Abstract

Transportation costs are the driving factors of the world trade growth, lower transportation costs can increase thecompetitiveness of a commodity. With the openness of the transportation services sector, transportation costsdue to the removal of tariff and non-tariff barriers will be lower. Some of the commodities exported andimported by Indonesia are farm commodities thus how the policies influence their transportation cost needs to beknown. Analysis was performed using the 2010 cross section data of 15 countries. The analysis result indicatedthat the transport services sector openess did influence the transport costs of imports yet it didn’t significantlyinfluence the export transport costs.

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