11th Economics & Finance Conference, Rome

FREIGHTING DEMAND ESTIMATION FOR THAILAND

NANTARAT TANGVITOONTHAM

Abstract:

This paper aims to investigate the factors affecting the freighting demand in Thailand. We use the CUBE CARGO data of Department of Land Transport that surveyed from freighting across country in year 2017. The survey included the freighting by truck, train, and ship among provinces. This study used gravity model to estimate the flow based on economic sizes of the provinces and distances between the origin and destination. The results confirmed that the distances between origin and destination provinces are statistically significant with negative sign. The Gross Provincial Products (GPP) of origin and destination provinces are positively significant. Therefore, the domestic trades are significantly high among the high-income provinces. In addition, number of population in destination provinces are positively significant while number of population in origin provinces have negative impact on freighting. Agriculture areas in origin provinces are also positively significant, while agriculture areas in destination are negatively significant. This shows that the agriculture goods and products are flow from the production area to the consumption area. Lastly, industrial estate is matter for increasing in domestic freighting in both the origin and destination provinces.

Keywords: Transportation estimation, Freighting demand, Gravity Model

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