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“When you need it quick, let us ship it right”: On the Importance of Port Efficiency and Service Quality to Comply with Food Trade Standards in Ghana

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  • Kornher, Lukas
  • Sakyi, Daniel
  • Tannor, Linus Linnaeus

Abstract

Agricultural exports are especially important because of their great potential for poverty reduction among smallholder farmers. However, many African countries, such as Ghana, fail to realize their full export potential due to institutional and technical constraints. This paper examines the importance of port efficiency and service quality in complying with food trade standards in Ghana. We provide a stylized theoretical model in which exporting firms are willing to pay for improved port service quality as long as the marginal revenue derived from a reduced likelihood of (border) rejection exceeds the marginal costs for improved service quality. We test the model's predictions using primary data from 120 agri-food exporters in Ghana. Our results show that about two-thirds of exporting firms have a positive willingness-to-pay for a reduction in the handling time at the port and the risk of spoilage due to inadequate handling. These findings emphasize the importance of trade facilitation measures in improving port efficiency and service quality to accelerate agricultural exports.
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Suggested Citation

  • Kornher, Lukas & Sakyi, Daniel & Tannor, Linus Linnaeus, 2023. "“When you need it quick, let us ship it right”: On the Importance of Port Efficiency and Service Quality to Comply with Food Trade Standards in Ghana," 2023: The Future of (Ag-) Trade and Trade Governance in Times of Economic Sanctions and Declining Multilateralism, December 10-12, Clearwater Beach, FL 339492, International Agricultural Trade Research Consortium.
    • Handle: RePEc:ags:iats23:339492
    DOI: 10.22004/ag.econ.339492
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    References listed on IDEAS

    as
    1. Luisa Kinzius & Alexander Sandkamp & Erdal Yalcin, 2019. "Trade protection and the role of non-tariff barriers," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 155(4), pages 603-643, November.
    2. 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.
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    Cited by:

    1. Wassie, Mengistu Alamneh & Kornher, Lukas & Zaki, Chahir, 2024. "Revisiting the Impact of Trade Facilitation Measures in Africa: Structural Gravity Estimation and Ad Valorem Tariff Equivalents," IAAE 2024 Conference, August 2-7, 2024, New Delhi, India 344296, International Association of Agricultural Economists (IAAE).

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    More about this item

    Keywords

    Agribusiness; Agricultural Finance; International Relations/Trade;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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