On The (Mis)Measurement Of International Transport Costs
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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Volume (Year): 77 (2009)
Issue (Month): 1 (03)
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