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The relevance of international transport costs on food prices: Endogenous and exogenous effects

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  • Wilmsmeier, Gordon
  • Sanchez, Ricardo J.

Abstract

The paper addresses the problem of transport costs and their influence on food prices for South American imports. While transport does not seem to be in the focus of existing analyses, its impact on food prices might be underestimated and even closely linked to the development of commonly mentioned drivers of food prices. Since transport price formation is a function of demand and supply, drivers of food prices are also expected to impact on transport prices. The authors argue that a number of relevant factors that drive transport costs - and in consequence food prices - can be influenced by policy makers. Based on empirical analysis, the authors explain the functioning of the determinants of transport costs in the segment of international shipping, trying to describe their exogenous and endogenous components. These results are discussed in reference to policy development in the region.

Suggested Citation

  • Wilmsmeier, Gordon & Sanchez, Ricardo J., 2009. "The relevance of international transport costs on food prices: Endogenous and exogenous effects," Research in Transportation Economics, Elsevier, vol. 25(1), pages 56-66.
    • Handle: RePEc:eee:retrec:v:25:y:2009:i:1:p:56-66
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    3. Zhao, Qianyu & Xu, Hang & Wall, Ronald S & Stavropoulos, Spyridon, 2017. "Building a bridge between port and city: Improving the urban competitiveness of port cities," Journal of Transport Geography, Elsevier, vol. 59(C), pages 120-133.
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    5. Laura Márquez-Ramos & Inmaculada Martínez-Zarzoso & Eva Pérez-García & Gordon Wilmsmeier, 2011. "“Special Issue on Latin-American Research” Maritime Networks, Services Structure and Maritime Trade," Networks and Spatial Economics, Springer, vol. 11(3), pages 555-576, September.
    6. Ankur Chauhan & Harpreet Kaur & Sachin Yadav & Suresh Kumar Jakhar, 2020. "A hybrid model for investigating and selecting a sustainable supply chain for agri-produce in India," Annals of Operations Research, Springer, vol. 290(1), pages 621-642, July.
    7. Seyedvahid Vakili & Fabio Ballini & Alessandro Schönborn & Anastasia Christodoulou & Dimitrios Dalaklis & Aykut I. Ölçer, 2023. "Assessing the macroeconomic and social impacts of slow steaming in shipping: a literature review on small island developing states and least developed countries," Journal of Shipping and Trade, Springer, vol. 8(1), pages 1-25, December.
    8. Pérez-Mesa, Juan Carlos & García-Barranco, M & Piedra-Muñoz, Laura & Galdeano-Gómez, Emilio, 2019. "Transport as a limiting factor for the growth of Spanish agri-food exports," MPRA Paper 119855, University Library of Munich, Germany.
    9. Pérez-Mesa, Juan Carlos & García-Barranco, M. Carmen & Piedra-Muñoz, Laura & Galdeano-Gómez, Emilio, 2019. "Transport as a limiting factor for the growth of Spanish agri-food exports," Research in Transportation Economics, Elsevier, vol. 78(C).
    10. Lim, Kian Guan, 2022. "Endogeneity of commodity price in freight cost models," Journal of Commodity Markets, Elsevier, vol. 26(C).
    11. Wilmsmeier Gordon & Sánchez Ricardo J., 2010. "Evolution of shipping networks," ZFW – Advances in Economic Geography, De Gruyter, vol. 54(1), pages 180-193, October.
    12. Mauricio Mesquita Moreira & Paolo Giordano & Antoni Estevadeordal & Tomás Serebrisky & Jordan Schwartz & Ricardo Sánchez & Aiga Stokenberga, 2010. "Nota de Discusión de Politícas: Cómo Reducir Las Brechas de Integración (Escenarios y Recomendaciones de Políticas para Promover la Infraestructura Física y Reducir los Costes del Comercio Intrarregio," IDB Publications (Working Papers) 9338, Inter-American Development Bank.

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