IDEAS home Printed from https://ideas.repec.org/a/pal/marecl/v25y2023i3d10.1057_s41278-022-00252-8.html
   My bibliography  Save this article

Seaport efficiency, port throughput, and economic growth in Africa

Author

Listed:
  • Enock Kojo Ayesu

    (Kwame Nkrumah University of Science & Technology)

  • Daniel Sakyi

    (Kwame Nkrumah University of Science & Technology)

  • Alexander Bilson Darku

    (University of Lethbridge)

Abstract

This paper examines the impact of seaborne trade on economic growth, from a port throughput and seaport efficiency perspective. We study the impact of port throughput on economic growth and the role seaport efficiency plays in that relationship. The paper uses panel data on 28 African countries with seaports, over the period 2010 to 2018, and we employ the system generalized method of moments approach for the analysis. We establish a direct significant positive effect of seaport efficiency and port throughput on economic growth in Africa. Specifically, a 1% increase in seaport efficiency (port throughput) improves economic growth between 0.014 and 0.038% (0.028% and 0.043%). We further show that improvement in seaport efficiency is vital for port throughput, to have its greater effect on economic growth in the Continent. Finally, regarding the other explanatory variables that influence economic growth, our findings reveal that, government spending, inflation, domestic investment, trade, financial development, and institutional quality are important determinants of economic growth in Africa. Based on these findings, we recommend port policies that promote seaport efficiency in Africa.

