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On The (Mis)Measurement Of International Transport Costs

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  • Mihalis Chasomeris
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    Abstract

    Several world institutions and researchers use import cif/fob ratios to measure a country's international transport costs. In this paper, the relationship between annual cif/fob ratios and compositions of imports are examined via correlation analysis. The findings show that where the quality of the data is reliable, a country's composition of imports has a significant effect on that country's cif/fob ratios; hence researchers cannot use the ratio as a reliable measure of direct shipping costs. Researchers should be wary of substituting country cif/fob ratios for direct measures of transport costs. Copyright (c) 2009 The Author. Journal compilation (c) 2009 Economic Society of South Africa.

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    Bibliographic Info

    Article provided by Economic Society of South Africa in its journal South African Journal of Economics.

    Volume (Year): 77 (2009)
    Issue (Month): 1 (03)
    Pages: 148-161

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    Handle: RePEc:bla:sajeco:v:77:y:2009:i:1:p:148-161

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