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Maritime transport costs and port efficiency

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Author Info
Dollar, David
Micco, Alejandro
Clark, Ximena

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Abstract

Recent literature has emphasized the importance of transport costs and infrastructure in explaining trade, access to markets, and increases in per capita income. For most Latin American countries transport costs are a greater barrier to U.S. markets than import tariffs. The authors investigate the determinants of the costs of shipping to the United States using a large database (more than 300,000 observations a year) on shipments of products at the six-digit level of the Harmonized System of classification from different ports around the world. They find that distance and containerization matter. They find that the efficiency of ports is also important. Improving the efficiency of a port from the 25th to the 75th percentile reduces shipping costs by 12 percent. (On average, having bad ports is equivalent to being 60 percent farther away from markets.) Inefficient ports also increase handling costs, which are part of shipping costs. Finally, the authors try to explain variations in port efficiency. They find that the variations are linked to excessive regulation, the prevalence of organized crime, and the general condition of the country's infrastructure.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2781.

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Date of creation: 28 Feb 2002
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Handle: RePEc:wbk:wbrwps:2781

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Related research
Keywords: Environmental Economics&Policies; Common Carriers Industry; Transport and Trade Logistics; Economic Theory&Research; Transport Economics Policy&Planning; Economic Theory&Research; Ports&Waterways; Common Carriers Industry; Environmental Economics&Policies; Transport and Trade Logistics;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Alberto F. Ades & Edward L. Glaeser, 1994. "Evidence on Growth, Increasing Returns and the Extent of the Market," NBER Working Papers 4714, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-51, March. [Downloadable!] (restricted)
    Other versions:
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Alejandro Micco & Natalia Perez, 2002. "Factores determinantes de los costos del transporte marítimo," RES Working Papers 4248, Inter-American Development Bank, Research Department. [Downloadable!]
  2. Inmaculada Martínez-Zarzoso & Celestino Suárez-Burguet, 2005. "Transport costs and trade: Empirical evidence for Latin American imports from the European union," Journal of International Trade & Economic Development, Taylor and Francis Journals, vol. 14(3), pages 353-371, September. [Downloadable!] (restricted)
  3. Santiago Herrera & Gaobo Pang, 2006. "Efficiency Of Infrastructure: The Case Of Container Ports," Anais do XXXIV Encontro Nacional de Economia [Proceedings of the 34th Brazilian Economics Meeting] 124, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics]. [Downloadable!]
  4. Brun, Jean-François & Carrère, Céline & de Melo, Jaime & Guillaumont, Patrick, 2002. "Has Distance Died? Evidence from a Panel Gravity Model," CEPR Discussion Papers 3500, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  5. Wilson,John S. & Mann, Catherine L. & Otsuki, Tsunehiro, 2003. "Trade facilitation and economic development : measuring the impact," Policy Research Working Paper Series 2988, The World Bank. [Downloadable!]
  6. Adriaen, D. & Kleynhans, T.E. & Tollens, E., 2004. "A comparison between South African agricultural exports to the European union and those of other selected southern hemisphere countries," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 43(2), June. [Downloadable!]
  7. Inmaculada Martínez-Zarzoso & Gordon Wilmsmeier, 2008. "Determinants of Maritime Transport Costs. A Panel Data Analysis for Latin American Trade," Ibero America Institute for Econ. Research (IAI) Discussion Papers 172, Ibero-America Institute for Economic Research. [Downloadable!]
  8. Eduardo Lora & Patricia Cortés, 2001. "Obstacles to Business Development and the Size of Firms in Latin America," RES Working Papers 4257, Inter-American Development Bank, Research Department. [Downloadable!]
  9. Céline CARRERE, 2007. "Regional Agreements and Welfare in the South: When Scale Economies in Transport Matter," Working Papers 200726, CERDI. [Downloadable!]
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  10. Bagai, Shweta & Wilson, John S., 2006. "The data chase : what's out there on trade costs and nontariff barriers ?," Policy Research Working Paper Series 3899, The World Bank. [Downloadable!]
  11. Nichodemus Rudaheranwa, . "Trade Policy and Transport Costs in Uganda," Discussion Papers 06/09, University of Nottingham, CREDIT. [Downloadable!]
  12. Carrere, Celine & Schiff, Maurice, 2004. "On the geography of trade : distance is alive and well," Policy Research Working Paper Series 3206, The World Bank. [Downloadable!]
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  13. Alejandro Micco & Natalia Perez, 2002. "Determinants of Maritime Transport Costs," RES Working Papers 4247, Inter-American Development Bank, Research Department. [Downloadable!]
  14. José Antonio Reyes, 2007. "El punto que le falta al CAFTA," RES Working Papers 4529, Inter-American Development Bank, Research Department. [Downloadable!]
  15. José Antonio Reyes, 2007. "The Missing Point in CAFTA," RES Working Papers 4528, Inter-American Development Bank, Research Department. [Downloadable!]
  16. Alejandro Micco & Tomás Serebrisky, 2004. "Infrastructure, Competition Regimes and Air Transport Costs: Cross Country Evidence," Econometric Society 2004 Latin American Meetings 117, Econometric Society. [Downloadable!]
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  17. Azim M. Sadikov, 2007. "Border and Behind-the-Border Trade Barriers and Country Exports," IMF Working Papers 07/292, International Monetary Fund. [Downloadable!]
  18. Verónica Mies & Rodrigo Fuentes, 2005. "Mirando el Desarrollo Económico de Chile: Una Comparación Internacional," Documentos de Trabajo 287, Instituto de Economía. Pontificia Universidad Católica de Chile.. [Downloadable!]
    Other versions:
  19. Eduardo Lora & Patricia Cortés, 2001. "Los obstáculos al desarrollo empresarial y el tamaño de las firmas en América Latina," RES Working Papers 4258, Inter-American Development Bank, Research Department. [Downloadable!]
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