IDEAS home Printed from https://ideas.repec.org/a/eee/jotrge/v86y2020ics0966692320300776.html
   My bibliography  Save this article

The economics of Africa's floriculture air-cargo supply chain

Author

Listed:
  • Button, Kenneth

Abstract

This article examines the economics of Africa's emerging air cargo supply chains, taking floriculture as a case study. Floriculture is an important employer, and earner of foreign exchange for several regions of central/southern and eastern Africa including more recently Ethiopia. Air transportation often plays a critical role when the supply-chain involves high-value, non-durable, relatively light-weight, and compact consignments such as flowers, and geographically when regions are difficult to access by other trunk modes. The success of air cargo chains, however, depend as much on the quality of surface modes serving various “last mile” access and egress functions, as well as efficient nodal interchange points and the availability of suitable airport and airline capacity. The last, because of the important role of belly-hold space, includes consideration of passenger as well as cargo specific services. To meet the needs of Africa's floriculture sector, a variety of supply-chain models have emerged that embrace air and surface links, as well as storage at various points in the chain. The paper considers the nature of these chains, the reason d'être for their structures, and their limitations.

Suggested Citation

  • Button, Kenneth, 2020. "The economics of Africa's floriculture air-cargo supply chain," Journal of Transport Geography, Elsevier, vol. 86(C).
    • Handle: RePEc:eee:jotrge:v:86:y:2020:i:c:s0966692320300776
    DOI: 10.1016/j.jtrangeo.2020.102789
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0966692320300776
    Download Restriction: no
    File URL: https://libkey.io/10.1016/j.jtrangeo.2020.102789?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Barros, Carlos Pestana & Wanke, Peter, 2015. "An analysis of African airlines efficiency with two-stage TOPSIS and neural networks," Journal of Air Transport Management, Elsevier, vol. 44, pages 90-102.
    2. Ken Gwilliam, 2011. "Africa's Transport Infrastructure : Mainstreaming Maintenance and Management," World Bank Publications - Books, The World Bank Group, number 2275, December.
    3. Spiller, Pablo T., 2013. "Transaction cost regulation," Journal of Economic Behavior & Organization, Elsevier, vol. 89(C), pages 232-242.
    4. Mulu Gebreeyesus, 2015. "Firm adoption of international standards: evidence from the Ethiopian floriculture sector," Agricultural Economics, International Association of Agricultural Economists, vol. 46(S1), pages 139-155, November.
    5. Heinz, Stephan & O’Connell, John F., 2013. "Air transport in Africa: toward sustainable business models for African airlines," Journal of Transport Geography, Elsevier, vol. 31(C), pages 72-83.
    6. Y H Yang & Y V Hui & L C Leung & G Chen, 2010. "An analytic network process approach to the selection of logistics service providers for air cargo," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 61(9), pages 1365-1376, September.
    7. Dettmer, Bianka & Freytag, Andreas & Draper, Peter, 2014. "Air Cargo beyond Trade Barriers in Africa," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 29, pages 95-138.
    8. Delelegne A. Tefera & Jos Bijman & Maja A. Slingerland, 2020. "Multinationals and Modernisation of Domestic Value Chains in Africa: Case Studies from Ethiopia," Journal of Development Studies, Taylor & Francis Journals, vol. 56(3), pages 596-612, March.
    9. Adeola Olubukola Babalola & Balan Sundarakani & K. Ganesh, 2011. "Cold chain logistics in the floral industry," International Journal of Enterprise Network Management, Inderscience Enterprises Ltd, vol. 4(4), pages 400-413.
    10. Behrens, Kristian & Picard, Pierre M., 2011. "Transportation, freight rates, and economic geography," Journal of International Economics, Elsevier, vol. 85(2), pages 280-291.
    11. Leinbach, Thomas R., 1995. "Transport and Third World development: Review, issues, and prescription," Transportation Research Part A: Policy and Practice, Elsevier, vol. 29(5), pages 337-344, September.
    12. Oliver E. Williamson, 2000. "The New Institutional Economics: Taking Stock, Looking Ahead," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 595-613, September.
    13. Martín, Juan Carlos & Voltes-Dorta, Augusto, 2008. "International Airports: Economies of Scale and Marginal Costs," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 47(1).
    14. Peter Nolan & Jin Zhang & Chunhang Liu, 2008. "The global business revolution, the cascade effect, and the challenge for firms from developing countries," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 32(1), pages 29-47, January.
    15. Marie Steen & Ole Gjølberg, 1999. "Forecasting Prices at the Dutch Flower Auctions," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(2), pages 258-268, May.
    16. Matthew Tyce, 2020. "A ‘Private-sector Success Story’? Uncovering the Role of Politics and the State in Kenya’s Horticultural Export Sector," Journal of Development Studies, Taylor & Francis Journals, vol. 56(10), pages 1877-1893, October.
    17. Jaffee, Steven M., 1992. "How private enterprise organized agricultural markets in Kenya," Policy Research Working Paper Series 823, The World Bank.
    18. Jevons, William Stanley, 1871. "The Theory of Political Economy," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number jevons1871.
    19. repec:idb:brikps:publication-detail,7101.html?id=9301 is not listed on IDEAS
    20. Njoya, Eric Tchouamou, 2016. "Africa’s single aviation market: The progress so far," Journal of Transport Geography, Elsevier, vol. 50(C), pages 4-11.
    21. Henry Vega, 2008. "Transportation Costs of Fresh Flowers: A Comparison across Major Exporting Countries," IDB Publications (Working Papers) 48178, Inter-American Development Bank.
