristics and local unemployment rates. Our study expands the current literature on the impact of transportation costs on student retention and argues that institutions should work to support students’ financial concerns, including gasoline prices.

Volatility of relative prices and transportation costs: evidence for Brazilian cities

ABSTRACT This work estimates the effect of transport costs on relative price volatility in Brazilian cities. We use time-varying volatility measures and propose a new proxy for transportation costs. The results of the dynamic panel data models show (little) evidence of a positive impact of transport costs on relative price volatility, only in specifications without the relative wage volatility.

The impact of transportation costs on economic performances in crop production

Transport activity has significant implications for the other sectors' activities, including agriculture and agribusiness. Transportation costs represent a significant determinant of total operating costs, and therefore the selling price, which affects the competitiveness of products and the achieved business results. The aim of the paper is to point out the importance of respecting the financial effects of transport in the decision-making process of agribusiness management. The following methods have been used in the research: desk research, survey, direct costing method of calculation, sensitivity analysis and methods of descriptive statistics. Based on survey data conducted on farm of Central Serbia for the period 2016-2018, the paper analyzes the interdependence of transportation costs and gross margins in order to find out the factors that determine the decisions on production optimization as well as the business results of farm operations.

The Relationship Between Logistics Performance and Innovation: An Empirical Study of Turkish Firms

The aim of the study is to explore whether logistics performance affects firms’ innovation decisions. Using Turkey Regional Enterprise Survey conducted between August 2015 and June 2016, we measure logistics performance by transportation costs. We consider several aspects of innovation including process innovation, product innovation, organizational innovation and investments in Research & Development. We also analyze whether the impact of transportation costs on innovation activities varies across industries or regions. Our findings indicate that the impact of transportation costs on R&D activities is highest for firms in the construction sector, whereas for innovation outputs, the impact is greatest for the wholesale & retail sector. Moreover, our results also reveal three regions where transportation costs matter the most for innovation are Ankara, Bursa-Bilecik-Eskisehir and finally Diyarbakir-Sanliurfa.

How much material can a recycling facility source? A business-incentive based model for secondary material sourcing applied to waste LCD screen material

For low value waste materials, the ability to economically recycle scrap can be inhibited by the transportation costs associated with collecting sufficient material at a central location to reach a threshold economy of scale. Waste liquid crystal display (LCD) screen, once removed from their host devices, are an example of such a material. An economic model has been developed for estimating the amount of material that could be consolidated at a central recycling facility for processing by optimizing for the internal rate of return (IRR) for constructing and operating such a facility. The results show that the population density and high landfill tipping fees of the northeastern United States make New York and New Jersey the states associated with the highest IRR. Process sensitivity analyses reveal that for standard grade commodities produced from LCD glass, only nine states – all in the northeastern US – exhibit an IRR greater than 10% and only process about one third of the US and Canada’s LCD screen waste. For a recycler producing a high value liquid crystal product and a value-added glass product from the same waste, the impact of transportation costs becomes negligible and a facility could be operated in a state of one’s choosing to process all of the US and Canada’s waste with little impact on IRR. For the principal processing flow sheet investigated, the optimal plant capacity is estimated to be about 11,000 tonnes per year.

Incidence, socio-economic inequalities and determinants of catastrophic health expenditure and impoverishment for diabetes care in South Africa: a study at two public hospitals in Tshwane

BackgroundDirect out of pocket (OOP) payments for healthcare may cause financial hardship. For diabetic patients who require frequent visits to health centres, this is of concern as OOP payments may limit access to healthcare. This study assesses the incidence, socio-economic inequalities and determinants of catastrophic health expenditure and impoverishment amongst diabetic patients in South Africa.MethodsData were taken from a cross-sectional survey conducted in 2017 at two public hospitals in Tshwane, South Africa (N = 396). Healthcare costs and transport costs related to diabetes care were classified as catastrophic if they exceeded the 10% threshold of household’s capacity to pay (WHO standard method) or if they exceeded a variable threshold of total household expenditure (Ataguba method). Erreygers concentration indices (CIs) were used to assess socio-economic inequalities. A multivariate logistic regression was applied to identify the determinants of catastrophic health expenditure and impoverishment.ResultsTransport costs contributed to over 50% of total healthcare costs. The incidence of catastrophic health expenditure was 25% when measured at a 10% threshold of capacity to pay and 13% when measured at a variable threshold of total household expenditure. Depending on the method used, the incidence of impoverishment varied from 2 to 4% and the concentration index for catastrophic health expenditure varied from − 0.2299 to − 0.1026. When measured at a 10% threshold of capacity to pay factors associated with catastrophic health expenditure were being female (Odds Ratio 1.73; Standard Error 0.51), being within the 3rd (0.49; 0.20), 4th (0.31; 0.15) and 5th wealth quintile (0.30; 0.17). When measured using a variable threshold of total household expenditure factors associated with catastrophic health expenditure were not having children (3.35; 1.82) and the 4th wealth quintile (0.32; 0.21).ConclusionFinancial protection of diabetic patients in public hospitals is limited. This observation suggests that health financing interventions amongst diabetic patients should target the poor and poor women in particular. There is also a need for targeted interventions to improve access to healthcare facilities for diabetic patients and to reduce the financial impact of transport costs when seeking healthcare. This is particularly important for the achievement of universal health coverage in South Africa.

