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Publication Detail
DP 2017-22: The Impacts of Roll-On/Roll-Off Transport System in the Philippines

It is well recognized in the literature that a country's transport system plays a central role in its development. This paper shows the economic impacts of improvements in the transport system by studying the experience of the Philippines with the roll-on/roll-off (Ro-Ro) policy that promotes the use of Ro-Ro ferry terminal system. Using difference-in-difference strategies in analyzing agricultural household income and children's education, the study finds that the operation of Ro-Ro ports largely benefited the households living near the Ro-Ro ports. More specifically, estimates suggest that agricultural households gained higher income from the operation of these ports because both agriculture- and nonagriculture-related activities were stimulated. Results also imply the boost in nonagriculture-related activities in the islands where the Ro-Ro ports are located. Meanwhile, analysis on children's education reveals an increase in school attendance of males and females in municipalities near the Ro-Ro ports. The study also confirms that there was an increase in family income in these areas, thereby suggesting the increased capacity of households to send children to school. As a whole, the study demonstrates some examples of short- and long-run impacts of improving a country's transport system. Likewise, it highlights the importance of an efficient and affordable transport system in an archipelagic country like the Philippines.

Philippine Institute for Development Studies
Authors Keywords
Francisco, Kris A.; Philippines; education; agriculture; transport system; roll-on/roll-off policy; Ro-Ro;
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Published in 2017 and available in the PIDS Library or can be downloaded as full text Downloaded 2,058 times since June 22, 2017