A re-examination of four decades' deregulation effect on competition and productivity of the US freight rail transportation industry

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Publicado en:Journal of International Logistics and Trade vol. 22, no. 1 (2024), p. 22
Autor principal: Shin, Seungjae
Publicado:
Jungseok Research Institute of International Logistics & Trade
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Resumen:Purpose - The purpose of this study is to compare the competition and productivity of the US freight rail transportation industry for the past 41 years (1980 ~ 2020), which consists of the two periods, before and after the abolishment of the Interstate Commerce Commission (ICC) in 1995. Design/methodology/approach - This study investigates any relationships between the market concentration index values and labor productivity values in the separate two periods, and how the existence of a regulatory body in the freight transportation market impacted the productivity of the freight rail transportation industry by using a Cobb-Douglas production function on annual financial statement data from the US stock exchange market. Findings - This study found that, after the abolishment of the ICC: (1) the rail industry became less competitive, (2) even if the rail industry had an increasing labor productivity trend, there was a strong negative correlation between the market concentration index and labor productivity and (3) the rail industry's total factor productivity was decreased. Originality/value - This study is to find empirical evidence of the effect of the ICC abolishment on the competition and productivity levels in the US freight rail transportation industry using a continuous data set of 41-year financial statements, which is unique compared to previous studies.
ISSN:1738-2122
2508-7592
DOI:10.1108/JILT-07-2023-0046
Fuente:ABI/INFORM Global