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On The (Mis)Measurement Of International Transport Costs

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  • Mihalis Chasomeris

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.

Suggested Citation

  • Mihalis Chasomeris, 2009. "On The (Mis)Measurement Of International Transport Costs," South African Journal of Economics, Economic Society of South Africa, vol. 77(1), pages 148-161, March.
  • Handle: RePEc:bla:sajeco:v:77:y:2009:i:1:p:148-161
    DOI: 10.1111/j.1813-6982.2009.01198.x
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    References listed on IDEAS

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    5. Yeats, Alexander J, 1977. "Do International Transport Costs Increase with Fabrication? Some Empirical Evidence," Oxford Economic Papers, Oxford University Press, vol. 29(3), pages 458-471, November.
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