Impact of Transport Costs on Vietnamese Textile Exports

Transport cost is a critical component that structure price of goods at destination points in international trade. This research explored and analysed transport cost and its impact on export by investigating the relationship between transport cost and export of textile (a specific sector) in Vietnam (a developing country) from 2012 to 2014.

Polaris Industries Inc.

In September 2010 Suresh Krishna, vice president of operations and integration at Polaris Industries Inc., a manufacturer of all-terrain vehicles, Side-by-Sides, and snowmobiles, needed to recommend a location for a new plant to manufacture the company's Side-by-Side vehicles.The economic slowdown in the United States had put considerable pressure on Polaris's profits, so the company was considering whether it should follow the lead of other manufacturers and open a facility in a country with lower labor costs. China and Mexico were shortlisted as possible locations for the new factory, which would be the first Polaris manufacturing facility located outside the Midwestern United States. By the end of the year Krishna needed to recommend to the board whether Polaris should build a new plant abroad (near-shored in Mexico or off-shored in China) or continue to manufacture in its American facilities. Evaluate tradeoffs between different geographic locations when establishing a manufacturing facility (off-shoring, near-shoring, and on-shoring) Run a sensitivity analysis on total cost Assess the impact of transportation costs, exchange rates, labor cost rates, lead times, and other assumptions on total costs Identify qualitative factors to be considered when deciding between non-U.S. facility locations, transportation time variability, consumer perceptions, and cultural differences

Impact of transportation costs and infrastructure quality on Indonesian imports

This article investigates the impact of sea and air transportation cost, as well as infrastructure quality, to Indonesia’s import. Employing a panel regression model to seek for the answer, the paper find that cost reduction for sea transportation has greater impact on the Indonesia’s import volume compared to the air transportation. This paper also finds that Indonesia’s infrastructure quality has a significant positive impact on Indonesia’s import. The quality of ports, roads, and Linear Connectivity International Shipping (LSCI) are significant factors affecting import volume by sea transportation mode. Meanwhile, import volume by air transportation is significantly affected by the quality of the roads and airports.Keyword: Transportation costs, sea and air transportation infastructure qualities, volume of importJEL classification numbers: D24, H54, F13AbstrakPaper ini menyelidiki pengaruh biaya transportasi laut dan udara dan kualitas infrastruktur erhadap impor Indonesia. Dengan menggunakan model regresi data panel, paper ini menemukan bahwa koefisien biaya transportasi untuk impor menggunakan transportasi laut lebih besar dibandingkan melalui udara. Dengan kata lain, turunnya biaya transportasi laut memiliki dampak yang lebih besar pada volume impor Indonesia dibandingkan melalui transportasi udara. Kualitas infrastruktur Indonesia memiliki dampak positif yang signifikan terhadap impor. Kualitas pelabuhan, jalan, dan Linear Connectivity International Shipping (LSCI) merupakan faktor penting yang dapat memengaruhi impor Indonesia melalui moda transportasi laut. Sementara itu, volume impor melalui moda transportasi udara dipengaruhi signifikan oleh kualitas jalan dan bandara udara. Kata kunci: Biaya transportasi, kualitas infrastruktur laut dan udara, volume impor JEL classification numbers: D24, H54, F13

A traditional gravity model of the endogenous nexus between transportation costs and bilateral trade

Transportation costs are frequently cited as an important determinant of trade costs. The literature has hitherto paid little attention to the endogenous nexus between transportation costs and trade. In this paper, the impact of transportation costs on trade is re–examined by incorporating alternative determinants of transportation costs and trade in a gravity model of bilateral trade in nine Asian (Asia Nine) countries. We find that technology and cultural factors tend to stimulate bilateral trade between member countries. These findings are robust to different measures, econometric methods and period coverage.

The Effect of Transport Costs on Housing-related Financial Stress in Australia

Housing-related financial stress or housing stress is usually measured on the basis of income and direct housing costs such as mortgage repayments and rents. One cost that is not included in calculations of housing stress, but which may be important, is the difference made by transport costs. This paper shows how a measure of housing stress that incorporates transport costs can give a different picture of housing stress from a measure that ignores transport costs. The result shows that, in capital cities, bringing transport costs into a housing stress measure particularly affects households with children. It is also found that the impact of transport costs is even greater outside capital cities and that access to public transport may play a role in determining the spatial pattern of housing stress and hence the impact of transport cost on housing stress.