    22. Piet Buys & Uwe Deichmann & David Wheeler, 2010. "Road Network Upgrading and Overland Trade Expansion in Sub-Saharan Africa-super- †," Journal of African Economies, Centre for the Study of African Economies, vol. 19(3), pages 399-432, June.
    23. Mano, Yukichi & Yamano, Takashi & Suzuki, Aya & Matsumoto, Tomoya, 2011. "Local and Personal Networks in Employment and the Development of Labor Markets: Evidence from the Cut Flower Industry in Ethiopia," World Development, Elsevier, vol. 39(10), pages 1760-1770.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Akinyemi, Yingigba Chioma, 2023. "Air cargo demand in Africa: Application of cointegration and error correction modelling techniques," Journal of Air Transport Management, Elsevier, vol. 109(C).
    2. Guerrero, David & Niérat, Patrick & Thill, Jean-Claude, 2023. "Connecting short and long distance perspectives in freight transportation: Introduction to a special issue," Journal of Transport Geography, Elsevier, vol. 106(C).
    3. Tolcha, Tassew Dufera & Tchouamou Njoya, Eric & Bråthen, Svein & Holmgren, Johan, 2021. "Effects of African aviation liberalisation on economic freedom, air connectivity and related economic consequences," Transport Policy, Elsevier, vol. 110(C), pages 204-214.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Button, Kenneth & Porta, Flavio & Scotti, Davide, 2020. "The role of strategic airline alliances in Africa," MPRA Paper 108265, University Library of Munich, Germany.
    2. Button, Kenneth & Martini, Gianmaria & Scotti, Davide & Volta, Nicola, 2019. "Airline regulation and common markets in Sub-Saharan Africa," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 129(C), pages 81-91.
    3. Shadrack Muthami Mwatu, 2022. "Institutions and export performance: firm level evidence from Kenya," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 69(4), pages 487-506, December.
    4. Gultom, Yohanna M.L., 2021. "When extractive political institutions affect public-private partnerships: Empirical evidence from Indonesia's independent power producers under two political regimes," Energy Policy, Elsevier, vol. 149(C).
    5. Remi Jedwab & Adam Storeygard, 2019. "Economic and Political Factors in Infrastructure Investment: Evidence from Railroads and Roads in Africa 1960–2015," Economic History of Developing Regions, Taylor & Francis Journals, vol. 34(2), pages 156-208, May.
    6. Massimiliano Vatiero, 2018. "Transaction and transactors’ choices: what we have learned and what we need to explore," Chapters, in: Claude Ménard & Mary M. Shirley (ed.), A Research Agenda for New Institutional Economics, chapter 11, pages 97-108, Edward Elgar Publishing.
    7. Abate, Megersa, 2016. "Economic effects of air transport market liberalization in Africa," Transportation Research Part A: Policy and Practice, Elsevier, vol. 92(C), pages 326-337.
    8. Jacques Charlier & Frédéric Dobruszkes, 2020. "Between external forces and internal factors: The geography of domestic airline services in South Africa," ULB Institutional Repository 2013/309837, ULB -- Universite Libre de Bruxelles.
    9. Suzuki, Aya & Mano, Yukichi & Abebe, Girum, 2018. "Earnings, savings, and job satisfaction in a labor-intensive export sector: Evidence from the cut flower industry in Ethiopia," World Development, Elsevier, vol. 110(C), pages 176-191.
    10. Button, Kenneth & Frye, Hailey & Reaves, David, 2020. "Economic regulation and E-scooter networks in the USA," Research in Transportation Economics, Elsevier, vol. 84(C).
    11. Pavez, Iciar & Codron, Jean-Marie & Lubello, Pasquale & Florêncio, Maria Cecilia, 2019. "Biosecurity institutions and the choice of contracts in international fruit supply chains," Agricultural Systems, Elsevier, vol. 176(C).
    12. Heikki Marjosola, 2021. "The problem of regulatory arbitrage: A transaction cost economics perspective," Regulation & Governance, John Wiley & Sons, vol. 15(2), pages 388-407, April.
    13. Button, Kenneth, 2019. "Applied economics and understanding trends in air transportation policy," Transport Policy, Elsevier, vol. 80(C), pages 78-85.
    14. Njoya, Eric Tchouamou, 2016. "Africa’s single aviation market: The progress so far," Journal of Transport Geography, Elsevier, vol. 50(C), pages 4-11.
    15. Rodolphe Durand & Robert M. Grant & Tammy L. Madsen & Sinziana Dorobantu & Aseem Kaul & Bennet Zelner, 2017. "Nonmarket strategy research through the lens of new institutional economics: An integrative review and future directions," Strategic Management Journal, Wiley Blackwell, vol. 38(1), pages 114-140, January.
    16. Antonio Estache, 2016. "Institutions for Infrastructure in Developing Countries: What We Know and the Lot We still Need to Know," Working Papers ECARES ECARES 2016-27, ULB -- Universite Libre de Bruxelles.
    17. Charlier, Jacques & Dobruszkes, Frédéric, 2020. "Between external forces and internal factors: The geography of domestic airline services in South Africa," Journal of Transport Geography, Elsevier, vol. 87(C).
    18. Florian Schaefer & Girum Abebe, 2015. "The case for industrial policy and its application in the Ethiopian cut flower sector," Working Papers 012, Policy Studies Institute.
    19. Cohen, Boyd & Winn, Monika I., 2007. "Market imperfections, opportunity and sustainable entrepreneurship," Journal of Business Venturing, Elsevier, vol. 22(1), pages 29-49, January.
    20. Meichsner, Nadine A. & O'Connell, John F. & Warnock-Smith, David, 2018. "The future for African air transport: Learning from Ethiopian Airlines," Journal of Transport Geography, Elsevier, vol. 71(C), pages 182-197.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jotrge:v:86:y:2020:i:c:s0966692320300776. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-transport-geography .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.