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Market analysis and transportation procurement for food aid in Ethiopia

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  • Rancourt, Marie-Ève
  • Bellavance, François
  • Goentzel, Jarrod

Abstract

Empirical research characterizing transportation markets in developing countries is scarce. By analyzing contracts between the World Food Programme and private carriers, we identify the determinants of transportation tariffs in Ethiopia and quantify their relative importance. The econometric models devised from our unique dataset provide insights for shippers to improve procurement processes, for carriers to develop competitive business models and for government authorities to define effective investments and policies. Results indicate that the number of carriers on a given lane significantly reduces transportation tariffs and that policies stimulating competition may be as important as road infrastructure investments in Ethiopia's development strategy.

Suggested Citation

  • Rancourt, Marie-Ève & Bellavance, François & Goentzel, Jarrod, 2014. "Market analysis and transportation procurement for food aid in Ethiopia," Socio-Economic Planning Sciences, Elsevier, vol. 48(3), pages 198-219.
    • Handle: RePEc:eee:soceps:v:48:y:2014:i:3:p:198-219
    DOI: 10.1016/j.seps.2014.07.001
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    2. Nagurney, Anna & Salarpour, Mojtaba & Daniele, Patrizia, 2019. "An integrated financial and logistical game theory model for humanitarian organizations with purchasing costs, multiple freight service providers, and budget, capacity, and demand constraints," International Journal of Production Economics, Elsevier, vol. 212(C), pages 212-226.
    3. Gossler, Timo & Wakolbinger, Tina & Nagurney, Anna & Daniele, Patrizia, 2019. "How to increase the impact of disaster relief: A study of transportation rates, framework agreements and product distribution," European Journal of Operational Research, Elsevier, vol. 274(1), pages 126-141.
    4. Mayneris, Florian & Martin, Julien & Theophile, Ewane, 2020. "The price of remoteness: Product availability and local cost of living in Ethiopia," CEPR Discussion Papers 14515, C.E.P.R. Discussion Papers.
    5. Feyza G. Sahinyazan & Marie‐Ève Rancourt & Vedat Verter, 2021. "Improving Transportation Procurement in the Humanitarian Sector: A Data‐driven Approach for Abnormally Low Bid Detection," Production and Operations Management, Production and Operations Management Society, vol. 30(4), pages 1082-1109, April.
    6. Ngui Min Fui Tom, 2019. "Strategy to Build a Transshipment Port as a Catalyst to Achieving Critical Mass for Sabah’s Economic Growth," International Business Research, Canadian Center of Science and Education, vol. 12(7), pages 141-166, July.
    7. Singha Mahapatra, Maheswar & Mahanty, Biswajit, 2020. "Policies for managing peak stock of food grains for effective distribution: A case of the Indian food program," Socio-Economic Planning Sciences, Elsevier, vol. 71(C).
    8. Moshtari, Mohammad & Altay, Nezih & Heikkilä, Jussi & Gonçalves, Paulo, 2021. "Procurement in humanitarian organizations: Body of knowledge and practitioner's challenges," International Journal of Production Economics, Elsevier, vol. 233(C).
    9. Molly E. Brown & Chris Funk & Diego Pedreros & Diriba Korecha & Melesse Lemma & James Rowland & Emily Williams & James Verdin, 2017. "A climate trend analysis of Ethiopia: examining subseasonal climate impacts on crops and pasture conditions," Climatic Change, Springer, vol. 142(1), pages 169-182, May.

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