The Business of Forest Enterprise / Urban Ecosystems / Forest Policy / Biosecurity

Abstract 172Business clusters are geographic concentrations of companies that provide mutual advantages for their participants. Clusters can include diverse members including competitors, customers, partners, and/or suppliers. In Alaska, wood products business clusters can have unique challenges associated with remote locations, high raw material costs, limited local markets, and potentially long transportation distances. Further, multiple land ownership near communities (for example state versus federal ownership) can influence raw material procurement, since different administrative processes for timber harvesting may be required. This study evaluates 2 resource dependent communities in southeast Alaska (Haines, AK and Craig, AK), seeking to identify elements that could enhance their potential for wood products clusters and new business formation. We consider how the flow of forest resources, from harvest to finished product, can influence local communities and either enhance or limit opportunities for wood products businesses. We evaluate the effect of various product mixes—including firewood, woody residues, house logs, lumber, and secondary wood products—on the composition, scale, and dynamics of wood products firms. We consider the effect of harvesting practices and proximity to timber sales in evaluating how land ownership can influence the viability of wood products clusters. Lastly we consider the impact of transportation costs on serving local and export markets. Our research builds upon past work in Alaska that evaluated national-forest based communities in Alaska, finding opportunities for greater innovation, higher productivity, and greater social well-being associated with wood products clusters.

Modeling actual transportation costs in supplier selection and order quantity allocation decisions

Given the impact of transportation costs in both supplier selection and inventory management decisions in today’s enterprises, this article addresses both problems simultaneously by developing a mixed integer nonlinear programming model to properly allocate order quantities to the selected set of suppliers while taking into account the purchasing, inventory, and transportation costs under suppliers’ capacity and quality constraints. In particular, we focus on the usage of trucks as a means of transporting goods and the option of the full-truck-load versus less-than-truckload (LTL) is studied. Since actual LTL transportation costs are neither differentiable nor convex, they are modeled with a piecewise linear function using binary variables. It is shown that, considering actual transportation costs in inventory planning, not only affects the order quantities shipped from selected suppliers but also the actual selection of suppliers.

The Impact of Transportation Costs on Spatial Competition of Grain Buyers: An Iowa Case Study

Hotelling's classic model of spatial competition is adapted to estimate the impacts on grain price of the closure of one of three grain buyers on the Mississippi River in the vicinity of Scott County, Iowa. The customers of the buyer who is closing (River Gulf Grain Company) in Davenport, Iowa, are assumed to deliver their grain to a buyer in either Buffalo, Iowa, to the south or to a buyer in Clinton, Iowa, to the north. Calibration of Hotelling's framework to this situation leads to an estimated decline in grain bids of 1.5¢ per bushel for the buyer located in Clinton and by 2.5¢ per bushel for the buyer located in Buffalo. These estimates are based on an incremental transportation cost of 0.15¢ per mile between the seller's farm and the buyer. This price decline would reduce gross receipts of the farmers who currently deliver to Davenport by approximately $264,000 per year. The effect of lower price bids on gross receipts of all area farmers would be approximately $750,000 per year. Transportation costs would increase by an estimated $75,000 for those farmers who would have to haul their grain farther because of the closure.

The impact of transport costs on new venture internationalisation

This paper investigates the importance of transport costs in new venture internationalisation, i.e. of firms that start exporting before they are 3 years of age. It does so by merging two large international datasets, on the firm level (covering 49,584 firms) as well as on the country level (covering 154 countries). It is found that transport costs matter significantly for new venture internationalisation, for older firms’ decision to export, as well as the extent of the latter’s subsequent exports. Export costs, the quality of transport infrastructure and domestic logistics costs affect new venture internationalisation even when controlling for a range of standard determinants. New international ventures behave differently from older firms in two important ways: (1) Transport costs affect the probability that they will export but not the extent of their subsequent exports and (2) their probability of exporting is affected negatively by their networking, domestic success and ISO status, whilst in the case of older firms, these factors have a positive impact. Various recommendations for policy and further research are made.

Estimating freight rates in inventory replenishment and supplier selection decisions

Given the impact of transportation costs on both supplier selection and inventory replenishment decisions in today’s enterprises, this article addresses both problems simultaneously by proposing a mixed integer nonlinear programming model to properly allocate order quantities to the selected set of suppliers while taking into account the purchasing, holding and transportation costs under suppliers’ capacity and quality constraints. It is shown that incorporating transportation costs in the process of selecting suppliers and establishing an inventory policy, not only affects the order quantity shipped from selected suppliers, but also the actual selection of suppliers. Because of the difficulty that arises when working with actual transportation freight rates in large-scale problems, two continuous functions that estimate actual freight rates are analyzed. It is shown that the use of these functions is very practical and easy to implement.

The impact of transportation costs on the profitability of heat and power generation with wood products

The impact of transportation costs on the profitability of heat and power generation with wood products

On the Impact of Transportation Costs on Trade in a Multilateral World

This article proposes to account for the differences in the importance of transport costs, depending on characteristics of trading partners. In a multiregion model of trade in differentiated goods we expect a smaller impact of transport costs on a country's exports as a share of importer gross domestic product (GDP) the more (less) relatively capital-abundant the exporter (importer) is and the lower (higher) production costs are as captured by GDP at given factor endowments and diversity, all else equal. Empirically, this requires four interaction terms in addition to the direct impact of transport costs when estimating log-linear gravity models: one with the exporter GDP per capita or capital-labor ratio, a second one with the importer GDP per capita or capital-labor ratio, and a third and fourth with exporter and importer GDP, respectively. The hypotheses are strongly supported by the evidence from a large panel of bilateral trade between 1970 and 2000.