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What Factors Drive Transport and Logistics Costs in Africa?

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  • Patrick Plane

Abstract

We analyze the domestic transport and logistics costs of importing a 20-foot container into Africa. We run regressions on a panel of 50 African countries for the period 2006–2014 using the RE-2SLS estimator. Distance from port of arrival to the point of delivery is an important explanatory factor of cost. Time-varying variables yield additional and valuable information. Reducing processing times and adjusting the ratio of the purchasing power parity conversion factor to the market exchange rate would contribute to save on the cost to import.

Suggested Citation

  • Patrick Plane, 2021. "What Factors Drive Transport and Logistics Costs in Africa?," Journal of African Economies, Centre for the Study of African Economies, vol. 30(4), pages 370-388.
    • Handle: RePEc:oup:jafrec:v:30:y:2021:i:4:p:370-388.
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    File URL: http://hdl.handle.net/10.1093/jae/ejaa019
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    Cited by:

    1. Foltz, Jeremy & Li, Kangli, 2023. "Competition and corruption: Highway corruption in West Africa," Journal of Development Economics, Elsevier, vol. 163(C).
    2. Wim Naudé, 2023. "Late industrialisation and global value chains under platform capitalism," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 50(1), pages 91-119, March.

    More about this item

    Keywords

    cost of transport and logistics; Africa; processing time; PPP conversion factor; transaction costs; JEL classification: L92; 055; H54; N77;
    All these keywords.

    JEL classification:

    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • N77 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Africa; Oceania

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