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The relevance of international transport costs on food prices: Endogenous and exogenous effects

  • Wilmsmeier, Gordon
  • Sanchez, Ricardo J.

The paper addresses the problem of transport costs and their influence on food prices for South American imports. While transport does not seem to be in the focus of existing analyses, its impact on food prices might be underestimated and even closely linked to the development of commonly mentioned drivers of food prices. Since transport price formation is a function of demand and supply, drivers of food prices are also expected to impact on transport prices. The authors argue that a number of relevant factors that drive transport costs - and in consequence food prices - can be influenced by policy makers. Based on empirical analysis, the authors explain the functioning of the determinants of transport costs in the segment of international shipping, trying to describe their exogenous and endogenous components. These results are discussed in reference to policy development in the region.

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Article provided by Elsevier in its journal Research in Transportation Economics.

Volume (Year): 25 (2009)
Issue (Month): 1 ()
Pages: 56-66

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Handle: RePEc:eee:retrec:v:25:y:2009:i:1:p:56-66
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  1. Ricardo J S�nchez & Jan Hoffmann & Alejandro Micco & Georgina V Pizzolitto & Mart�n Sgut & Gordon Wilmsmeier, 2003. "Port Efficiency and International Trade: Port Efficiency as a Determinant of Maritime Transport Costs," Maritime Economics and Logistics, Palgrave Macmillan, vol. 5(2), pages 199-218, June.
  2. Peter de Langen, 2004. "Governance in Seaport Clusters," Maritime Economics and Logistics, Palgrave Macmillan, vol. 6(2), pages 141-156, June.
  3. Francois, Joseph F & Wooton, Ian, 2001. "Trade in International Transport Services: The Role of Competition," Review of International Economics, Wiley Blackwell, vol. 9(2), pages 249-61, May.
  4. Clark, Ximena & Dollar, David & Micco, Alejandro, 2004. "Port efficiency, maritime transport costs, and bilateral trade," Journal of Development Economics, Elsevier, vol. 75(2), pages 417-450, December.
  5. Kevin Cullinane & Dong-Wook Song, 2002. "Port privatization policy and practice," Transport Reviews, Taylor & Francis Journals, vol. 22(1), pages 55-75, January.
  6. Bichou, K. & Gray, R., 2005. "A critical review of conventional terminology for classifying seaports," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(1), pages 75-92, January.
  7. Wilmsmeier, Gordon & Hoffmann, Jan & Sanchez, Ricardo J., 2006. "The Impact of Port Characteristics on International Maritime Transport Costs," Research in Transportation Economics, Elsevier, vol. 16(1), pages 117-140, January.
  8. Gordon Wilmsmeier & Jan Hoffmann, 2008. "Liner Shipping Connectivity and Port Infrastructure as Determinants of Freight Rates in the Caribbean," Maritime Economics and Logistics, Palgrave Macmillan, vol. 10(1-2), pages 130-151, March.
  9. Jan Hoffmann, 2001. "Latin American Ports: Results and Determinants of Private Sector Participation," Maritime Economics and Logistics, Palgrave Macmillan, vol. 3(2), pages 221-241, June.
  10. Beatrice Tovar & Sergio Jara-Diaz & Lourdes Trujillo, 2003. "Production and cost functions and their application to the port sector : a literature survey," Policy Research Working Paper Series 3123, The World Bank.
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