Suggested Citation

  • Enock Kojo Ayesu & Daniel Sakyi & Alexander Bilson Darku, 2023. "Seaport efficiency, port throughput, and economic growth in Africa," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 25(3), pages 479-498, September.
    • Handle: RePEc:pal:marecl:v:25:y:2023:i:3:d:10.1057_s41278-022-00252-8
    DOI: 10.1057/s41278-022-00252-8
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41278-022-00252-8
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/s41278-022-00252-8?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Cuong Nguyen Viet, 2015. "The impact of trade facilitation on poverty and inequality: Evidence from low- and middle-income countries," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 24(3), pages 315-340, April.
    2. Papke, Leslie E. & Wooldridge, Jeffrey M., 2005. "A computational trick for delta-method standard errors," Economics Letters, Elsevier, vol. 86(3), pages 413-417, March.
    3. Dollar, David & Kraay, Aart, 2002. "Growth Is Good for the Poor," Journal of Economic Growth, Springer, vol. 7(3), pages 195-225, September.
    4. Ben-David, Dan & Loewy, Michael B, 1998. "Free Trade, Growth, and Convergence," Journal of Economic Growth, Springer, vol. 3(2), pages 143-170, June.
    5. L. ALAN WINTERS & NEIL McCULLOCH & ANDREW McKAY, 2015. "Trade Liberalization and Poverty: The Evidence So Far," World Scientific Book Chapters, in: Non-Tariff Barriers, Regionalism and Poverty Essays in Applied International Trade Analysis, chapter 14, pages 271-314, World Scientific Publishing Co. Pte. Ltd..
    6. Ricardo J Sánchez & Jan Hoffmann & Alejandro Micco & Georgina V Pizzolitto & Martín Sgut & Gordon Wilmsmeier, 2003. "Port Efficiency and International Trade: Port Efficiency as a Determinant of Maritime Transport Costs," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 5(2), pages 199-218, June.
    7. Bottasso, Anna & Conti, Maurizio & Ferrari, Claudio & Merk, Olaf & Tei, Alessio, 2013. "The impact of port throughput on local employment: Evidence from a panel of European regions," Transport Policy, Elsevier, vol. 27(C), pages 32-38.
    8. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    9. Portugal-Perez, Alberto & Wilson, John S., 2009. "Why trade facilitation matters to Africa1," World Trade Review, Cambridge University Press, vol. 8(3), pages 379-416, July.
    10. Ziaul Haque Munim & Hans-Joachim Schramm, 2018. "The impacts of port infrastructure and logistics performance on economic growth: the mediating role of seaborne trade," Journal of Shipping and Trade, Springer, vol. 3(1), pages 1-19, December.
    11. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
    12. Herzer, Dierk, 2013. "Cross-Country Heterogeneity and the Trade-Income Relationship," World Development, Elsevier, vol. 44(C), pages 194-211.
    13. 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.
    14. Gordon Wilmsmeier & Jan Hoffmann, 2008. "Liner Shipping Connectivity and Port Infrastructure as Determinants of Freight Rates in the Caribbean," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 10(1-2), pages 130-151, March.
    15. Francisco L. Rivera-Batiz & Luis A. Rivera-Batiz, 2018. "International Trade with Endogenous Technological Change," World Scientific Book Chapters, in: Francisco L Rivera-Batiz & Luis A Rivera-Batiz (ed.), International Trade, Capital Flows and Economic Development, chapter 2, pages 33-70, World Scientific Publishing Co. Pte. Ltd..
    16. Qiao Lei & Chris Bachmann, 2020. "Assessing the role of port efficiency as a determinant of maritime transport costs: evidence from Canada," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 22(4), pages 562-584, December.
    17. Bo Chen & Yuen Pau Woo, 2010. "Measuring Economic Integration in the Asia-Pacific Region: A Principal Components Approach," Asian Economic Papers, MIT Press, vol. 9(2), pages 121-143, Summer.
    18. David Roodman, 2009. "A Note on the Theme of Too Many Instruments," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 71(1), pages 135-158, February.
    19. James E. Anderson & Douglas Marcouiller, 2002. "Insecurity And The Pattern Of Trade: An Empirical Investigation," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 342-352, May.
    20. López-Bermúdez, Beatriz & Freire-Seoane, María Jesús & Nieves-Martínez, Diego José, 2019. "Port efficiency in Argentina from 2012 to 2017: An ally for sustained economic growth," Utilities Policy, Elsevier, vol. 61(C).
    21. Spilimbergo, Antonio, 2000. "Growth and Trade: The North Can Lose," Journal of Economic Growth, Springer, vol. 5(2), pages 131-146, June.
    22. Mounir Dahmani & Mohamed Mabrouki & Adel Ben Youssef, 2022. "ICT, trade openness and economic growth in Tunisia: what is going wrong?," Economic Change and Restructuring, Springer, vol. 55(4), pages 2317-2336, November.
    23. Ariel Herbert Fambeu, 2021. "Poverty reduction in sub-Saharan Africa: The mixed roles of democracy and trade openness," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 30(8), pages 1244-1262, November.
    24. David Dollar & Aart Kraay, 2004. "Trade, Growth, and Poverty," Economic Journal, Royal Economic Society, vol. 114(493), pages 22-49, February.
    25. Yilin Li & Jingbu Wang & Keunyeob Oh, 2022. "Effects of Globalization on the Convergence of Poverty Levels among Asian Countries," International Economic Journal, Taylor & Francis Journals, vol. 36(2), pages 193-205, April.
    26. Fernando Perera-Tallo, 2003. "Growth Due To Globalization," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(2), pages 651-676, May.
    27. Freire-Seoane, María Jesús & López-Bermúdez, Beatriz & De la Peña Zarzuelo, Ignacio, 2020. "The effects of maritime container transport on economic growth in the countries on the west coast of Latin America," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    28. Brambor, Thomas & Clark, William Roberts & Golder, Matt, 2006. "Understanding Interaction Models: Improving Empirical Analyses," Political Analysis, Cambridge University Press, vol. 14(1), pages 63-82, January.
    29. Bruce A. Blonigen & Wesley W. Wilson, 2008. "Port Efficiency and Trade Flows," Review of International Economics, Wiley Blackwell, vol. 16(1), pages 21-36, February.
    30. Mamta Kumari & Nalin Bharti, 2021. "Trade and logistics performance: does country size matter?," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 23(3), pages 401-423, September.
    31. Bottasso, Anna & Conti, Maurizio & Ferrari, Claudio & Tei, Alessio, 2014. "Ports and regional development: A spatial analysis on a panel of European regions," Transportation Research Part A: Policy and Practice, Elsevier, vol. 65(C), pages 44-55.
    32. Daniel Sakyi & Jose Villaverde & Adolfo Maza, 2015. "Trade openness, income levels, and economic growth: The case of developing countries, 1970--2009," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 24(6), pages 860-882, September.
    33. Ben-David, Dan & Loewy, Michael B, 2000. "Knowledge Dissemination, Capital Accumulation, Trade, and Endogenous Growth," Oxford Economic Papers, Oxford University Press, vol. 52(4), pages 637-650, October.
    34. John Egyir & Daniel Sakyi & Samuel Tawiah Baidoo, 2020. "How does capital flows affect the impact of trade on economic growth in Africa?," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 29(3), pages 353-372, April.
    35. Ibrahim, Muazu & Alagidede, Paul, 2018. "Effect of financial development on economic growth in sub-Saharan Africa," Journal of Policy Modeling, Elsevier, vol. 40(6), pages 1104-1125.
    36. Kevin X. Li & Mengjie Jin & Guanqiu Qi & Wenming Shi & Adolf K. Y. Ng, 2018. "Logistics as a driving force for development under the Belt and Road Initiative – the Chinese model for developing countries," Transport Reviews, Taylor & Francis Journals, vol. 38(4), pages 457-478, July.
    37. Ştefan Cristian Gherghina & Mihaela Onofrei & Georgeta Vintilă & Daniel Ştefan Armeanu, 2018. "Empirical Evidence from EU-28 Countries on Resilient Transport Infrastructure Systems and Sustainable Economic Growth," Sustainability, MDPI, vol. 10(8), pages 1-34, August.
    38. Abdul Jalil & Abdul Rauf, 2021. "Revisiting the link between trade openness and economic growth using panel methods," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 30(8), pages 1168-1187, November.
    39. John S. Wilson & Catherine L. Mann & Tsunehiro Otsuki, 2003. "Trade Facilitation and Economic Development: A New Approach to Quantifying the Impact," The World Bank Economic Review, World Bank, vol. 17(3), pages 367-389, December.
    40. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    41. Daniel Sakyi & José Villaverde & Adolfo Maza & Isaac Bonuedi, 2017. "The Effects of Trade and Trade Facilitation on Economic Growth in Africa," African Development Review, African Development Bank, vol. 29(2), pages 350-361, June.
    42. Hector Sala & Pedro Trivín, 2014. "Openness, Investment and Growth in Sub-Saharan Africa," Journal of African Economies, Centre for the Study of African Economies, vol. 23(2), pages 257-289.
    Full references (including those not matched with items on IDEAS)

