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Air Cargo beyond Trade Barriers in Africa

Author

Listed:
  • Dettmer, Bianka

    () (Friedrich Schiller University Jena)

  • Freytag, Andreas

    () (Friedrich Schiller University Jena)

  • Draper, Peter

    () (South African Institute of International Affairs)

Abstract

We develop a methodology based on two important criteria - sensitivity in delivery time and value-to-weight ratio – to classify air cargo products. The classification is applied to evaluate the trade integration in Southern Africa since air cargo is a valuable option to overcome trade barriers associated with poor land transport infrastructure and corruption. We find that South Africa’s exports to industrialized countries consist of precious products such as diamonds and gold. These products tend to be transported in the hand baggage of a security personnel as they leave the loading weight of an average airplane almost unaffected. When correcting African trade for these ‘invisible outliers’ in the loading freight, we find that African trade integration including Southern Africa is based upon a comparatively higher share of air cargo relevant products than Southern Africa’s trade with industrialized and emerging economies. A more liberal market for air cargo services can reduce transport costs and will allow the continent to integrate even further.

Suggested Citation

  • 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.
  • Handle: RePEc:ris:integr:0623
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    References listed on IDEAS

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    Cited by:

    1. Peter Draper & Andreas Freytag & Sören Scholvin & Luong Thanh Tran, 2016. "Is a 'Factory Southern Africa' Feasible? Harnessing Flying Geese to the South African Gateway," CESifo Working Paper Series 5867, CESifo Group Munich.
    2. Peter Draper & Andreas Freytag & Sören Scholvin & Luong Thanh Tran, 2016. "Is a ‘Factory Southern Africa’ Feasible?," World Bank Other Operational Studies 23788, The World Bank.

    More about this item

    Keywords

    Trade Cost; Time Sensitivity; Air Cargo Transport; Intra-African Trade Integration;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation

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