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Demand analysis in Angola seaports


  • Carlos Pestana Barros


This paper presents a demand analysis of Angola seaports from 1996 to 2013 using the Berry, Levinsohn, and Pakes (BLP) demand model. The BLP is a random coefficient Logit demand model that takes into account the endogeneity of the price in the demand equation. The model reveals that seaports on Angola is explained by the average price, the price of maritime transport services, the price of substitute imports by airports, and by the income in the port region. The price is endogenous in demand equation and the endogeneity is taken into account in demand estimation. The price of air transportation is negative, and therefore it is a complementary good. The price of container handling is positive, and therefore it is a substitution good. Policy implication is also derived.

Suggested Citation

  • Carlos Pestana Barros, 2016. "Demand analysis in Angola seaports," Maritime Policy & Management, Taylor & Francis Journals, vol. 43(6), pages 676-682, August.
  • Handle: RePEc:taf:marpmg:v:43:y:2016:i:6:p:676-682
    DOI: 10.1080/03088839.2016.1151087

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    References listed on IDEAS

    1. Reynaert, Mathias & Verboven, Frank, 2014. "Improving the performance of random coefficients demand models: The role of optimal instruments," Journal of Econometrics, Elsevier, vol. 179(1), pages 83-98.
    2. Aviv Nevo, 2011. "Empirical Models of Consumer Behavior," Annual Review of Economics, Annual Reviews, vol. 3(1), pages 51-75, September.
    3. Arthur Lewbel & Krishna Pendakur, 2009. "Tricks with Hicks: The EASI Demand System," American Economic Review, American Economic Association, vol. 99(3), pages 827-863, June.
    4. Christopher M Anderson & James J Opaluch & Thomas A Grigalunas, 2009. "The Demand for Import Services at US Container Ports," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 11(2), pages 156-185, June.
    5. King-Fai Fung, 2001. "Competition between the ports of Hong Kong and Singapore: a structural vector error correction model to forecast the demand for container handling services," Maritime Policy & Management, Taylor & Francis Journals, vol. 28(1), pages 3-22, January.
    6. Chin-Tsai Lin & Su-Man Wang & Chang-Tzu Chiang, 2001. "Manpower supply and demand of ocean deck officers in Taiwan," Maritime Policy & Management, Taylor & Francis Journals, vol. 28(1), pages 91-102, January.
    7. Nevo, Aviv, 1998. "Identification of the oligopoly solution concept in a differentiated-products industry," Economics Letters, Elsevier, vol. 59(3), pages 391-395, June.
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