    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. Daniel Sakyi & José Villaverde & Adolfo Maza & Isaac Bonuedi, 2017. "The Effects of Trade and Trade Facilitation on Economic Growth in Africa," African Development Review, African Development Bank, vol. 29(2), pages 350-361, June.
    2. Victor Ushahemba Ijirshar, 2022. "Trade Facilitation and Economic Growth Among Middle-Income Countries," Papers 2204.11088, arXiv.org.
    3. Bunje, Madinatou Yeh & Abendin, Simon & Wang, Yin, 2022. "The multidimensional effect of financial development on trade in Africa: The role of the digital economy," Telecommunications Policy, Elsevier, vol. 46(10).
    4. Courage Mlambo, 2021. "The Impact of Port Performance on Trade: The Case of Selected African States," Economies, MDPI, vol. 9(4), pages 1-18, September.
    5. Gnangnon, Sèna Kimm, 2020. "Aid for Trade flows and Poverty Reduction in Recipient-Countries," EconStor Preprints 213807, ZBW - Leibniz Information Centre for Economics.
    6. Patricia Sourdin & Richard Pomfret, 2012. "Trade Facilitation," Books, Edward Elgar Publishing, number 14596.
    7. Enock Kojo Ayesu & Clement Agonyim Asaana, 2023. "Global shipping and climate change impacts in Africa: the role of international trade," Journal of Shipping and Trade, Springer, vol. 8(1), pages 1-17, December.
    8. Wessel, Jan, 2019. "Evaluating the transport-mode-specific trade effects of different transport infrastructure types," Transport Policy, Elsevier, vol. 78(C), pages 42-57.
    9. T. Gries & M. Redlin, 2020. "Trade and economic development: global causality and development- and openness-related heterogeneity," International Economics and Economic Policy, Springer, vol. 17(4), pages 923-944, October.
    10. Alexander B. Darku, 2021. "International trade and income convergence: Sorting out the nature of bilateral trade," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(4), pages 5337-5348, October.
    11. Rao, B. Bhaskara & Vadlamannati, Krishna Chaitanya, 2011. "Globalization and growth in the low income African countries with the extreme bounds analysis," Economic Modelling, Elsevier, vol. 28(3), pages 795-805, May.
    12. Sèna Kimm Gnangnon, 2023. "Do unilateral trade preferences help reduce poverty in beneficiary countries?," International Journal of Economic Policy Studies, Springer, vol. 17(1), pages 249-288, February.
    13. Léopold BIARDEAU & Anne BORING, 2017. "L’impact de l’aide au développement sur les flux commerciaux entre pays donateurs et pays récipiendaires," Working Paper 464d860e-562e-4ae7-98f5-1, Agence française de développement.
    14. Marilyne Huchet†Bourdon & Chantal Le Mouël & Mariana Vijil, 2018. "The relationship between trade openness and economic growth: Some new insights on the openness measurement issue," The World Economy, Wiley Blackwell, vol. 41(1), pages 59-76, January.
    15. Aribah Aslam, 2020. "The hotly debate of human capital and economic growth: why institutions may matter?," Quality & Quantity: International Journal of Methodology, Springer, vol. 54(4), pages 1351-1362, August.
    16. Carlos A. Carrasco & Edgar Demetrio Tovar-García, 2021. "Trade and growth in developing countries: the role of export composition, import composition and export diversification," Economic Change and Restructuring, Springer, vol. 54(4), pages 919-941, November.
    17. Zhicheng Liang, 2007. "Trade Liberalization, Economic Restructuring and Urban Poverty: The Case of China," Asian Economic Journal, East Asian Economic Association, vol. 21(3), pages 239-259, September.
    18. , Aisdl, 2020. "The Impact of Trade Facilitation on Vietnam’s Trade Flows," OSF Preprints uvw8p, Center for Open Science.
    19. Richard Pomfret & Patricia Sourdin, 2010. "Why do trade costs vary?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 146(4), pages 709-730, December.
    20. Daniel Sakyi & Jose Villaverde & Adolfo Maza & Krishna Reddy Chittedieonardo, 2012. "Trade Openness, Growth and Development: Evidence from Heterogeneous Panel Cointegration Analysis for Middle-Income Countries," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, August.

    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:pal:marecl:v:25:y:2023:i:3:d:10.1057_s41278-022-00252-8. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    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.